Blog | News & Information on Wireless Services & Telecommunications
Posted: 01/31/12 by Jonathan Spalter
On Capitol Hill today lawmakers discussed the urgent need to address spectrum capacity to meet exploding consumer demand for wireless connectivity. And not a moment too soon. In today’s wireless market, data-intensive mobile devices are gobbling bandwidth at an astounding rate, literally sucking the oxygen out of the wireless ecosystem. In fact, the FCC’s own data shows the U.S. exhausting its current supply of mobile spectrum by 2013.
It’s critical that policymakers move immediately to sustain the pace of mobile innovation and investment in the United States. And one of the more immediate ways they can do is to move ahead now with voluntary spectrum auctions. Implementing a spectrum auction process that is open to all stakeholders will continue to fuel economic recovery and help ensure that consumers will have enough spectrum to meet exponentially growing demand in today’s competitive wireless market.
It is well documented that the expansion of licensed wireless broadband networks and services is driving economic growth, creating jobs, and enhancing productivity. In fact, a study released last week by economists Robert Shapiro and Kevin Hassett indicated the transition from 2G to 3G created almost 1.6 million jobs between April 2007 and June 2011, and the build out of 4G should add over 230,000 new U.S. jobs by the end of this year.
Now is the time for leadership. Policymakers on Capitol Hill, at the FCC and in the Administration must work together to chart a clear path to address the nation's immediate spectrum deficit. More than 300 million wireless consumers are waiting. And the clock is ticking.
Posted: 11/17/11
Read Mobile Future Chairman Jonathan Spalter’s column in The Wall Street Journal explaining why we need to repurpose broadcast spectrum to meet growing mobile demand here.
Posted: 11/01/11 by Mobile Future Team
Today, it was announced that Jessica Rosenworcel and Ajit Pai have been nominated to serve as FCC Commissioners.
Mobile Future Chairman Jonathan Spalter responded to the announcement, stating:
“We congratulate Jessica Rosenworcel and Ajit Pai on their nominations as FCC Commissioners and urge the Senate to quickly confirm their appointments. Given the potential wireless technology has for job growth and economic recovery, the FCC needs all hands on deck to address the pressing communication issues facing our country. We look forward to working with both Jessica and Ajit in their new roles.”
To read the full statement, click here.
Posted: 10/27/11 by Mobile Future Team
Today, the Federal Communications Commission approved a plan to modernize the universal service and inter-carrier compensation systems and transition Universal Service Fund support from voice service to broadband.
Mobile Future Chairman Jonathan Spalter commented on the plan, stating:
“We appreciate the FCC’s initiative to reform Universal Service and its clear recognition of the critical role mobile broadband plays in reaching the Commission's broadband deployment goals. We look forward to reviewing the details, but appreciate Chairman Genachowski’s leadership and the dedication of the other Commissioners to establish a sustainable framework that helps ensure access to broadband for citizens in all corners of the nation.”
To read the full statement, click here.
Posted: 10/19/11 by Mobile Future Team
Today, the Federal Communications Commission released a new infographic that outlines the need for more spectrum.
As the FCC stated in a press release:
“The infographic also illustrates the current mobile explosion and, consequently, the looming spectrum crunch whereby demand for spectrum is rapidly outstripping supply. Failure to free up more spectrum for mobile broadband will stifle innovation and result in higher prices for consumers and growing network congestion.”
To view the infographic and learn more, click here.
Posted: 07/29/11 by Mobile Future Team
Major telecom firms today jointly filed a proposal with the FCC outlining a framework to modernize and rationalize the universal service and intercarrier compensation systems. A key component of the plan is to transition Universal Service Fund support from voice service to broadband. Mobile Future Chairman Jonathan Spalter responded to the proposal, stating:
“We are encouraged by the progress being made to overhaul universal service and intercarrier compensation rules to redirect funds for national broadband deployment. A modern framework that supports robust networks in a targeted, cost-efficient and technology-agnostic way will benefit both consumers and the nation’s economy.
“We applaud this effort to build consensus across the broadband ecosystem around a solution that will ensure deployment extends into remote, unserved communities in a way that leverages mobile and other rapidly developing technologies. Meaningful reform will help achieve the objectives of the National Broadband Plan by helping guarantee all corners of the nation reap the benefits of broadband and our nation as a whole is positioned to compete and win in a connected world.”
To read the full statement, click here.
