Transcript Wireless is a Competitor in the Broadband Marketplace

National Spectrum Managers Association
Industry Round Table
Christopher Guttman-McCabe
Vice President, Regulatory Affairs
CTIA – The Wireless Association®
May 22, 2007
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233 Million U.S. Wireless Subscribers at Year-End 2006
Dec-06
Dec-05
Dec-04
Dec-03
Dec-02
Dec-01
Dec-00
Dec-99
Dec-98
Dec-97
Dec-96
Dec-95
Dec-94
Dec-93
2,069,441
3,508,944
5,283,055
7,557,148
Dec-87
Dec-88
Dec-89
Dec-90
Dec-91
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233,040,781
182,140,362
200,000,000
158,721,981
140,766,842
128,374,512
86,047,003
100,000,000
69,209,321
55,312,293
44,042,992
33,758,661
24,134,421
16,009,461
1,230,855
Dec-86
Dec-92
681,825
Dec-85
0
340,213
Source: CTIA Semi-Annual Wireless Survey
11,032,753
50,000,000
109,478,031
150,000,000
207,896,198
250,000,000
More Minutes of Use Overall – 1.8 Trillion in 2006
2,000,000,000,000
1,600,000,000,000
1,200,000,000,000
800,000,000,000
400,000,000,000
0
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
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Source: CTIA Semi-Annual Wireless Survey
2006
Multiple Wireless Licensees Compete Nationwide
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Source: FCC 11th CMRS Competition Report
Summarizing Growth and Innovation Over the Years
1993
2006
 Service on local/regional analog networks

98%+ digital nationwide networks
 11 billion MOU*

1.8 trillion MOU in 2006
 Data Rates of 4.8 kbps

Avg. Data Rates up to 500 kbps
 Contribution to the economy

Contribution to the economy
 Revenues of $8 billion annually

Revenues of $125 billion annually
 31,000 employees

253,000 employees
 $12.75 billion cumulative capital
investment
 $223 billion cumulative capital
investment
 Average monthly bill – $67.31
 Local, long distance, roaming
charges
 Landline surcharge
* Minutes of use
Source: CTIA Research

In 1993 dollars, average monthly bill
$35.34
 Nationwide coverage – plans with
no roaming charges

