WASHINGTON-The mobile-phone industry, consistently thrown off balance by new taxes and regulations in one state after another, is fine-tuning a master plan that draws on tried-and-true political strategies that carriers hope will attract consumer support and media attention while putting city and state officials on the defensive.
The advocacy initiative, which CTIA President Steve Largent is expected to touch on at a Tuesday press briefing, represents a dramatic shift in industry lobbying heretofore concentrated in the nation’s capital even as industry increasingly faces some of its biggest challenges outside the Beltway in the form of new taxes, regulations and lawsuits.
“It’s going to be very scientific,” said Largent in a recent interview.
At a minimum, the campaign-whose cost has not been disclosed-will have industry putting foot soldiers in key battlegrounds, buying advertising and trying to propagate its message through newspaper editorials and white papers. The industry will try to generate grassroots support to fight unwanted taxes, regulations and laws, reaching out to rank-and-file cellular consumers that comprise a national 174-million subscriber base. But it won’t stop there. Industry will try its hand at grass-tops lobbying, a sophisticated strategy aimed at getting political, business and civic leaders on the bandwagon.
“We need to close some of these loopholes to address regulations and taxes,” said Largent, whose congressional experience and pro-football Hall of Fame celebrity status could boost lobbying forays in local communities around the country.
While major federal issues continue to require attention and high-powered lawyers are still needed to go to war in courts, the maturing cellular industry is watching a grand dynamic playing out in sometimes budget-crunched states whereby lawmakers, regulators and taxing authorities are flexing their collective muscle. States are leveraging a savings clause in a 1993 law that barred them from rate-and-entry regulation of wireless carriers, but left to them jurisdiction over terms and conditions of service.
As such, wireless carriers will push for greater federal pre-emption at the Federal Communications Commission and in Congress, which this year could take a stab at rewriting the 1996 telecom act. It will be a tough fight for the $100 billion cell-phone industry. States, counties and cities are powerful lobbies too. In addition, Republicans who control the White House and both houses of Congress tend to be highly protective of states’ rights.
Largent is not satisfied that industry finished 2004 on a high note, owing to congressional passage of a spectrum relocation bill that will help operators secure more frequencies for third-generation wireless systems.
“We’re going to be aggressive. We’re going to be on offense,” said Largent.
What the mobile-phone industry wants to avoid in the future is another California bill of rights for consumers, which was several years in the making before being approved last May by state regulators. Largent said he was disappointed the bill of rights could not be derailed, given the large sum of industry money paid to lawyers and consultants in California.
Largent said CTIA’s executive committee could take further action on the advocacy initiative later this month.
As for the many class-action lawsuits filed in state courts around the country, Largent is getting some help from his brethren in Congress and at the White House in the form of tort reform. Legislation to curb class-action lawsuits-like health and consumer legal actions pending against industry-is a high priority for President Bush and Congress this year.
Largent, who appears to be gradually differentiating himself from his predecessor, Tom Wheeler, said other 2005 priorities include location-based enhanced 911 service implementation, wireless content rating and labeling, homeland security and disaster readiness and health. “We’re going to err on the side of doing too much research,” said Largent. Largent also has indicated he wants to do more to make wireless services more accessible to people with disabilities.
