FCC Again Declines to Find Wireless Industry Is Effectively Competitive
The FCC released the latest version of its annual mobile competition report, a 127-page snapshot of competition in the industry at the end of 2015, concluding the mobile industry remains uncompetitive. Since 2010 and the first wireless competition report of the Obama presidency, the FCC has declined to draw the conclusion that mobile is competitive, in the required annual report to Congress (see 1005210135). But the FCC did find signs that coverage and speeds are increasing. The annual report is the 19th prepared by the FCC.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Among key findings is that wireless subscriptions increased by 17 million from year-end 2014 to year-end 2015, based on FCC numbering resource utilization and forecast calculations, and by 22 million based on reports by CTIA. The FCC cited UBS data as showing an estimated 397 million connections in 2015. The four national carriers, Verizon, AT&T, T-Mobile and Sprint, have seen a steady increase in data speeds, the FCC said.
The agency said Sprint and T-Mobile are filling in LTE coverage gaps. None of the four national carriers “covers the entire land area or population of the United States” but “each has a network that covers a significant portion of both,” the FCC said. The report classifies U.S. Cellular, C Spire and nTelos as “multi-regional” carriers.
The FCC also said 99.7 percent of the U.S. population has access to one or more LTE providers, 98.8 percent to two or more, 95.9 percent to three or more and 89.1 percent to four or more. The numbers are up from the previous report, which said 91.5 percent had access to three or more LTE providers and 82.2 percent to four or more. It said 47.7 percent of Americans lived in wireless-only households at the end of 2015, compared with 27.8 percent five years earlier.
“Mobile wireless services are an essential and ubiquitous part of Americans’ daily lives,” the report said. “Preserving and promoting competition in the provision of mobile wireless services is central to the Commission’s mission and is critical for driving innovation and investment to the ultimate benefit of the American people and economy.”
“The FCC has amassed an impressive array of facts demonstrating once again the vibrant competition that has taken hold in the wireless market,” emailed Scott Bergmann, CTIA vice president-regulatory affairs. “As the report makes plain, consumers today enjoy unparalleled choice among wireless providers, service plans, and devices, all while the wireless industry continues to invest in networks at extraordinary levels to facilitate greater access to 4G LTE and foster the next generation of innovations.”
The FCC is right not to find effective competition in the wireless industry, said Competitive Carriers Association President Steve Berry in a news release. The commission needs to move forward on a number of changes, Berry said. The agency needs to “prioritize access to critical spectrum resources,” including unlicensed and high-frequency spectrum, complete USF “reform” and approve a new mobility fund, “fix the broken Business Data Services market; institute clear siting policies and access to content regimes; and facilitate competitive roaming arrangements,” Berry said. FCC Chairman Tom Wheeler touched on all of those issues in a speech to CCA Tuesday (see 1609200058).