RCA Concurs with GAO Report; Rural and Regional Carriers Face Significant Challenges – Calls for FCC Action

FOR IMMEDIATE RELEASE                                                                      Contact: Lucy Tutwiler

August 26, 2010                                                                                                          (202) 449-9866

RCA Concurs with GAO Report; Rural and Regional Carriers Face Significant Challenges – Calls for FCC Action

Washington, DC – Today, the U.S. Government Accountability Office (GAO) confirmed what RCA has been expressing for months.  In a report entitled “Enhanced Data Collection Could Help FCC Better Monitor Competition in the Wireless Industry,” the GAO revealed that larger national wireless carriers have been able to exploit significant economies of scale and their market dominance at the expense of rural and regional consumers.  RCA applauds the GAO for highlighting the competitive challenges in the wireless industry and calls for immediate FCC action.

The report found that the biggest change in the wireless industry is industry consolidation among wireless carriers and that consolidation has made it more difficult for rural and regional carriers to compete.  In addition to consolidation, the report states that the inability to offer the latest handsets adds to rural and regional carriers’ competitive challenges.  As RCA has said before, handset exclusivity presents one of the most challenging hurdles to competition in rural America. Even FCC Chairman Julius Genachowski acknowledged that handset exclusivity curbs consumer freedom.  RCA fully supports the GAO’s suggestion that the FCC should collect more data on the extent to which handset exclusivity prevents consumers from moving between wireless carriers and urges the FCC to initiate a rulemaking to investigate the anticompetitive effects of exclusivity arrangements.

In a statement RCA President & CEO Steven K. Berry said, “I am pleased that GAO confirms the concerns we have expressed and recognizes the fact that smaller rural and regional wireless carriers face significant challenges as a result of market dominance by the largest carriers.”

Berry continued, “One such challenge highlighted by the report is handset exclusivity, which prevents many rural and regional carriers from providing subscribers smartphones, which help to drive broadband penetration in rural America.”

Berry stated, “RCA has urged the FCC to take immediate action on three policy issues that will help enhance and preserve competition in the wireless marketplace -- ending handset exclusivity, mandating data roaming and mandating interoperability across all paired bands of 700 MHz broadband spectrum.  These three actions will not only ensure a competitive marketplace, but also ensure consumers’ ability to access broadband with the device of their choosing, no matter where they may live or travel.  As the report concludes, the FCC should seek additional information and issue NPRMs for handset exclusivity and 700 MHz interoperability immediately.  The FCC is already prepared to act on a data roaming mandate. We applaud Congressional Members for sharing our concern and requesting additional information, and I look forward to our continued work to promote competition in rural America.”

About RCA

RCA is the nation's leading association for wireless providers serving rural areas of the United States. The licensed service area of RCA's nearly 90 members covers more than 80 percent of the nation.

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