RCA Advocacy Agenda

The Rural Cellular Association’s 2011 Issue Advocacy:
Restoring Competition, Creating Economic Growth

In 2011, the Rural Cellular Association will continue to educate federal policy-makers on the lack of competition in the wireless industry.

Today two carriers – AT&T and Verizon Wireless – control two-thirds of the wireless market and hold virtually all of the economic power. This duopoly stifles competition. As a result, many Americans (particularly those in rural areas) cannot access the latest technology - slowing the nation’s economic and job growth.

In order to combat this lack of competition and spur economic and job growth, the Rural Cellular Association will prioritize the following issues in 2011:

Data Roaming – As with voice roaming, wireless carriers should be required to negotiate just and reasonable data roaming terms with all requesting carriers. The line between voice and data services is soon to disappear. As LTE networks are deployed across the nation, voice service will be just one of many applications running on each carrier’s network. The FCC has authority under Titles I, II, and III of the 1996 Communications Act to act on the issue of data roaming.

Interoperability (700 MHz Band Classes) – Devices designed to work in any one block of paired spectrum should work across all paired blocks within that same spectrum. Unless the FCC or Congress acts to restore this 1980s-era requirement for the 700 MHz spectrum, it will be technologically impossible for the latest devices to roam from one network to another. As a result, large blocks of spectrum could go unused, spectrum will be unnecessarily devalued and, more importantly, wireless consumers and public safety will have less access to much more costly wireless technology.

Universal Service Fund – In order to reduce growth of the Universal Service Fund, policy makers should work towards support mechanisms that are highly targeted and portable with consumer choice. The fundamental goal of USF is to drive competition and high-quality voice and data services into rural America. Competition breeds innovation and quality. That is why as many carriers as are available should compete to provide the best service in high cost areas. We, therefore, oppose reverse auctions or any other single-winner process as a means to award universal service support and believe that support should follow the customer. RCA will also oppose interim USF reform measures which propose an inequitable phase out of high cost support for wireless carriers, fail to provide an effective means of promoting improved mobile wireless coverage, or distract from efforts to achieve meaningful long-term reform.

Spectrum Allocation – Competitive carriers need low-band spectrum that is interoperable and free from interference. Federal policy makers should take action to assure that competition, not preservation of current wireless communications industry market share, drives the allocation of future spectrum. Federal policy makers should concentrate on innovative methods and techniques to fully utilize spectrum and maximize its value while supporting market entry and additional competitors. Federal policy makers should support spectrum allocations that enable smaller entities to meaningfully compete for additional spectrum through allocating low-band spectrum in smaller block sizes.

Device Exclusivity – Exclusivity is anti-competitive and anti-consumer; consumers should be free to put whichever device they want to use on the network that best serves their needs. The lack of interoperability in spectrum bands used for current 4G mobile broadband deployments threatens to exacerbate the anticompetitive effects of exclusivity arrangements by creating technical barriers that result in de facto device exclusivity.

NG911 – Federal policy makers must ensure that Next Generation 9-1-1 (NG911) emergency systems are not debilitating or cost-prohibitive to providing emergency services in rural and regional areas. Deployments, including public safety deployments like 911, are typically made in urban areas first. Rural PSAPs tend to have a technology lag; NG911 requirements should account for slower rural deployments. Rural and regional carrier compliance requirements must not precede PSAPs deployments. Similar to other 911 requirements, rural and regional carriers will need additional time for deployment and recognize the increased impact of fixed-cost upgrades to carriers serving smaller customer bases.

Bill Shock and Consumer Issues – Consumer issues must be resolved in a manner that minimizes regulatory intrusion in the wireless market. Accordingly RCA will oppose unnecessary requirements, restrictions, and obligations that may have the unintended consequence of consumer harm through unreasonably increased costs associated with compliance, while working to resolve any underlying consumer issues. RCA will support policies that encourage the introduction of new, innovative wireless technologies to the marketplace.

700 MHz Interim Build-out Benchmarks – RCA will continue to work towards fair and reasonable build-out requirements for current and future spectrum allocations. The most pressing issue regarding build-out involves the upcoming interim benchmark for CMA and EA 700 MHz licenses. These licensees must provide signal coverage and offer service to at least 35% of the geographic area of their license within 4 years of the end of the DTV transition (June 13, 2013). Failure to meet this interim requirement will result in a 2-year reduction in license terms, from ten to eight years, thus requiring these licensees to meet the end-of-term benchmark at an accelerated schedule; possible enforcement action including forfeitures; and proportional reduction in the size of the licensed area. Further, reports on the status of licensees’ efforts to meet this interim benchmark are due June 13, 2011. As a result of the FCC’s interoperability policies, many RCA members will not be able to meet this interim benchmark. RCA will work to find a consensus policy position to take to the FCC.

700 MHz D Block – The D Block should be auctioned as planned rather than simply reallocated to public safety. In the meantime, policy-makers must act to restore interoperability to the 700 MHz spectrum. Only interoperability will provide public safety with an effective system of redundant wireless networks in the event of a catastrophic incident or any other need to immediately increase public safety’s communications capacity.

Special Access – The large national carriers have an overwhelming and anticompetitive share of special access markets across rural and regional portions of the U.S. As a result, special access providers like AT&T and Verizon are preventing competitive entry and fail to offer special access services at just and reasonable terms and conditions. The FCC is currently evaluating the proper regulatory framework to adopt for special access service pricing, which is necessary to protect consumers, spur market entry and foster competition. RCA will continue to track the FCC’s special access proceeding to ensure the special access market is competitive.