& 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
From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
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.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom on what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
LRTV Custom TV
Nokia Introduces Virtual Service Router for More Rapid Service

4|6|17   |     |   (0) comments


James Cumming, product line manager for virtualized service routers at Nokia, demonstrates how the virtual router based off the Nokia ecosystem changes the network function experience.
LRTV Custom TV
The Keys to SD-WAN Success

4|6|17   |     |   (0) comments


Versa Networks CEO Kelly Ahuja talks about the key requirements for service provider-managed SD-WANs.
LRTV Custom TV
Intel & Cisco on Joint 5G Solutions

4|5|17   |     |   (0) comments


Dave Ward, SVP and CTO of Cisco, is joined by Sandra Rivera, corporate VP and general manager of network platforms group of Intel, on the revolutionary 5G technology that changes networking and computing fundamentally.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Time for a Telecom Reboot
Steve Saunders, CEO and founder, Light Reading, 4/19/2017
Comcast Ready for Clash With Hulu
Mari Silbey, Senior Editor, Cable/Video, 4/18/2017
Unlicensed: It's What's Next for US Mobile Operators
Dan Jones, Mobile Editor, 4/19/2017
Verizon's Fiber Spend Won't End With Corning
Mari Silbey, Senior Editor, Cable/Video, 4/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
Now That's an Ad Campaign Click Here
Meerkats to the rescue!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.