1 Net Neutrality: Is It Possible? Jackie McCarthy CTIA-The Wireless Association ® Mid-America Regulatory Conference June 7, 2010

2 2 More than 285 million subscribers, more than 59 million mobile broadband subscribers. Over 630 unique wireless devices, Over 85% are Internet capable. One Smartphone generates more data traffic than 30 basic-feature cell phones. Over 100,000 Apps available from six different stores, Over 3 billion downloads. Over 1 Trillion text messages sent in 2008; 740 Billion sent in first half of More than half of all public Wi-Fi connections are mobile devices, not laptops. 26% of Americans get news via mobile device. More than 15 million people use mobile banking. Sources: Available upon request. Wireless Broadband

3 3 In all the years of debate on this issue, there have been no examples of harms in wireless networks justifying wireless broadband regulation. Wireless is different because of spectrum, mobility and device integration. Wireless provides need the ability to exercise reasonable network management to ensure continued innovation and expansion of mobile technology. Regulation of wireless broadband has unintended consequences. -Injects uncertainty into investment, markets and auctions -Obstructs all aspects of the wireless ecosystem (apps, OS’s) Wireless Broadband & Net Neutrality

4 4 Regulatory Recognition of Wireless Network Management Needs FCC Chairman Genachowski noted that the wireless industry “turned clunky one-trick handsets into sleek and powerful mini-PCs.” He also said: “Managing a wireless network isn’t the same as managing a fiber network, and what constitutes reasonable network management will appropriately reflect that difference.” 1 NARUC Winter 2010 Resolution on Open Access to the Internet recognizes that the FCC should take “differences in…spectrum resources” into account when establishing net neutrality principles. Similarly, the CPUC urges the FCC to “take into consideration the technological challenges facing wireless broadband customers and their providers.” 1 See :”America’s Mobile Broadband Future,” available at (Oct. 7, 2009).

5 5 The course of regulatory restraint regarding mobile broadband set by the Clinton Administration and then-FCC Chairman Kennard led to unprecedented growth and innovation in mobile technology. The US is leading the wireless world. -More devices -More 3G subscribers -More network investment Application of an outdated monopoly-based regulatory regime is a step backwards and will lead to regulatory uncertainty. Title II Broadband Reclassification

6 6 Jackie McCarthy Director of State Regulatory Affairs CTIA – The Wireless Association® Questions or Comments?