Posted: 07/15/11 by Jonathan Spalter
Official Washington already is slugging-it out in the inside-baseball of the next presidential election. But tech policy circles are pouring over the details of another closely watched horserace--the Federal Communications Commission's annual analysis of the competitive nature of the U.S. wireless market. With every manner of mobile device now bursting from our pockets and the airwaves awash in ads from a range of companies competing for our wireless dollars, the answer is fairly obvious. Nevertheless, the Commission this year provided a thoughtful and nuanced exploration of the many yardsticks that combine to deliver a thriving, innovative and competitive mobile marketplace.
The report comes not a moment too soon as both Congress and the White House take up the urgent need to make more spectrum available to support U.S. consumers' fast-expanding appetite for wireless connectivity. With spectrum legislation circulating in both the House and Senate, tomorrow in the latest in a series of hearings, the House Energy and Commerce Committee, will examine long-term spectrum solutions for our nation.
As it does so, the 300-plus page FCC report makes a powerful case for continuing the rapid progress of the mobile Internet--and the perils for policymakers who don't keep pace with their connected constituents.
Among the highlights:
- 9 out of 10 Americans Have Mobile Internet Choice. 92% of Americans have a choice of wireless broadband providers and 82% have at least three options for mobile Internet, according to the FCC report. And, we're choosing to connect. A majority of U.S. mobile device sales are now smartphones, and a recent analysis forecasts that our country will be the first where a majority of citizens own smartphones. We're at 38% today.
- Device Options Abound. Another key metric is the number of devices consumers have to choose from here in the U.S. In four years, the number of wireless handset makers in the U.S. market rose from 8 to 21, according to the FCC. In June 2010, just 10 device makers offered 144 smartphones, nearly triple the number available just one year before. Next up? All the tablets we're now adding into the mix. Already they're in 13% of American households.
- Rivalries Spark Vigorous CAPEX. Over the past five years, investment in U.S. wireless networks has held steady in the $20-$25 billion range annually--despite a challenging economy. This is a strong indicator that competitors are feeling the need for ever-stronger networks to keep and attract customers. Last December, according to the FCC report, MetroPCS became the first U.S. provider to launch an LTE network, followed by Verizon Wireless. AT&T has plans to launch this year. If the FCC is successful in making more spectrum available, this investment is likely to continue at a vigorous pace to the benefit of consumers and our recovering economy.
- A Crowded Field. Today, there are nearly 100 national, regional and niche wireless providers competing for U.S. customers, the report finds. And more choices are on the way. Last July, Harbinger Capital Partners announced plans to build an LTE network under the name LightSquared that could provide coverage to at least 100 million Americans by the end of 2012. By 2015, LightSquared hopes to provide coverage to at least 260 million, just behind Verizon, AT&T and Sprint-Nextel. Even with the AT&T-T-Mobile merger, Americans will have 5 national competing wireless providers to choose from, not to mention regional carriers throughout the country.
- Apps Competition Powers Growth. According to the FCC's report, U.S. consumers can now access nearly 1 million mobile apps from 26 competing app stores. In fact, Americans now spend more time using apps than surfing the Internet. A few years ago, the apps market didn't exist. By 2015, the "apps economy" is projected to generate $38 billion in sales, with real jobs and economic opportunities flowing primarily to the U.S.
Competition, choice, innovation and growth all rely on the same thing--more spectrum and more infrastructure. As Washington seeks to close the budget gap, the public revenues that would be generated by making more spectrum available to support mobile Internet expansion are a win-win for consumers and our economy, and for America's competitive position in the world. While consumers vote in the marketplace today--soon they will vote for the policymakers who have a big say in what the next chapter of mobile innovation will look like for our nation. Rest assured that connected consumers--90% of whom reportedly sleep with their mobile device--will vote early and vote often.
This article was originally published on Huffington Post.
Posted: 06/30/11 by Jonathan Spalter
In the nation's capital we are beginning to see movement on a critical issue for U.S. wireless consumers with a voracious appetite for innovative mobile services, products and devices -- initial steps to address the coming mobile capacity crunch.
As the mercury rises in the nation's capital, it's not just leaders from Capitol Hill to the White House to the Federal Communications Commission who are calling for timely action on the spectrum exhaustion our nation faces. A broad array of influential voices are now stepping forward to make clear the high and shared stake -- for our economy, consumers and American innovation -- of ensuring the wireless web can continue to keep pace with fast-expanding consumer demand.
