The way the world communicates has changed dramatically since E-2
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1 State of Telecom State of Telecom 2013 Prepared for Nevada Assembly Commerce & Labor Committee March 1, 2013 Stephanie Tyler, President - AT&T Nevada For more info contact: Randy Brown - AT&T Nevada rb9192@att.com
2 The way the world communicates has changed dramatically since E-2
3 Today, people are communicating in more ways than ever before. Historically: Landlines connected you to a place. Now: New technologies connect you to a person or thing E-3
4 Newer technologies are quickly replacing traditional landlines E-4 Nationwide: Every month 500,000 consumers cancel their traditional landline service in favor of wireless or IP. 1 One third of American homes are now wireless only. 2 One third of American households use VoIP. 1 Sources: 1 FCC Local Competition Report (2001, 2008, 2009, 2010, 2011) 2 CDC National Health Statistics Report (October2012) 3 Internet Access Services Reports (06/30/2001 and 06/30/2011) From , Nevada Has Seen: 224 percent increase in wireless subscriptions. 1 2,276 percent increase in broadband subscriptions percent decrease in landline subscriptions. 1 Currently, only 10 percent of homes in Nevada are wireline-only. 2
5 E-5 Low-income households, seniors, and rural residents are switching from landlines to new technologies.
6 Low-income Americans are switching to wireless Nationwide: E-6 In 2012, 47% of all adults living in poverty and 38% of all adults living near poverty are wireless-only households.1 In Nevada: In 2012, 81.27% of Federal Lifeline Support in Nevada went to wireless ETCs, while only 18.73% went to incumbent landline carriers. In 2009, the amount of Federal Lifeline Support going to wireless ETCs was only 11%. Source: 1 Lifeline is a discount to low income residential customers based on state and federal guidelines. Nearly Half of American Adults are Smartphone Owners, Pew Study March 1, 2012
7 Seniors are also choosing the benefits of wireless communications E-7 According to AARP, nearly 90 percent of people age 50+ own some type of mobile technology.1 Nationwide, 22 percent of senior households have completely cut the cord and have eliminated their landline service.2 80 percent of senior households 2 have wireless service. As of April 2012, 53 percent of Americans 65+ are on the Internet or 70 percent of which use the Internet on a typical day and 34 percent are involved in social networks.3 1 AARP Report, Health and Caregiving among the 50+: Ownership, Use and Interest in Mobile Technology (January 2011) 2 The Wireless Revolution: Are the Elderly Keeping Up? Jeffrey T. Macher and John W. Mayo, May Pew Internet and American Life Study on Older adults and Internet Use, June 6, 2012
8 Rural Americans are also adopting wireless and seeing its benefits Farmers are some of the earliest adopters and most innovative users of wireless technology. By combining GPS and other broadband technologies, farmers are planting and watering more efficiently, accessing weather and commodity information in real time and connecting to customers and suppliers wirelessly while at work in the fields. Telehealth services can provide rural communities and small towns access to specialty services, check-ups and follow-up appointments. Through distance learning and high-speed IP networks, rural students and schools can connect to Advance Placement and other specialized courses across the country. E-8
9 E-9 The Wireless Transition
10 As of 2011: E-10 88% of U.S. households have a wireless phone. 29.7% of U.S. households only have a wireless phone. Another 15.7% receive almost all of their calls wirelessly, even though they have landline service. Wireless consumers in the U.S. can choose among more than 630 different wireless devices offered by service providers, independent retailers, and manufacturers. More than 33 different companies manufacture wireless handsets / devices sold in the U.S. Sources: CTIA Research June 2012, NCHS, 15th CMRS Competition Report
