FCC approves inquiry into wireless industry

August 27, 2009

The Federal Communications Commission on Thursday approved an inquiry into investments and innovation in the wireless industry, a move which could lead to greater government regulation of wireless carriers and providers of mobile broadband.

Industry observers see the inquiry as a sign that the FCC under Chairman Julius Genachowski is a more activist agency than in past administrations. FCC investigations could lead to greater controls over wireless competition, exclusive handset deals and truth-in-billing.

Wireless carriers like AT&T and Verizon Wireless say they have spent billions of dollars over the last few years upgrading their networks to provide customers with faster 3G mobile broadband internet connections.

CTIA, the wireless industry, said innovation in the past few years is evidenced by the growth of mobile phone applications since the opening of the first applications store just over a year ago and the newest smartphones.

The industry said consumers in the U.S have access to the highest speed wireless networks and the lowest price per minute of the 26 countries tracked by Merrill Lynch.

"The wireless ecosystem - from carriers, to handset manufacturers, to network providers, to operating system providers, to application developers - is evolving before our eyes and this is not the same market that it was even three years ago," CTIA said Thursday. "In this industry, innovation is everywhere."

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