Here are four key highlights for those keeping score at home:
Network engineers sound the alarm. According to a study by Rysavy Research commissioned by Mobile Future, "capacity will not be able, absent additional spectrum, to meet the data demands of consumers in three to four years if consumers use the applications they desire." The clock is ticking and much bolder moves are needed now by the government to help free up more spectrum for connected consumers. In my view, the AT&T-T-Mobile merger is an important step in easing the spectrum crunch through market-based mechanisms. That said, it's a dangerous myth to assume one business merger -- even one of this magnitude -- can "solve" the spectrum shortage.
Top U.S. tech companies back robust wireless networks. Three years ago, we'd never heard the word "app." Today, wireless consumers can choose from nearly 1 million of them--sold by 26 competing online stores. By 2015, the "apps economy" is forecast to climb to $38 billion. That's real jobs and economic opportunities flowing primarily to the U.S. No surprise then that leading U.S. tech companies, including Microsoft, Facebook and Yahoo, recently weighed in with the FCC that "an increasingly robust and efficient wireless network is part of a virtuous innovation cycle and a healthy wireless ecosystem is an important part of our global competitiveness."
Key technology investors urge timely fix. From helping grow the economy to keeping up with consumers and innovators, we must have reliable and fast mobile connectivity. That's why prominent venture capital firms also took the rare step of weighing in with the FCC, both in support of the merger and the broader spectrum effort. "The greatest opportunity for economic growth involves wireless broadband and mobile devices," they wrote. "But this great growth opportunity faces a major impediment with the looming prospect of 'spectrum exhaust.'"
Key groups link to digital divide. In his State of the Union address, President Obama called for 98 percent of Americans to have access to the mobile Internet within five years. That would be a significant milestone for our economy and for closing the digital divide. Mobile broadband opens doors for all Americans -- from helping a blind person walk down the street with voice-activated directions to assisting people living with chronic illnesses in managing their health. Too often overlooked in the debates, African Americans and Hispanics lead the nation in cell phone ownership and wireless Internet use, according to the Pew Internet and American Life Project. So important is the mobile Internet that 14 national Latino groups co-signed a letter stating that "this merger could provide opportunities to achieve many of these objectives by bringing the possibility of faster, smarter wireless networks to more Hispanics, further shrinking the digital divide."
Spectrum is a complex debate. Even more true, it's an essential one to get right today. Congress is starting to move on spectrum legislation, but the clock is ticking. Today, we see a rising tide of voices -- innovators, entrepreneurs, capital investors and community representatives -- joining the call for spectrum now. The question that remains is will Washington answer -- and do so in time to keep the mobile future bright, healthy and growing for us all.
Jonathan Spalter, chairman of Mobile Future, has been founding CEO of leading technology, media, and research companies, including Public Insight, Snocap, and Atmedica Worldwide. He served as an advisor to and spokesperson for Vice President Al Gore during the Clinton administration.
Mobile Future is a 501(c)(4) coalition comprised of and supported by technology businesses, non-profit organizations and individuals dedicated to advocating for an environment in which innovations in wireless technology and services are enabled and encouraged. For a full list of members and sponsors and to learn more about the coalition, go to www.mobilefuture.org.
Follow Jonathan Spalter on Twitter: http://www.twitter.com/mobilefuture
This article was originally published on Huffington Post.
Posted: 05/27/11 by Jonathan Spalter
Part of what makes America a global leader—from innovation, to our economy to our democracy—is the notion that we can always do better. It’s an important principle that keeps us on our toes and pushing the boundaries of progress. Currently in the world of mobile innovation, much attention is rightly focused on ensuring our nation keeps its competitive edge with the world—while reaping the many benefits of intensive wireless competition for consumers here at home.
From speculation about the Federal Communications Commission’s upcoming annual report on wireless competition, and the debates about the proposed purchase by AT&T of T-Mobile, we hear from many corners that our nation can do better. While I believe that is always the case, I fear that getting lost in the debate is the critical acknowledgement that our nation has the most competitive wireless market on earth. From innovative devices to exceptional value on our monthly bills to the boom in applications, our nation leads the world. And, while we push to make continued progress, it’s equally important that we stop and recognize the many things we’re already getting right.
In the early years of wireless, competition could be measured by a simple yardstick: How many carriers were in the market? That remains an important question, but many new ones deserve equal time. In today’s rich, diverse, and ever innovating mobile ecosystem, the benchmarks are far more complex and rapidly shifting. From applications and devices to new business models and market players, assessing the rapidly expanding mobile marketplace is a far more complex endeavor.
