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Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C

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Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) Wireless Telecommunications Bureau ) WT Docket No. 16-137 Seeks Comment on the State of Mobile ) Wireless Competition ) COMMENTS OF CTIA Thomas C. Power Senior Vice President and General Counsel Scott K. Bergmann Vice President, Regulatory Affairs Dr. Robert Roche Vice President, Research Public Affairs Krista L. Witanowski Assistant Vice President, Regulatory Affairs Kara D. Romagnino Director, Regulatory Affairs CTIA 1400 Sixteenth Street, NW Suite 600 Washington, DC 20036 (202) 785-0081 May 31, 2016 TABLE OF CONTENTS Page I. INTRODUCTION. ..............................................................................................................5 II. COMPETITION HAS FUELED U.S. LEADERSHIP IN 4G LTE AND IS DRIVING DEVELOPMENT OF TRANSFORMATIVE 5G TECHNOLOGIES AND SERVICES...........................................................................................................................7 A. By Any Metric—Deployment, Adoption, Data Usage, Network Investment, App Development, or Functionality—Mobile Wireless Competition in the U.S. is Delivering for Consumers. ...................................................................................8 1. Deployment................................................................................................. 8 2. Adoption. .................................................................................................. 11 3. Data Usage................................................................................................ 14 4. Network Investment.................................................................................. 16 5. App Development. .................................................................................... 17 6. Functionality. ............................................................................................ 18 B. The Next Generation of Wireless Networks—5G—Will Enable U.S. Wireless Carriers to Continue Global Leadership that Benefits Wireless Consumers.........20 1. Millimeter wave (“mmW”) networks will deliver high data speeds to consumers, even with high consumer use of bandwidth-intensive applications and services........................................................................... 22 2. 5G will connect everything, supporting the Internet of Things. ............... 23 3. 5G will be real-time, minimizing delays in network response and enabling entirely new services and applications....................................... 24 4. 5G will enable other applications and services, including use cases that are not yet imagined.................................................................................. 25 C. U.S. Carriers are Increasingly Focused on Ensuring that the U.S. is the World Leader in 5G Development....................................................................................25 1. Several U.S. carriers will begin mmW 5G service trials in 2016............. 25 2. The race to 5G is spurring new competition in the U.S. wireless market. 26 III. SERVICE PLANS CONTINUE TO EVOLVE AND OFFER MORE AS CARRIERS COMPETE TO WIN CUSTOMERS.................................................................................28 A. Increasing Consumer Data Use Has Been a Catalyst for Data Plan Innovation....28 B. Greater Ease of Entry and Continued Innovation by MVNO and Mobile Satellite Service Providers Highlight the Dynamic Nature of the Wireless Market....................................................................................................................33 1. Decreased barriers to entry and increased consumer demand for niche wireless plans are fostering growth and innovation in the MVNO marketplace............................................................................................... 33 2. Hybrid cellular/Wi-Fi networks continue to expand as wireless carriers look to offload data traffic and other companies look to capitalize on the technology................................................................................................. 34 3. Mobile Satellite Service providers are poised to provide additional competition. .............................................................................................. 35 i C. Competition is Driving Innovation in Unlicensed Spectrum Bands......................38 IV. COMPETITION IN THE WIRELESS MARKET CONTINUES TO PRODUCE NEW AND BETTER DEVICES, APPLICATIONS, AND OPERATING SYSTEMS. ............40 A. Competition in the Wireless Marketplace is Driving the Development of a Broad Range of Wireless Devices at Multiple Price Points, Spurring Further Competition Between Mobile Carriers. .................................................................40 1. There is robust competition in the wireless device market....................... 40 2. Wireless device functions are improving rapidly while prices are dropping. ................................................................................................... 44 3. Contract-free device payment plans provide consumers with more flexibility and increase competition.......................................................... 47 4. OEMs continue to develop and launch complementary wearable devices, which are poised to become indispensable add-ons to smartphones. ............................................................................................. 48 5. Wireless device operating systems continue to compete for the lead in market share while expanding into new platforms and devices. .............. 49 B. Mobile Applications are Becoming A Primary Portal for Consumers’ Access to Digital Information and Content in the Competitive Wireless Marketplace.....50 C. Mobile Advertising Spending Continues to Increase at a Rapid Rate, Demonstrating Continued Competition for Wireless Consumers. ........................52 V. COMPETITION AND CONNECTIVITY ARE CREATING MASSIVE GROWTH IN THE INTERNET OF THINGS. ........................................................................................55 A. IoT Is a Pervasive Evolution Affecting the Broader Mobile Ecosystem...............55 B. The IoT Landscape is Growing to Encompass Nearly Every Major Industry.......56 1. Automotive. .............................................................................................. 56 2. Healthcare. ................................................................................................ 57 3. Wearables.................................................................................................. 59 4. Smart Homes............................................................................................. 60 5. Agriculture. ............................................................................................... 61 6. Energy....................................................................................................... 62 VI. WIRELESS CARRIER INVESTMENT IN THE EXPANSION AND IMPROVEMENT OF NETWORKS IS EXCEPTIONAL. .............................................................................63 A. Competition is Increasing Capital Investment in Infrastructure, But There is Still More the Commission Can Do to Support Deployment of Infrastructure. ....63 1. Since the FCC’s last report on competition in the mobile marketplace, U.S. wireless carriers have continued to invest vigorously in their networks.................................................................................................... 63 2. Wireless carriers are continuing to find network efficiencies and expand cell site deployment...................................................................... 68 3. The Commission can continue to reduce barriers to the deployment of infrastructure and backhaul....................................................................... 69 4. Other agencies should also work to streamline deployments on federal lands. ......................................................................................................... 72 ii B. Wireless Technology Continues to Evolve, and Carriers Continue to Introduce Network Advancements.........................................................................................73 1. Operators are continuing to aggressively deploy and expand their 4G LTE networks.................................................................................................... 73 2. Investment in 4G LTE Advanced is unleashing the power of high bandwidth and increased data rates resulting from carrier aggregation. .. 74 3. Voice over LTE (“VoLTE”) is improving voice quality and will facilitate evolution to all-IP wireless networks........................................................ 77 4. Small cells and heterogeneous networks are helping to add capacity and represent an important step toward 5G. .................................................... 79 5. Network functions virtualization, software defined networking, and advances in 4G LTE machine type communications are paving the way toward 5G.................................................................................................. 81 C. Rural Consumers Have Increased Choices as Carriers Continue to Expand Coverage in Rural Markets. ...................................................................................83 VII. THE COMMISSION MUST FACILITATE ACCESS TO THE SPECTRUM NEEDED FOR MOBILE BROADBAND AND 5G TO ENSURE CONTINUED INNOVATION AND COMPETITION IN THE WIRELESS MARKETPLACE......................................86 A. Demand is Increasing Exponentially
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