Let's Talk National Framework

  Earlier this week (February 27) CTIA-The Wireless Association President and CEO Steve Largent returned to Capitol Hill to share the industry's position on a topic of high interest to the industry and one that is critically important to U.S. wireless consumers. The venue was a hearing before Chairman Ed Markey's Telecommunications and Internet Subcommittee, and the association president was asked to appear regarding draft wireless legislation that focused on the best regulatory regime for the wireless industry. 

   The hearing provided Steve, who is a former member of the House of Representatives from Oklahoma, with the opportunity to talk about a lot of the benefits the industry has provided consumers as a result of the 1993 Omnibus Budget Reconciliation Act that established a national framework for wireless regulation. Where do you want to begin? How about minutes-of-use? Since December, 1997 until the present, the average minutes-of-use (MOU in industry-speak) have increased six times, from about 120 minutes a month back in '97, to nearly 750 minutes a month/per U.S. subscriber today. All right, so we're using wireless a lot more. What's the benefit to that? Well, look at the cost per voice minute. In that same period of time, the Bureau of Labor Statistics shows that the price of commercial wireless service has dropped by 35%. So, we're all paying 35% less today than we did about ten years ago, while our monthly average minutes-of-use have gone up about 600%. I think it's also important to note that American wireless subscribers pay less per minute for their service than those in nearly every other developed country in the world. That is a bargain that is very hard to argue with.

   What about economic impact? Positive economic drivers are more important now than ever in our country, and the wireless industry is an emerging leader in that respect. The industry has directly or indirectly created nearly four million jobs in the U.S., and in 2004 contributed $92 billion to the U.S. Gross Domestic Product. At that time,  an additional 2 to 3 million jobs, and another $450 billion in GDP from the industry were forecasted over the next decade, although revisions will quite likely be higher.

    So, we think we have a great story to tell, and we believe it's a good sign that Chairman Markey is engaged in this important area for wireless consumers. A complete and uniform set of national standards for wireless service in America makes sense, and will provide the best platform to continue providing consumers with cutting-edge wireless products and services.