Net Neutrality/Internet Regulation  

CTIA Position:
CTIA-The Wireless Association® believes policymakers should take a cautioned, reasoned approach to any discussion on Internet regulation, as we believe that no prescriptive regulation in this area is necessary to facilitate the continued evolution and innovation of broadband services – especially with respect to the wireless sector. Congress said it best in Section 230 of the Communications Act of 1934, as amended, when it established as the policy of the United States, the “[preservation of] the vibrant and competitive free market that presently exists for the Internet and other interactive computer services, unfettered by Federal or State regulation….”

The unique aspects that wireless broadband brings to the U.S. broadband market and the value of mobile broadband services to American consumers should not be understated. While offering many of the same services and capabilities, wireless is a different form of broadband than cable and wireline, and in the absence of regulatory intervention, it is evolving rapidly and delivering services unimagined just a short time ago. Accordingly, it should be no surprise that consumer use of wireless broadband is the fastest growing broadband service, especially for the many Americans who have no other broadband service.

The wireless industry in America leads the world in competition, value, innovation and overall satisfaction, and makes substantial contributions to the U.S. economy each year. Competition is not only good for consumers and the economy, it’s key to delivering high-quality wireless broadband services to all Americans.

CTIA believes that this constantly-evolving, financially-healthy, consumer-driven industry is exactly the place where the government should analyze what would happen without government intervention, before it moves down the path of regulation.

Key Points:

• Net neutrality rules will have unintended consequences. Similar to the FCC’s decision to impose “open access” obligations on the 700 MHz C Block license, the imposition of net neutrality on wireless will inject uncertainly into the market and have an impact on investment. This could ultimately harm consumers by impacting what is the most competitive wireless market on the planet.
• Wireless networks are different. Wireless networks are inherently different than the networks for which the Broadband Policy Statement and the subsequent net neutrality rules were developed. The FCC has consistently acknowledged such a difference and as such should recognize the unique aspects of wireless that militate against applying wireline net neutrality rules to a wireless world. Without the ability to adapt, evolve, and respond to the changing wireless environment through reasonable network management, a consumer’s intensive network use can harm all other users in the vicinity.
• The proposed net neutrality rules ignore the realities of wireless network management. Because of the inherent technological differences, wireless carriers actively manage their networks to both ensure the highest-quality Internet experience for all consumers – not only the few who demand inordinate amounts of bandwidth and capacity – and to ensure that services that are time-sensitive are given the resources to function properly.
• Wireless carriers compete vigorously on network quality and capacity. One need look no further than the advertising campaigns of wireless providers to see that coverage, capacity and quality of wireless broadband service is a major area of competition and differentiation for wireless providers. Carriers compete vigorously to win customers in this vibrant marketplace and do so by competing on nearly every aspect of service. Reducing wireless broadband network management to a lowest common denominator set of practices will reduce or eliminate this important competitive aspect of wireless broadband resulting in less innovation and choice for consumers.
• Regulation of one area will impact all parts of the interdependent wireless ecosystem. The FCC’s proposed rules suggest that regulation of broadband Internet access providers will ensure the open nature of the Internet. However, as CTIA and the FCC have stated, wireless broadband is part of a complex ecosystem. For this reason, policymakers should be wary of the unintended consequences of altering the interaction between those ecosystem elements.

Last Updated: January 2010