There are two important wireless industry conventions coming up. One is CTIA Super Mobility 2015. The other is the 2015 CCA Annual Convention. The Competitive Carriers Association is not as well known by many in the industry, but it should be. Both are important. Let me explain why.
CTIA focuses on the larger, wireless industry. CTIA is an advocacy group and conference focused on many important wireless issues its member companies face in the marketplace. It focuses more on larger carriers like AT&T Mobility and Verizon Wireless. However it also focuses on smaller wireless networks and the wide variety of companies that support the wireless industry.
CTIA tackles all sorts of issues like competition, innovation, regulation, challenges and growth opportunities. The conference is a massive show that represents the majority of the wireless marketplace. AT&T Mobility and Verizon Wireless are the two largest carriers in the industry, earning roughly 70% market share between them.
CCA focuses more on the smaller carriers that make up the other 30% of the wireless marketplace. These are companies like Sprint, T-Mobile US, U.S. Cellular, C-Spire Wireless and many others. Some of these like Sprint and T-Mobile US operate as national players and the rest are in smaller regional markets around the country.
The same service and support companies that work with the larger competitors also work with the smaller ones. Companies like Alcatel-Lucent, Ericsson, Interop Technologies, Syniverse and more, play an important role to all wireless players. I’ll be writing about some of these companies and important issues in upcoming columns.
Wireless is rapidly growing, but …
Many of the important issues are the same for both CTIA and CCA. So you may wonder why there are two different associations and conferences. The answer is simple: While large carriers and small carriers agree on plenty, they don’t agree on everything.
The wireless industry in the United States is a rapidly growing space, but there are several stumbling blocks, which need to be recognized, discussed and fixed.
Wireless in the U.S. is one of the fastest-growing and healthiest spaces. The wireless industry is the center of the universe. So we must keep it unencumbered and rapidly growing. This does not mean that every competitor is doing well. Some are and others are, well, struggling to one extent or another.
Spectrum shortage
Every wireless competitor has the same kind of need for things like spectrum. This gives them all an opportunity for growth – making sure all players have access to what they need.
However, wireless spectrum is in short supply. Not having enough is a fear every wireless carrier faces. All carriers need spectrum in order to remain competitive and grow. Spectrum is acquired from the U.S. government through auctions.
Unfortunately, the wireless industry does not share spectrum – carriers would rather own.
Thankfully, smaller carriers lease spectrum from larger carriers. Spectrum is the on-ramp and is how they let customers use wireless data services. As we have all learned in recent years, data services using spectrum is the center of the wireless universe.
So spectrum is a key piece of the puzzle for success of every carrier. That’s why it’s vital that every company have access to wireless data spectrum in order to remain competitive.
Larger companies can only share spectrum if they have enough
The problem is spectrum is limited, and companies can only share when they have enough. And unfortunately, most carriers don’t have enough as their customers demand more year after year. This means carriers must make hard decisions as to the best way to share their spectrum.
Here are a few examples:
AT&T Mobility said it leases spectrum through its mobile virtual network operator program when companies resell their services. Separately, it also has roaming partner agreements. Plus there are many other wireless operators in the U.S. and around the world where it has reciprocal roaming relationships.
Verizon Wireless said its LTE in Rural America program leases some spectrum to smaller carriers, however they must also use Verizon Wireless services, and it cannot use its own spectrum.
Sprint said it leases spectrum and has a strategic partnership with roughly 30 smaller carriers. They are very active in this leasing space.
T-Mobile US said it would lease, however it needs every drop of spectrum it has right now for its own growing customer base.
So, if many of the top four wireless carriers in the U.S. are struggling with capacity needs for their customers from limited spectrum, what about the smaller providers like U.S. Cellular, C Spire, newcomers like Google Project Fi and all the smaller providers from coast to coast?
No easy answers
This is a problem with no easy solution. There are no easy answers. The need continues to grow, but there just is not enough spectrum for every competitor. It’s like musical chairs, that childhood game we all played, when 10 people are walking around nine chairs. When the music stops everyone sits down, but someone is always left without a seat and is out of the game.
In a perfect world, sharing spectrum would not be a problem. Everyone understands the need and wants to do so. The problem is we don’t live in a perfect world and spectrum is limited. As the wireless industry continues to grow, and as customers use more spectrum every year, every carrier needs more spectrum.
No enemies here
Large and small carriers must work together to develop a real solution to this growing problem. Wireless competitors should compete with each other and win or lose based on service, reliability, quality, speed and price, not based on lack of spectrum.
And spectrum is just one problem the CTIA and CCA are trying to solve by working with their members and the U.S. government.
These are the types of battles being fought every day by both associations. Their conferences are a great place to mix and mingle with both wireless communities. Support companies and attend both shows because they serve all competitors. There are no enemies here.
CTIA and CCA are two very important groups if we want the wireless industry in the U.S. to remain healthy and rapidly growing for all. To fully understand the wireless industry and all the challenges and opportunities, it’s important to participate in both shows, even if you are on one side or the other.
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