WASHINGTON-The Personal Communications Industry Association launched its “Agenda for a Wireless America” aimed at urging regulators and legislators at the local, county, state and federal levels to focus their efforts on smoothing the industry’s path toward full competition.
The program, unveiled Feb. 10 by PCIA President Jay Kitchen, is based on six points that need to be addressed by lawmakers to ensure that wireless communications moves forward as a viable alternative to traditional wireline services. “Local telephony competition is in trouble,” he said. “Across the country, decision makers and consumers are becoming increasingly frustrated with the slow pace of developing alternatives to the incumbent local service providers. Why is competition in trouble? Because it is extremely expensive to build redundant wireline networks and, in many areas, the current wireline service already is priced at or below cost.”
PCIA contends that wireline operators will continue to concentrate on serving urban areas rather than footing the bill-even with universal-service subsidies-to build out into unserved or underserved areas, areas that could be operated easily by a wireless local loop provider.
“We can’t look at issues on a case-by-case basis anymore,” Kitchen said. “This is not a simple proposition; it is a long-term campaign to make the wireless local loop as common as the embedded infrastructure of today.”
PCIA’s six talking points-wireless tax reform, fair interconnection, infrastructure development, long-term spectrum planning, network coordination and international opportunities-were developed because “the industry is at a crossroads,” according to Kitchen, and issues need to be decided as a group. Also, the industry now is ready to make a commitment to building out a truly wireless America, and PCIA itself plans to pledge manpower to accomplish the agenda’s goals, including hiring a “well-known” economist to produce a white paper on wireless tax issues scheduled to release on or about April 15.
Regarding that tax relief, Kitchen explained that universal service and other fees are hampering competition, and that Washington, D.C., and the states “have targeted wireless with overly burdensome assessments that can add 40 to 50 percent to consumer costs. We are conducting research on the corrosive impact of this.” Kitchen pointed to recent developments in Singapore, where the government has lessened the tax burden on wireless carriers in order to allow them to build out their networks. Only after they are up and running would they be subject to new regulatory fees.
Kitchen wants relief from universal-service fees, and he fears that if more responsibility for that fund is shifted to the federal government from the states, fees will rise.
Interconnection policy also must be revamped, Kitchen said, because “true and fair” interconnection is “the cornerstone of competition.” Even though the FCC reiterated its reciprocal compensation position last December, thus giving a boost to wireless carriers that are having trouble with local exchange carriers on that count, the issue still remains to be solved in many states. PCIA also plans to ask the FCC to exert its authority over the pricing of WLL.
“We’ve only seen the tip of the iceberg on what needs to be changed about interconnection,” commented Alan Ciamporcero, PCIA’s senior vice president of government relations. “As society and technology changes, it will cause ripples in how hardware, software and agreements work. We want to make sure the FCC sees interconnection as a long-term priority.”
There are win/win solutions to be had in the infrastructure-development arena, and PCIA’s site search clearinghouse has been working with local governments to make sure their needs and those of the industry can be met “in a reasonable manner.” Network coordination, a related issue, still has many hurdles to overcome, especially regarding interoperability. Numbering is one such issue, and PCIA said it is working on plans that include pooling, portability and code overlays.
To reach the goal of parity with wireline networks in 10 or 20 years, long-term spectrum planning that includes high-speed data, Internet access, full-motion video and other enhanced services is necessary to move forward in a competitive atmosphere, Kitchen said. “To do that, PCIA is leading the charge for rational spectrum planning at the FCC, in Congress, at WRC ’99,” he added. “We must prepare now to ensure that third-generation, and then fourth-generation technologies can be delivered to the market without delays.”
Finally, PCIA wants the industry to promote increased international opportunities in order to leapfrog wireline technology in emerging and transitional countries. “We need to continue to develop partnerships, and American trade agreements must be favorable to the export of high tech. PCIA will be working with Congress as it considers trade legislation and fast-track authority.” In addition, U.S. carriers, especially those offering personal communications services, need to think about getting in sync with the rest of the world to make this aspect of wireless truly global.
“We are anxious to see the World Trade Organization agreements go into effect to foster majority ownership of communications companies in foreign countries,” Kitchen said. “Glenayre (Technologies Inc.) opened offices in Singapore just to concentrate on that area.”
Beside’s PCIA’s own membership, which Kitchen said will be “vocal,” Kitchen hopes manufacturers, government players and other trade organizations will buy into the effort to promote the agenda.
“PCIA encourages everyone in the wireless industry to join us in promoting the Agenda for a Wireless America,” he concluded. “If we are united in working toward these goals, wireless will become the real competitor to the wireline local loop.”
