In August, we focused on consumer issues on the blog, including cybersecurity and the important steps the wireless industry takes to protect wireless networks and consumers.

Protecting our nation’s broadband networks is a shared goal between the industry and regulators because of the vital role broadband plays for our society, economy and national defense. That’s why any security program that doesn’t provide the flexibility needed to address the complex realities of cyber threats is potentially more dangerous than beneficial. In our comments to the FCC, we explained our position against their proposed “Cyber Security Certification Program” because it’s an ineffective and inefficient tool that can do more harm than good.

Cybersecurity is a crucial aspect of the network management practices of all wireless broadband network operators. As the current regulatory framework allows the industry to be vibrantly competitive, wireless providers are able to meet consumer demand for a safe and secure network. These competitive incentives to invest and innovate in cyber security have driven the industry to prioritize security and develop dynamic network management techniques that have largely prevented any serious cyberattacks up to this point.

While competition provides strong incentive for individual providers to protect their networks, there have also been significant industry-wide collaborative initiatives to share information and develop best practices for network management. CTIA and its member companies participate in numerous industry programs and public/private partnerships focused on issues central to cybersecurity. Through these efforts and others, the industry is constantly developing new security techniques to protect the entire wireless broadband ecosystem and stay in front of constantly evolving threats.

The FCC can better promote cybersecurity by coordinating its efforts with those already underway at other federal agencies and focusing on public-private partnerships. Even a voluntary certification program like the Commission proposed is logistically challenging and is unlikely to provide the flexibility wireless broadband providers need to adapt to a constantly changing security environment.

The key to effective cybersecurity is reasonable and intelligent network management driven by the competitive need to remain constantly vigilant to protect consumer information. 

Judging from our blog traffic in August, it seems our readers enjoyed our consumer tips. We had fun writing and compiling the information too!

This month, our blog is focused on emergency preparedness. Wireless technology has constantly proven to be an essential and lifesaving tool in an emergency situation. When consumers need it most, they depend on their wireless products and services to communicate with emergency personnel, to receive critical safety information and to make sure their loved ones are out of harm's way.

Keep visiting our blog this month as we feature stories on how wireless has helped citizens and the public safety community during emergencies, disasters and crises.

In 2005, Hurricane Katrina landed and caused unbelievable damage in Louisiana and Mississippi. It was the deadliest U.S. hurricane since 1928. In recognition of the five year anniversary, CTIA takes a look back at the wireless industry response to the destruction. Our members worked together and tirelessly to restore service in the region while also providing much-needed assistance for customers and employees stricken by the hurricane.

After the FCC released the Open Internet Public Notice, I released the following statement: 

“We are pleased the FCC has put out the Public Notice for comment on the application of open Internet rules for our industry. We are happy the Chairman and the Commissioners realize that wireless is different. We will continue to work with them to explain why these rules are unnecessary and should not be applied to the wireless ecosystem.

“The fact is that mobile Internet works for Americans. With more than 285 million subscriber connections, consumers are seeing the tremendous benefits of the industry’s innovation and investment in mobile broadband.

“We look forward to continuing the dialogue with the Commission on why wireless is different.”

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In response to the FCC’s decision to close the AWS-3 proceeding, I issued the following statement: 

“We were pleased to learn that the FCC has removed the AWS-3 proceeding from circulation and will continue to focus on finding a proper pairing for the spectrum. Contrary to M2Z’s statements, this is absolutely in line with the National Broadband Plan. It is an important step as it supports the efforts by the FCC, Congress and the White House to bring additional spectrum to market so the wireless ecosystem can continue to provide our consumers with the most innovative industry in the world.

“As we had argued throughout the proceeding, a designer allocation auction that would be tailored for one company was not in the public’s interest, especially when that company was offering broadband service that is slow by even yesterday’s standards.” 

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As I spent some additional time this weekend reviewing the recently-released GAO Report entitled "Enhanced Data Collection Could Help FCC Better Monitor Competition in the Wireless Industry,” I noticed a trend. Maybe my glass is “half full,” but as I looked at this report, the FCC’s recent release of consumer complaint data, the FCC’s “Bill Shock” survey results, Better Business Bureau (BBB) data, as well as a GAO report from December 2009, there were significant positive findings about the wireless industry (again, from the BBB and the Federal Government). Since they seemed to have been lost in the headlines, I want to highlight a few for you.

First, last week's GAO Report found that the cost of wireless service in 2009, adjusted for inflation, is about 50% less than in 1999. According to the GAO, that “illustrates consumers are getting more wireless service for lower costs than ten years ago.” Think about that. And think about how few other consumer products cost less than they did ten years ago, let alone 50% less. Unfortunately, these positive trends were largely missed in many of the press stories.

The next two government reports contained some extremely positive numbers regarding customer satisfaction. First, a December 2009 GAO report said that “based on a GAO survey of adult wireless phone users, an estimated 84 percent of users are very or somewhat satisfied with their wireless phone service.” This was followed by a recent survey commissioned by the FCC. In that survey, released in June, 92% of those surveyed were either somewhat or very satisfied with their wireless service. Both of these are very strong numbers, and both were largely missed in the debates that occurred upon the release of this information.

This leads me to the recent data from the FCC on consumer complaints for 4Q2009. With the 4^th quarter data now available, the annual data shows that wireless carrier-related complaints fell 4% from 2008 to 2009, even though overall wireless subscribership grew almost 6%. Subscribers up, complaints down – a very positive equation for consumers. When you combine this data with information from the Better Business Bureau, which says that more than 97% of complaints regarding wireless service are resolved, the picture is even better.

