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CTIA Position:
CTIA-The Wireless Association® believes Congress should pass legislation that reinforces the national, deregulatory framework Congress established in the 1993 Omnibus Budget Reconciliation Act.

Consumers will be best served if states are only allowed to take appropriate action relative to their laws of general applicability, and the FCC is solely responsible for regulating the wireless industry with regard to public health and safety, and consumer protection in the event of demonstrated market failure.

Key Points: 

  • State-By-State Regulation Increases Consumer Costs A patchwork of state-level regulations harms consumers because it eliminates the cost savings consumers would otherwise realize from the efficiencies of national marketing, customer care operations, billing platforms and other back office support to provide and bill for wireless services.
  • Consumers Should Rule the Market, Not Regulators and Legislators Consumers are the best judges of what works for them and what doesn’t, and they’re speaking loudly and clearly when it comes to wireless. Since Congress laid the groundwork in 1993 to create a competitive wireless industry, the number of wireless subscribers has leaped from about 16 million, to more than 215 million today! Consumers love wireless, and the industry continues to respond to this ever-growing demand.
  • Competition is Alive and Well in Wireless, and that Means Consumers are the Ultimate Winners The FCC recently reported that 97% of the U.S. population lives in counties with at least three service providers, up from 88% in 2000, and an average of nearly four carriers provide service in rural U.S. counties. Consumers are also getting a great deal these days. In 1993, the average wireless bill was $61.49 and customers used their devices an average of 140 minutes per month. In 2005, the average wireless bill of $49.98 was nearly 20% less, and the average minutes-of-use was 708 minutes, a more than 400% increase
  • Wireless is a Major Economic Driver and a National Framework Will Keep the Ball Rolling An economic study conducted by Ovum indicates approximately 3.6 million U.S. jobs were directly or indirectly dependent on the U.S. wireless industry, and that an additional 2-3 million jobs will be created in the next ten years. The same study shows the industry generated $118 billion in revenues in 2004 and contributed $92 billion to the U.S. Gross Domestic Product. It estimated over the next ten years the U.S. wireless industry will generate productivity gains of more than $600 billion from the deployment and use of wireless data services, and will add another $450 billion to the GDP through supply-side effects.
  • States can Enforce their Laws of General Applicability If a company is committing fraud on a consumer or acting with deceit, every State Attorney General has the power to take legal action against that company. The wireless industry fully supports this right and encourages states to exercise it.
  • Consumer Protection Regulation, if Necessary, Should Rest at the FCC In the event of market failure, the FCC should have the exclusive responsibility of adopting consumer protection regulations. The FCC is the most appropriate agency to do this because wireless is a national service and the Commission already licenses and regulates the industry.