No long distance charges

Subscribers’ phones on 24/7
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High-Speed Line Growth
High Speed Net Adds by
Type, Dec. 2005 – June 2006
• In 1H06, total high-speed lines grew 26%,
from 51.2 million to 64.6 million lines, and
59% of all adds were mobile wireless
subscriptions.
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• From June 2005 to June 2006:
– Cable modem’s share fell from 56% to
44%.
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Millions
– ADSL’s share of total broadband lines
fell from 38% to 35%,
7.9
8
5
4
3.1
– Mobile wireless’ share of total
broadband lines rose from 1% to 17%
of total broadband lines.
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– The share of “other” forms of
broadband (including fixed wireless,
satellite, fiber, and broadband over
power line) remained at 4% of total
broadband lines – although their total
line count grew 39%.
1
2.0
2
0.5
0
ADSL
Cable
Other Wireless
Modem Broadband
Sources: FCC Report on “High-Speed Services for Internet Access,”
Jan. 2007.
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Evolution of Wireless Technologies
2G
3G
4G
CDMA
1X RTT
EV-DO
Rev. 0
EV-DO
Rev. A
UMB
GSM
EDGE
HSDPA
HSPA+
LTE
Other
Technologies
Availability:
Benefits:
New Entrants
Now
WiMAX
(802.16e)
Now through Mid-2007
OFDM
MIMO
2009
Higher Speeds, Lower Costs, Greater Efficiencies
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Wireless “3G” Network Deployment
• Alltel: AxcessSM Broadband service (EVDO) offers speeds of 400700 kbps (more than 100 cities, 44 million pops).
• Cingular/AT&T Wireless: BroadbandConnect (HSDPA) service
offers speeds of 400-700 kbps (165 cities, including 73 of the top 100
markets).
• Sprint Nextel: EVDO service offers speeds of 400-700 kbps (covers
more than 200 million pops now, rising to 280 million by YE2008).
EVDO Rev A network now covers more than 95 million people, and
expansion of network upgrade continues. Rev A offers upload speeds
of 350-500 kbps, and download speeds up to 600 kbps-1.4 Mbps.
• T-Mobile USA: Offers mobile Internet access through its
GPRS/EDGE network, with a typical EDGE download speed of 100
kbps, and operates a network of more than 8,000 wireless hotspots;
T-Mobile's HSDPA network is currently in deployment.
• Verizon Wireless: EVDO-based broadband service offers speeds of
400-700 kbps (242 cities, 200 million pops). Verizon is upgrading to
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EVDO Rev. A.
Wireless licensees are deploying “4G” networks
• Sprint Nextel will deploy a 4G broadband network, using mobile
WiMAX technology with data rates of 2 to 4 Mbps.
Sprint Nextel intends to launch a mobile WiMAX broadband service
capable of serving 100 million people by year-end 2008, using the
2.5 GHz band. Trial markets to be launched later this year include
Washington, DC, Baltimore and Chicago.
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Key Wireless Spectrum Issues
• Additional Spectrum Needs
• AWS-1 Auction
• 700 MHz Auction
• Analog Transmission Sunset
• Illegal Repeaters/Jammers
• Skype/Carterfone
• PCS H-Block (1915-1920/1995-2000 MHz)
• PCS J-Block (2020-2025/2175-2180 MHz)
• 2155-2175 MHz
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Additional Spectrum Needs
• Industry continues to serve our more than 230 million
subscribers on less than 200 MHz of spectrum – AWS auction
just completed.
• The Advanced Wireless Service auctions – including the 700
MHz auctions – are the key to the continued success of the
U.S. mobile wireless industry.
• U.S. mobile wireless industry is working to deploy mobile
wireless broadband services that have the potential to break
the cable modem and DSL duopoly.
• The spectrum that is in the pipeline over the next two years will
begin to put the United States on par with the rest of the world
in terms of spectrum allocated for commercial mobile wireless
uses.
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AWS-1 Auction
• Nearly $14 billion raised through the auction of 1,087 licenses
to 104 licensees.
• The auction effectively created three new nationwide licensees
- Leap Wireless, MetroPCS, and SpectrumCo.
• Existing carriers gained valuable spectrum to continue
expanding their service offerings.
• Clearing issues – both commercial and government agency –
still remain.
– 1710-1755 MHz (government clearing); CTIA is facilitating meetings
between new licensees and incumbents in the 1.7 GHz band.
– 2110-2155 MHz (commercial clearing); CTIA is a clearinghouse for the AWS
spectrum and coordinates relocation reimbursements in the 2.1 GHz band.
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700 MHz Auction
• Pursuant to the DTV transition, this valuable portion of the
spectrum is scheduled to be licensed for commercial use.
• Key issues:
– The spectrum must be brought to auction by the statutory deadline of
January 2008.
– The auction must be free and open to all eligible bidders and should not
limit the pool of eligible bidders to the detriment of consumers.
– Open access and Net Neutrality obligations on the spectrum must be
avoided to allow the spectrum to be used to its fullest potential.
– Buildout obligations should be population-based.
– The proposal by Frontline Wireless to burden a block of spectrum with a
number of public policy obligations should not be allowed to devalue the
700 MHz spectrum.
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Additional Sources of Spectrum
• PCS H-Block (1915-1920/1995-2000 MHz)
• PCS J-Block (2020-2025/2175-2180 MHz)
• 2155-2175 MHz
– M2Z Networks proposal for a spectrum give-away in this band was rightly
denied by the Commission.
– This spectrum should be auctioned to the highest bidder as they are most
likely to put the spectrum to its highest and best use.
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Current Spectrum Issues
• Analog Transmission Sunset
– The Commission must maintain the analog transmission sunset date in the
face of the alarm industry’s request for an extension.
– Spectrum efficiency suffers on networks of carriers forced to maintain
analog capacity. Most carriers have fewer than 1% of their subscribers
using analog equipment.
– Some carriers are spending as much as $15,000 per subscriber per year to
maintain analog capacity.
• Illegal Repeaters/Jammers
– Use of illegal repeaters and jammers by consumers causes interference to
other handsets in the vicinity of the illegal equipment as well as the carriers
network.
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Current Spectrum Issues
• Skype/Carterfone
– Carriers need to be able to control the spectral environment for their
network in order to maximize efficiency.
– Proposals for technical standards and open access to carriers air interfaces
will freeze innovation in spectral use and ultimately prevent the considerable
gains in efficiency that are realized with each successive wireless standard.
– Wireless handsets are a crucial part of the spectral environment and as
such must be carefully managed by carriers.
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