Wireless industry defends itself against mounting criticism

Computerworld - Facing an unprecedented onslaught of criticism of its pricing models, exclusive handset deals and other practices, the wireless industry is gearing up to defend itself in hearings before the Federal Communications Commission and other government groups.

"The wireless industry in the U.S. has the coolest handsets, the applications are more robust, and the networks have the highest speeds with the lowest pricing," said Christopher Guttman-McCabe, vice president of regulatory affairs at the CTIA in an interview today. "Can things get better? Yes. But things will get better."

The CTIA, an association of wireless service providers, handset makers and a growing number of vendors of other wireless-based products and services, such as Google Inc., says it is a bit confused by the level of criticism heaped upon the industry in recent weeks. Critics have leveled a variety of charges at wireless companies. Among other things, they contend that there's a lack of innovation in the wireless market and they say that providers are overcharging for services, according to Guttman-McCabe.

"I think it's extremely hard to understand the criticism we're hearing," Guttman-McCabe said. "People pay ... a hell of a lot less than they paid [for wireless services] 15 years ago, and think of what you get now that you couldn't get then."

The CTIA is planning to carefully watch the FCC meeting on Thursday, when the agency will consider whether to conduct three probes, or "inquiries," into the wireless industry. The FCC will decide whether it will work to find ways to encourage wireless vendors to be more innovative, competitive and open in providing information to consumers looking to buy wireless services.

Guttman-McCabe said the CTIA expects the FCC to go forward with the inquiries, which will provide the industry with an opportunity to defend itself against the criticism. Officials from the wireless trade group won't testify or file written comments on Thursday, but the organization does expect to be given an opportunity to respond later, he said.

Although several industry critics and the FCC have recently voiced myriad concerns about the wireless industry, generating a spate of bad publicity, the CTIA noted that actual customer complaints to carriers this year have declined in nearly every category -- in both actual numbers and in the ratio of complaints per million customers.

The only area where complaints have risen is among consumers concerned about wireless telephone solicitations from a variety of companies, including those looking to sell car warranty extensions. Some of the carriers have aggressively fought those calls, many of which are made illegally by advertisers using auto-calling systems, Guttman-McCabe said.