RCA Encourages FCC to Enhance Competition for Rural America

FOR IMMEDIATE RELEASE                                                                      Contact: Lucy Tutwiler

May 20, 2010                                                                                                             (202) 449-9866

RCA Encourages FCC to Enhance Competition for Rural America

Washington, DC – Today, the Rural Cellular Association (RCA) continued to encourage the Federal Communications Commission (FCC) to take a data-driven and factual approach on its analysis of competition in the wireless industry, as there is not sufficient competition in the wireless industry for many in rural America.

There are fewer and fewer choices for consumers in rural America due to the continued dominance of the largest two carriers. The duopoly of Verizon Wireless and AT&T not only restricts choices, but it also puts enormous pressure on small carriers, prevents them from being competitive, and discourages new entrants into the wireless marketplace.  Further, when coupled with handset exclusivity and data roaming agreements, the duopoly leads to technology denial for many consumers in rural America.

In a statement, RCA President & CEO Steven K. Berry said, “We are pleased the FCC report identifies concern with wireless competition, and we look forward to working with the Commission to identify policy areas that will enhance competition for rural America.  Competition is all about consumers, and it is clear that consumers are choosing wireless technologies.  As the migration from wireline to wireless occurs, choices are needed in order to maintain a healthy marketplace.”

Berry continued, “As wireline continues to lose customers at an astounding rate of 700,000 subscribers per month, Verizon Wireless and AT&T are pulling out all the stops to acquire and maintain those subscribers, and they realize that now is the critical time to secure their market dominance with consumers.  It is important to not confuse the overwhelming migration from wireline to wireless with an assumption that wireless competition in all markets is alive, well and healthy.  The FCC must continue to promote competition and innovation, as the long term benefits to consumers in rural and regional areas could be jeopardized if there are fewer competitors in the marketplace.”

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 80 members covers more than 80 percent of the nation.

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