Largent Expects Very Busy Year for CTIA

“[The note] said I recognized that a lot of people were very tired at the end of 2004 because we'd all been working very hard and wanted to congratulate them on the success and hard work they'd put in at the CTIA,” Largent said during a press lunch at CTIA hq: “The bad news was that it probably isn’t going to get any easier in 2005 and it could get a lot busier.” Largent added that he will be most worried at the end of the upcoming Congress especially if a major telecom act rewrite is in play.

Largent, a former member of Congress from Okla., also provided additional information on a “grassroots and a grass-tops organization” the CTIA board approved in Dec. that will spend tens of millions of dollars on a campaign to rally wireless users and industry employees to lobby the states, the FCC and Congress against regulation and taxation (CD Dec 15 p5). The organization that will oversee the program will be completely separate from CTIA, with its own board and budget, he said. Carriers will support the organization based in part on their numbers of subscribers, since dues are based on CTIA dues, which are tied to subscriber numbers.

“We haven’t modeled” the new lobbying organization after any other group, though it will be similar to outreach program on legal reform set up by the U.S. Chamber of Commerce, he said. A major target of the group will be fighting state regulation of wireless, which he described as “anathema to our industry, which limits what we believe is a potentially unlimited future.”

Largent also said he views the recent string of mergers as essentially good for consumers. “What’s important for consumers is to have competition within the wireless industry,” he said. “That’s not going away. Now we may not have as many carriers but the competition, I promise you, will be as intense as it has been.” On a question about declining subscriber growth industry wide Largent noted trends continue strong. “If we have to settle for 10% growth year after year of consumers in the industry then I guess I'll settle for that.” Largent also cited growth in services carriers are offering, including video services and high speed Internet: “There is a lot of room for growth. We haven’t begun to hit any kind of ceiling.” Largent indicated he was satisfied with the size of CTIA as an organization. “My goal is not to grow the trade association,” he said. “My goal here is not to build my own fiefdom or empire as a trade association leader… I'm not worried about what’s happening with our revenues.”

Intercarrier compensation (ICC) and USF reform, conventionally viewed as wireline issues, will likely be the most significant wireless issues in 2005, Diane Cornell, CTIA vp-regulatory policy, said elsewhere at the press conference. The FCC is expected to vote next month on an ICC rulemaking and accompanying order resolving a number of wireless issues (CD Jan 4 p1).

“The FCC is apparently preparing a broad notice of proposed rulemaking on intercarrier compensation and CTIA will certainly be active participants in that,” Cornell said. Cornell added that for both USF and ICC there appears to be a “bias built towards legacy networks,” mostly wireline. “We are worried that any changes not be biased in favor of any particular industry segment,” she said.

Bobby Franklin, CTIA vp-govt. affairs, said the wireless industry would try to build on its success from the end of 2004, where it helped convince Congress to pass the spectrum relocation trust fund bill (HR-1380), but didn’t cite any specific legislative proposals for which the association would lobby. Franklin said he anticipated there would be legislation to establish privacy standards for the planned wireless directory, as there was in the 108th Congress.

Franklin also said CTIA would be “very active” in the debate over reform to universal service fund and intercarrier compensation. CTIA officials said since wireless carriers pay into the USF system, and are hoping to get more funding from USF, it will be an important for CTIA to stay active in the debate.

State regulations, and the effect they have on wireless carriers, will be another important issue for CTIA, Franklin said. However, Franklin didn’t commit to any specific goals regarding state legislation. When asked if CTIA would pursue federal preemption of state regulations, Franklin only said he expected the “discussion on the role of states” to “gear up” this year. Franklin said he think discussions on a telecom rewrite act would begin in the House Commerce Committee with an “initial hearing,” while the Senate Commerce Committee plans to embark on a “listening tour” that would presumably feature telecom hearings in places other than Washington. A spokeswoman for Senate Commerce Committee Chmn. Stevens (R-Alaska) has said the Committee is still working out details on how it will conduct its hearings. - - Howard Buskirk, Terry Lane