Posted At: March 4, 2010 10:27 AM
Posted By: Christopher Guttman-McCabe, Vice President, Regulatory Affairs, CTIA - The Wireless Association®
Related Categories: Broadband, Spectrum, Net Neutrality, FCC
Back in September 2009, CTIA and other industry members provided the FCC with extensive evidence on the status of competition, investment, and innovation in the wireless ecosystem. A lot has changed since then and so a few weeks ago, we submitted an update to those filings.
As the Commission works on the 14th annual CMRS Competition Report, CTIA took an opportunity to highlight our industry’s numerous changes and upgrades to networks, handsets, and applications that benefit consumers. 
4G Innovation & Investment
- Sprint/Clearwire have continued its 4G expansion in the last quarter of 2009 with new WiMax deployments in Chicago, Seattle, Dallas, Charlotte, and Philadelphia, among other cities.
- In the development and deployment of the Long Term Evolution (LTE) 4G standard, Verizon Wireless, AT&T, and Cox Communications continue to test their LTE networks for commercial availability by end of 2010/beginning of 2011.
Robust Device Market
- In the second quarter of 2009, 28% of all handsets sold were smart phones.
- Google’s open source mobile platform, Android, has stormed onto the smart phone scene with new devices by HTC, Motorola, and Samsung, in addition to Google’s NexusOne.
- Manufacturers are enabling devices to use technologies outside of the licensed wireless networks. Research in Motion (RIM) recently released its first Blackberry smart phone with support for both 3G connectivity and voice calls over Wi-Fi. Similarly, Apple lifted restrictions on iPhone and iPod Touch VoIP functionality.
- AT&T announced it has certified more than 370 wireless specialty consumer and machine-to-machine devices through 2009, including netbooks, eReaders, personal navigation devices, digital picture frames, and smart grid devices.
Dramatic Growth in Applications Market
- Since Apple’s App Store was launched in July of 2008, more than three billion of its more than 130,000 applications have been downloaded.
- In December 2009, downloads from the Android Market and Apple’s App Store increased more than twenty-two percent and fifty percent, respectively, over November.
- Now, there are more than 170,000 applications available, almost 28% more than were available when CTIA filed its original competition comments.
- In 2010, consumers are projected to spend $6.2 billion in mobile application stores worldwide to download over 8 billion applications – of which, 8 out of 10 will be free. By 2013, worldwide downloads from mobile application stores will surpass 21 billion.
The “Price War”: Innovative Pricing Plans Add Choice and Flexibility
As consumers keep pace with the rapid cycle of technological innovation, providers also are innovating in terms of the range of service options available to consumers.
- During the first month of 2010, AT&T, Verizon Wireless, and US Cellular reduced the price of their unlimited nationwide voice plans. T-Mobile provides similar unlimited plans at $50 for individuals and $80 for a family plan. Sprint has unlimited talk, text, and data plans for $100.
- In addition to innovations in pricing, providers have responded to consumer demand for more flexibility within - and without - contracts. MetroPCS, Boost Mobile, Pocket, and Cricket offer contract-free wireless service with unlimited talk, text, and data plans between $40-$50. Verizon Wireless announced three new pre-paid plans for wireless broadband while T-Mobile offers a pre-paid BlackBerry with unlimited talk, text, and data without a contract for $80/month.
- Yet another provider innovation in wireless plans gives consumers access to emerging smart phone technology while maintaining the handset subsidy that makes new smart phones readily available to anyone. T-Mobile has introduced a tiered program for all post-paid customers that allow them to upgrade to a new smart phone at any time with a subsidy based on the time remaining on their contract.
The tremendous developments over the last six months clearly demonstrate that the “virtuous cycle” of the wireless ecosystem is alive and healthy. Driven by the intense competition of the industry and the FCC’s long-standing, flexible, market-driven policies, this cycle will continue to thrive and help maintain America’s global leadership in wireless.