Wireless industry defends itself against mounting criticism

24.08.2009
Facing an unprecedented onslaught of criticism of its pricing practices, exclusive handset deals and other moves, the wireless industry is gearing up to defend itself in hearings before the Federal Communications Commission (FCC) and other government groups.

"The wireless industry in the U.S. has the coolest handsets, the applications are more robust, and the networks have the highest speeds with the lowest pricing," said Christopher Guttman-McCabe, vice president of regulatory affairs at the CTIA in an interview today. "Can things get better? Yes. But things will get better."

The CTIA, an association of carriers, handset makers and a growing number of wireless ecosystem players like Google Inc., says it is a bit confused by the heaped upon the industry in recent weeks. Critics have leveled a variety of complaints ranging from what they contend is a lack of wireless innovation to overcharging for monthly services, Guttman-McCabe said.

"I think it's extremely hard to understand the criticism we're hearing," Guttman-McCabe said. "People pay ... a hell of a lot less than they paid [for wireless services] 15 years ago, and think of what you get now that you couldn't get then."

The CTIA is planning to carefully watch the FCC's meeting on Thursday to consider whether to conduct three probes, or "inquiries," into the wireless industry. The decide whether it will work to find ways to encourage wireless vendors to be more innovative, competitive and open in providing information to consumers looking to buy wireless services.

Guttman-McCabe said CTIA expects the FCC to go forward with the inquiries, which will provide the industry with an opportunity to defend itself against the criticism. The CTIA won't testify or file written comments on Thursday, but it does expect to be given an opportunity to respond later, he said.