Wireless Makes the World a Better Place
FCC Chairman Julius Genachowski addressed the annual International CTIA Wireless convention in New Orleans on May 8, 2012, where he opened his prepared remarks with a yarn about how the new FCC commissioners were nominated by President Truman. Humor aside, Genachowski made some interesting comments about the state of the wireless industry and CTIA member companies’ various innovations and initiatives. Some of the challenges that Genachowski applauded the wireless industry for tackling include: combating cell phone theft, curbing bill shock, deploying next generation 911 service, and enhancing cybersecurity. “On a series of important matters, working together, we’ve been able to develop real solutions to real problems. This is good for American consumers and good for the wireless industry,” said Genachowski.
Genachowski further expressed awe about milestones reached by the wireless industry, like “more people now have mobile phones than electricity or running water,” and “Smartphone sales now exceed PC sales.” Altogether, “The implications of the mobile revolution for our economy and our quality of life are profound.” As per usual, Genachowski highlighted the number of jobs allegedly created by the wireless industry (1.6m, including 500,000 in the app industry), and the benefits of wireless for education, public safety, and the economy.
The “Internet of Things” is all the rage in the wireless industry right now, especially following AT&T’s big announcement yesterday about AT&T Digital Life, a remote home monitoring and automation portfolio. Genachowski commented, “The Internet of Things has the ability to enable remote health monitoring, smart energy grids and smart, secure homes; to foster more efficient transportation networks, water systems, and logistical support for businesses.” He added, “This isn’t science fiction.” Genachowski noted that the U.S. is leading the global wireless revolution, and “Mobile broadband is changing the world for the better.” However, the wireless industry shouldn’t get too complacent at the top—Genachowski cautioned that the industry must still innovate and invest “in hardware, in software, in air interfaces, in business models, everywhere.”
Perhaps the most provocative statements by Genachowski at CTIA were directed towards AT&T in response to recent claims by AT&T that by not merging with T-Mobile, customers will suffer from higher prices and the industry will suffer from a spectrum shortage. Genachowski said “Some have recently argued that the government’s review of transactions in the wireless space—or, let’s be frank, review of one specific transaction—is somehow causing a shortage of spectrum and leading that company to raise prices for consumers.”
Not true, according to Genachowski: “the overall amount of spectrum available has not changed, except for the steps we’re taking to add new spectrum to the market.” Furthermore, “At its core, the argument—that competition is bad for consumers—is at odds with basic free-market principles.” He elaborated, “The notion that competition drives spectrum inefficiency is at odds with our history with mobile, which demonstrates that competition drives investment in efficiency-enhancing technologies and the evolution of business models to the benefit of consumers and providers alike.” All in all, Genachowski sticks to his convictions about the AT&T/T-Mobile merger, and asserts that this merger “crossed a line.”
Looking to the not-so-distant future, Genachowski hopes to see experimentation in pricing and business models, “accelerated upgrades of network architecture,” small cell and smart antenna advancement, and re-purposing of older wireless technologies to LTE. Genachowski then described the FCC’s Mobile Action Plan, which “goes well beyond incentive auctions,” but seemed rather vague overall with references to “opportunities,” “toolkits,” and “charting the next frontiers of wireless policy.”
After running through a long list of things the FCC is doing to help promote wireless investment and innovation, Genachowski eventually mentioned the Universal Service Fund reforms, where “This was the first time the U.S. recognized mobile services as an independent universal service objective.” He explained that Phase I of the Mobility Fund is fast approaching, and “a number of wireless providers across the country are making great progress extending 4G to rural communities, including through partnerships and sharing arrangements.”
Genachowski wrapped up his 14-page prepared statement by saying “the best is yet to come,” and “Working together, we can seize the opportunities of the mobile revolution and build a brighter future.” If Genachowski’s speech tells us anything, it is that this is an exciting time to be in the wireless industry.
Thursday, January 30, 2014 at 4:13PM 