When the first cell phone call was made in 1983, few, if anyone, knew how big of an impact this wireless technology would have on our society. Fast forward to present day and wireless is being used in ways that were unimaginable only a few years ago.
For example, in 2008, there were only a few individuals who knew what a mobile application was and even fewer who downloaded them. Less than two years later, we have more than 150,000 apps available on seven different platforms and seven different stores. According to Gartner research, millions of people have spent more than $4.2 billion on purchasing apps last year. Moreover, few would deny that apps are an integral part of the wireless ecosystem – and they barely existed before July 2008.
These tremendous innovations, including apps, that Americans have come to expect from the world's leading wireless industry were in jeopardy until a week ago, when FCC Chairman Julius Genachowski announced he would avert an impending spectrum crisis that would have negatively affected the U.S. wireless industry and its customers.
As part of the National Broadband Plan rollout, the chairman announced the FCC and the National Telecommunications and Information Administration (NTIA) would work closely together to free up 500 MHz of spectrum over the next 10 years.
To the average person, this announcement doesn't seem important. But think of it this way – spectrum is the wireless industry's highway system that allows consumers to go from one place to another (whether it's Web sites, e-mails, pictures, videos, apps, etc). Without more spectrum, or roads, users would experience congestion when they're using these data-intensive programs.
In addition to reducing traffic, the chairman's spectrum announcement was a tremendous step toward maintaining our mobile ecosystem leadership. We call it the "virtuous cycle," which means as long as more spectrum is available, our industry will continue to invest in its networks to handle more capacity; device manufacturers will continue to develop new capabilities for handsets; and content developers will continue to create new apps and content. Ultimately, this benefits the consumers who continue to want and expect more from their mobile devices, but this cycle can only continue as long as the industry has the spectrum it needs to innovate and create. This is where the chairman's announcement makes all the difference.
With more than 276 million U.S. subscribers, wireless technology is truly the great Internet-enabled equalizer. It provides broadband to the person at anytime and anywhere. It is a solution to solving the digital divide and providing enormous productivity and efficiency gains for other industries.
In healthcare, doctors are monitoring their patients remotely. To save on energy costs and carbon emissions, individuals and businesses are deploying smart grids to adjust their use of electricity via wireless technology. Businesses are using mobile applications to manage inventory and delivery fleets.
While these new high-tech uses are revolutionary, we're seeing the same kind of innovation through text messaging. When the earthquake ravaged Port-au-Prince, Haiti, in January 2010, wireless subscribers donated more than $32 million via text messages to the American Red Cross. In February, together with the Healthy Mothers, Healthy Babies Coalition and numerous partners in the public and private sectors, we announced the text4baby program that sends free text messages to pregnant women and new mothers to promote healthy babies, particularly those in underserved populations.
In short, the wireless industry is one of the most vibrant sectors that is dramatically improving the way we live, work and play. Our industry is an integral piece in helping recover the American economy by creating jobs, spurring innovation and stimulating economic growth and investment.
As the chairman said last week, "no area of the broadband ecosystem holds more promise for transformational innovation than mobile."
We couldn't agree more. The last 26 years have been amazing for this industry and I can't wait to see where we go from here!
Steve Largent is president and CEO of CTIA-The Wireless Association.