& cplSiteName &

Carriers Respond to FCC's Competition Concerns

Sarah Thomas
5/21/2010
50%
50%

It wasn't what the Federal Communications Commission (FCC) 's massive annual report on the state of the wireless industry said that has wireless operators up in arms; it's what it didn't say. The 308-page report heralded the successes of the industry, but for the first time, did not conclude that it is competitive.

To support its omission, the FCC pointed out that since 2003, market concentration has increased by 32 percent. It never came out and called the market uncompetitive, but focused instead on the fact that 60 percent of the nation's subscribers and revenue come from AT&T Inc. (NYSE: T) and Verizon Wireless . They continue to gain subscribers, while Sprint Corp. (NYSE: S) and T-Mobile US Inc. continue to bleed them. (See T-Mobile Hangs Growth Hopes on HSPA+ in US, Sprint Pins Hopes on WiMax Phone, AT&T Stays Mum on Tiered Mobile Data Pricing, and Verizon Reports Q1.)

The report included a number of interesting charts depicting various aspects of the wireless industry and competition, but also demonstrated there's a number of ways to define competition.



For that reason, the FCC was careful to just present the data and break down the different wireless service inputs, including spectrum, backhaul, handsets and mobile applications, but the wireless operators were equally as careful to quickly present their own definitions of competition.

Wireless industry wards off regulation
CTIA president and CEO Steve Largent sided with AT&T and Verizon, highlighting the industry's investments as evidence of competition. This included the $44 billion that the US wireless industry invested in networks and spectrum in 2008, which, Largent said, was significantly more than Germany, France, Italy, Spain, and the UK combined invested.

"We are very concerned, however, about the potential misuse of 'policy levers' that are referenced in the Report and believe that any attempt to add regulation to wireless as a result of this Report would be both misguided and harmful to consumers," Largent wrote on the CTIA blog.

Both Kathleen Grillo, Verizon senior vice president of federal regulatory affairs, and Robert Quinn, AT&T senior vice president of regulatory affairs, pointed out that the FCC has agreed with them for the past six reports and that reports of consumer satisfaction back up the competitiveness in the market. They also cited innovation in smartphones and applications as evidence of a competitive market. Quinn called the report "disappointing" and even "baffling" for contradicting its own evidence that the market is "working, delivering choices and value."

"For six successive reports, the FCC has confirmed what is obvious to any consumer who watches television, walks down a busy main street or reads a newspaper -- that the wireless market is intensely competitive, with new choices in services, applications, and devices available almost weekly," Quinn wrote.

Sprint was the only one that deviated from its larger competitors, applauding the FCC's recognition of the competitive environment. A spokesman defended Sprint's stance in his blog, cautioning that "you need to remember who owns Verizon Wireless and AT&T Mobility -- landline companies who benefit greatly from the current regulatory system."

A T-Mobile spokeswoman only deferred to the CTIA's canned comments on the matter.

Is regulation imminent?
The FCC has taken a more active interest in the wireless industry than past bodies that just rubber-stamped completion, says Craig Settles, CEO of broadband consultancy Successful.com. Chairman Julius Genachowski has been pushing for net neutrality regulation, which he believes should encompass wireless. (See FCC Chairman Defends Calls for Net Neutrality.)

The industry, meanwhile, continues to fight back against this, claiming that spectrum limitations exempt them from the rules of wired networks. As is clear in their rebuttals and definitions of competition, AT&T and Verizon fear they will be denied access to the multi-billion dollar spectrum auction planned for the end of next year. (See FCC Opens Up 25MHz in 2.3GHz Band.)

"If there wasn't the threat of net neutrality, this report would not raise as much concern and consternation in the industry as it has," Settles says. "But, because they know net neutrality is on the horizon -- they know there's a bunch of ticked-off customers driving this move toward net neutrality -- they are going into spasms. They view this thing as, if there's not competition, they will be regulated. That's straight direct line in their mind eyes, so they put forth all these talking points."

[Ed. note: This article is part one of a two-part series. Coming next: "Defining 'Competition.'"]

— Sarah Reedy, Senior Reporter, Light Reading Mobile

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Educational Resources
sponsor supplied content
Educational Resources Archive
Light Readingís Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
LIVE NOW!
Friday, December 2, 1:00PM EST
The SDN Approach to IP & Optical Integration
Sterling Perrin, Senior Analyst, Heavy Reading
UPCOMING COURSE SCHEDULE
Friday, December 2, 1:00PM EST
The SDN Approach to IP & Optical Integration
Sterling Perrin, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (1) comment


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
LRTV Custom TV
Tackling 5G in Dallas

11|28|16   |     |   (0) comments


Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
LRTV Interviews
Cox Prepping for Virtualization Trials

11|14|16   |     |   (0) comments


In this video interview, Cox's Jeff Finkelstein discusses MSO's plans to test managed business services in early 2017 and tackle Distributed Access Architectures.
LRTV Custom TV
Drivers & Potential of NGP

11|11|16   |     |   (0) comments


ETSI has created an Industry Specification Group to work on Next Generation Protocols (NGP ISG), looking at evolving communications and networking protocols to provide the scale, security, mobility and ease of deployment required for the connected society of the 21st century. The NGP ISG will identify the requirements for next generation protocols and network ...
LRTV Custom TV
Huawei IP 2020 for Future Networks

11|11|16   |     |   (0) comments


Future Networks should satisfy many requirements such as high throughput, extremely low latency, flexible mobility, intrinsic security, networking automation, and so forth. The Chief Architect of Huawei Future Networks addresses a holistic solution, i.e., IP 2020, to achieve these requirements for various future life scenarios (e.g., autonomous driving, tactile ...
LRTV Custom TV
Digital Object Architecture

11|11|16   |     |   (0) comments


Digital Object Architecture provides a basic information infrastructure that can facilitate interoperability between or among different systems, processes, and other information resources, including different identity management systems. Digital objects are networked objects that are named by digital object identifiers and instantiated by an infrastructure service ...
LRTV Custom TV
BT's Openreach Has High Hopes for Long-Reach VDSL

11|11|16   |   06:04   |   (0) comments


Peter Bell, Network Portfolio CIO at BT's access business Openreach, talks about the operator's trial of a new broadband access technology called Long Reach VDSL.
Upcoming Live Events
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
AT&T Debuts DirecTV Now on New Video Platform
Mari Silbey, Senior Editor, Cable/Video, 11/28/2016
Apple Seeds 5G? Seeks 'Multi-Gigabit' Chip Designer
Dan Jones, Mobile Editor, 11/30/2016
Altice Plans FTTH for Entire US Footprint
Iain Morris, News Editor, 11/30/2016
Altice FTTH Bill Could Hit Almost $9.6B in US
Iain Morris, News Editor, 12/1/2016
Samsung Bows to Investors, Considers Revamp
Iain Morris, News Editor, 11/29/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.