By the way, the only complaint category that the FCC tracks that seems to be on a continuous upward trajectory is the area of Telephone Consumer Protection Act (TCPA) complaints, which come from prohibited activities that third parties engage in, not the carriers. These include things such as email and text message SPAM, autodialed calls and live or recorded telemarketing calls to wireless devices. The annual data shows that TCPA-related complaints increased 13.5% from 2008 to 2009 and comprised 68% of all supposed wireless-related complaints in 2008, rising to 72% in 2009. CTIA will soon send a letter to FCC Chairman Julius Genachowski and FCC Consumer and Governmental Affairs Bureau Chief Joel Gurin asking that they do everything in their power to (1) increase enforcement to combat and deter these third party violation of the TCPA and CAN-SPAM Act through stronger enforcement, and (2) recognize that violations of the TCPA should not be attributed to carriers or reported as wireless complaints.
   
The positive statistics do not surprise me. The reality is that the industry is addressing wireless customers’ concerns every day. Competition compels them to listen and respond quickly.  Carriers also provide many ways to help customers understand and control their bills and wireless use. Numerous wireless providers, including AT&T, Cellcom, SouthernLINC Wireless, Sprint Nextel, T-Mobile, U.S. Cellular, Verizon Wireless and others provide consumers the ability to check monthly use via the web or by dialing shortcuts from their mobile devices. Wireless customers also can check their use with applications on their smartphones. CTIA previously posted a blog entitled, "How to Manage Your Wireless Account" and you can read it here.

One subject that continues to get attention in some of these reports is the issue of early termination fees, which I will address later in another blog post. Suffice it to say, I think many critics are missing the forest for the trees. First, wireless consumers have a range of choices in their service plans. Pre-paid service, where consumers do not enter into a contract and do not pay an early termination fee if they leave, is an increasingly popular choice.  A recent report said that in the fourth quarter of 2009, 65% of net subscriber additions were new pre-paid customers. Further, I looked this morning at the new (September 2010) 40-page Best Buy mobile catalog, and 31 of the 64 phones that are advertised in the center pull-out section are from pre-paid providers. In the back of the catalog service-plan options are listed, they offer plans from nine different pre-paid providers. Pre-paid is a vibrant and growing segment of the industry.

On the other hand, if consumers want a significantly subsidized handset, they can enter into a contract. The early termination fee that is a part of the contract is no different than what we experience in situations such as apartment rentals, auto leases, club memberships, subscriptions, equipment rental, to name just a few. However, in this case, the consumer gets a mini-computer, in the form of a wireless handset, at a price point that is affordable for many Americans. In exchange, a service provider receives the commitment from a consumer to be their customer for a certain period of time. Why anyone would attack a business model which offers consumers amazing choices, as well as the potential to get broadband access devices at very low prices, confuses me. How can it be good for American wireless providers, and their customers, to have the option of a subsidized phone removed from their range of choices?

All of this data - most of which is from the Federal Government - proves that consumers are enjoying lower prices, a greater variety of products and service options and better service. Maybe I am an optimist. But the way I see it, whether it is the percent of satisfied customers in the “Bill Shock” survey or the 2009 GAO report, the decrease in the number of complaints to the FCC from 2008 to 2009, the positive numbers from the Better Business Bureau regarding the settlement of consumer concerns or the fact that prices are 50% of what they were 10 years ago, the wireless industry trend is amazingly positive for consumers.

Hopefully the Federal Government is reading its own reports.

Today’s consumer tips are focused on debunking more urban myths.

One of the more popular questions we have received is on whether you can use your phone to unlock your car. The short answer is “no,” but we recommend you check out Snopes.com for their explanation.

Similarly, we've heard the one that states if you lock yourself out of your car and have a keyless remote at home (or at a location that someone can grab), that individual can unlock your car by sending the “signal” through the phone. This is also a hoax. For more information, watch this video from Discovery Channel’s Myth Busters.

Finally, here’s an email chain letter that mixes half-truths with false information. The letter’s subject is on “Five Things You Didn’t Know Your Cell Phone Could Do.” Typically, the letter focuses on a worldwide emergency number; an information number; unlocking your car; reserving battery power; and disabling a stolen phone.  We’ve already talked about unlocking your car, but here’s Snopes.com’s take on the chain letter.

After the Government Accountability Office (GAO) released their report on wireless competition, I released the following statement: 

“In finding that wireless consumers are seeing ‘lower prices and better coverage,’ today’s GAO report confirms what we’ve been saying for a long time - that the U.S. wireless industry is extremely competitive and continues to respond to increasing consumer demand by delivering real benefits for American consumers.

“It is significant that the GAO reports that the cost of wireless service in 2009, adjusted for inflation, is about 50 percent less than in 1999. According to the GAO, that ‘illustrates consumers are getting more wireless service for lower costs than ten years ago.’ We agree with the GAO’s assessment that the price of voice, text and data are indicators of competition in today’s U.S. wireless industry.  

“The report also notes that rising penetration rates and a substantial increase in the number of wireless-only households means that ‘carriers are now mainly competing for existing subscribers.’ With more than 91 percent of Americans being able to choose from four or more carriers, competition for subscribers is fierce. Consumers have a number of choices in calling plans offered by a variety of carriers, ranging from prepaid to postpaid. If a consumer doesn’t like something about one provider, he or she has many others from which to choose. In fact, about 66 million Americans, or nearly 25 percent of all wireless consumers, took advantage of these competitive choices and changed carriers last year so they could get the newest innovative products and services and competitive rate plans.

“Wireless products and services are the future. But as the GAO noted, spectrum is ‘an essential input for wireless services.’ In order for the industry to continue to grow, innovate and deliver the cutting-edge technology consumers demand, all carriers must have access to additional spectrum. For this reason, it is imperative that Congress, the Administration and the Federal Communications Commission follow through on the National Broadband Plan’s recommendation to allocate an additional 500 megahertz of spectrum for commercial use within the next 10 years.”

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