As important competition debates get underway, here are six things to consider:
1) 5+ National Carriers. Let’s start with the old stand-by—number of carriers—and face the elephant in the room: Even with an AT&T-T-Mobile merger, the vast majority of Americans will have no less than 5 national carriers to choose from—before you even get to the nimble regional players who are establishing a strong foothold in key markets today.
2) The Price is Right. Think about how you use your mobile device today versus just three years ago. U.S. consumers enjoy the lowest wireless per-minute voice prices in the world and have options to add data for as little as $15 a month. It all adds up to real value.
3) Diverse devices, diverse choices. Americans can choose from more than 630 devices supplied by at least 32 manufacturers... and counting. Our mobile hungry public is a magnet for intense competition in this segment of the marketplace, as well. The latest evidence? The early success of the iPad proved the viability and size of the fast-emerging tablet market and—thanks to competition—many other market players are joining the fray, including Samsung, Blackberry, Motorola and other tech heavyweights.
4) Apps Abound. It began with the introduction of Apple’s app store in 2008. Today, U.S. wireless customers can access nearly 1 million mobile applications from 26 competing apps stores. This marketplace has seen astronomical growth -- more than 10 billion app downloads from the Apple store alone by last count -- and is just getting started. By 2015, the “apps economy” is projected to generate $38 billion in sales—those are real jobs and economic opportunities flowing primarily to the U.S.
5) New Entrants, New Rivalries. With the current environment of constant innovation, new and serious competitors are emerging. Many in the tech world are closely watching Microsoft’s purchase of Skype. Is the Redmond company on the fast track to becoming the next major wireless provider? Will this new combination catalyze the nascent video chat market? Another potential disruptor is the recent claim of Google’s Eric Schmidt that the company’s Android phone wallet “could replace your credit card.” The mobile payment market barely exists in the U.S. today, but it is likely to take shape quickly and have far-reaching implications throughout the mobile ecosystem.
6) Customer Satisfaction. And let’s not forget what consumers themselves have to say about their mobile experience: 92% of U.S. wireless customers tell the FCC they are satisfied with their mobile service. Those are boffo numbers for any heavily used retail offering and a strong indication that value, innovation and choice abound.
Americans get an incredible amount of value and innovation from their mobile experience. And, in no small measure, credit is due to policymakers who for the past couple of decades have gotten it right by taking a light-touch approach to regulation. Their vigilance today is admirable—and appropriate. But it doesn’t change the fact that American mobile innovation remains the envy of the world and there’s no reason to believe consumers won’t continue to enjoy these mobile benefits and opportunities going forward. Without a doubt, we must stay on our toes to continue the success story, to continue to innovate, and to continue to stay competitive globally. But key to maintaining our edge is recognizing the extraordinary competition that has carved it so sharply to date.
Jonathan Spalter, chairman of Mobile Future, has been founding CEO of leading technology, media, and research companies, including Public Insight, Snocap, and Atmedica Worldwide. He served as an advisor to and spokesperson for Vice President Al Gore during the Clinton administration.
Mobile Future is a 501(c)(4) coalition comprised of and supported by technology businesses, non-profit organizations and individuals dedicated to advocating for an environment in which innovations in wireless technology and services are enabled and encouraged. For a full list of members and sponsors and to learn more about the coalition, go to www.mobilefuture.org.
Follow Jonathan Spalter on Twitter: www.twitter.com/mobilefuture
This article was originally published on Huffington Post.
Posted: 05/11/11 by Mobile Future Team
On Tuesday, the FCC announced a new alert network which will notify citizens of local emergency situations via mobile phones. The Personal Localized Alerting Network (PLAN) will send text messages to citizens alerting them of natural disasters like hurricanes, tornadoes or floods and even of terrorist threats.
As reported in USA Today, FCC Chairman Julius Genachowski explained:
"The traditional alerts on radio and TV are still important, and they will continue, but more and more, mobile devices are becoming essential. You have them with you. In the event of a major disaster, government authorities can get lifesaving information to you quickly."
To learn more, click here.
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Tags: Consumer Awareness, Consumer Benefits, FCC, Innovation, Mobile Future, Mobile Future Board, Jonathan Spalter, News, Spectrum, Wireless Innovation, Looming Spectrum Crisis