11 The Competitive Landscape: Nevada has a Choice of Providers E-11 There are currently 74 Commercial Mobile Radio Service Providers (CMRS) registered to provide wireless service in Nevada: Absolute Home Phones, Inc. Globalstar USA, LLC Sacramento Valley Limited Partnership ACN Communication Services, Inc. Granite Telecommunications, LLC Southwestco Wireless L.P. AirTouch Cellular GreatCall, Inc. Sprint Spectrum L.P. American Messaging Services, LLC i-wireless, LLC TAG Mobile, LLC AmericaTel Corporation Kajeet, Inc. Telefonica USA, Inc. Assist Wireless, LLC KDDI America, Inc. Telrite Corporation Bandwidth.com, Inc. Lightyear Network Solutions, LLC TerraCom Inc. Blue Jay Wireless, LLC Locus Telecommunications, Inc. T-Mobile West LLC Boomerang Wireless, LLC MCI Communications Services, Inc. Total Call Mobile, Inc. Boost Mobile, LLC MetroPCS Nevada, LLC Touchtone Communications Inc. Budget PrePay, Inc. Midwestern Telecommunications, Incorporated TracFone Wireless, Inc. BullsEye Telecom, Inc. Mitel NetSolutions, Inc. Tri-M Communications, Inc. Cause Based Commerce Inc. NECC Telecom, Inc. True Wireless, LLC Cellco Partnership New Cingular Wireless PCS, LLC Truphone Inc. Cheetah Wireless Technologies, Inc. Nextel of California, Inc. U.S. TelePacific Corp. Cintex Wireless, LLC Nexus Communications, Inc. USA Mobility Wireless, Inc. Coast to Coast Cellular Inc. NOSVA Limited Partnership Vast Companies, LLC Commnet of Nevada, LLC OnStar, LLC Virgin Mobile USA, L.P. Consumer Cellular, Incorporated PNG Telecommunications Inc. WDT World Discount Telecommunications Co. Cricket Communications, Inc. Primus Telecommunications, Inc. WiMacTel Inc. CTC Communications Corp. Puretalk Holdings, LLC Working Assets Funding Service, Inc. Day Management Corp. Q LINK WIRELESS LLC WUE, INC. Embarq Communications, Inc. Reno Cellular Telephone Company WWC License, L.L.C. Flash Wireless, LLC Reunion Wireless Services, LLC Ztar Mobile, Inc. France Telecom Corporate Solutions L.L.C. Rural Cellular Corporation
12 Wireless Data & Smartphone Growth E-12 Global mobile data traffic grew 70 percent in Last year's mobile data traffic was nearly twelve times the size of the entire global Internet in In 2012, a fourth-generation (4G) connection generated 19 times more traffic on average than a non-4g connection. Average smartphone usage grew 81 percent in The number of mobile-connected devices is expected to exceed the world's population in Global mobile data traffic is expected to increase 13-fold between 2012 and Source: Cisco Global Mobile Data Traffic Forecast Update (2012) From 2000 to 2011, the number of monthly text messages increased from 14 million to more than 193 billion texts per month. (Source: CTIA)
13 Paying Less for More Minutes +85% Decline since Deregulation In 1993 Average Local Monthly Bill Down 2% Year-to-Year E-13 Source: CTIA Semi-Annual Wireless Survey
14 Future of Wireless: Broadband E-14
15 The National Broadband Plan E-15 What it says: The federal government should allocate 500 MHz of additional spectrum for existing and new wireless broadband providers in order to foster additional wirelesswireline competition at higher speed tiers. Local, state and federal policymakers should improve the utilization of broadband infrastructure (towers, utility poles, and rights-of-way). Policymakers should enable broadband development for mobile health, smart grid, education and public safety. The Goal: The FCC s goal is to provide 100 million American households with access to broadband connections at 100 megabits per second by 2020 as much as 20 times faster than what is generally available in Source: CTIA and The National Broadband Plan
16 The National Broadband Plan E-16 The National Broadband Plan cautions that regulations requiring continued investment in two networks will slow the effort to connect all of America with high speed Internet. Regulations require certain carriers to maintain POTS a requirement that is not sustainable and lead to investments in assets that could be stranded. These regulations can have a number of unintended consequences, including siphoning investments away from new networks and services. Source: The National Broadband Plan
17 The Expanding Array of Broadband Devices & Services SMARTPHONES MOBILE INTERNET DEVICES NETBOOKS TABLETS E-17
18 Wireless Broadband: mcommerce Mobile commerce is expected to reach $31 billion by 2016, up from $3 billion in Purchase digital content (Music, Video, Books, etc.) Mobile banking & payments E-18 Price comparison Find and use coupons SOURCE: CTIA NARUC PRESENTATION -
19 The Healthcare Antidote: Broadband Networks E-19 Ways broadband can help manage your care: Mobile Medical Reminder and Administration Pregnancy & Infant Monitoring Mobile Skin Screening Mobile Monitoring of Elderly Mobile Exams and Consultations Emergency Management Rural Health Care Health Care Broadband Access Fund to subsidize consumer devices with health care applications (i.e. mobile phone with mhealth app). Health Care Broadband Infrastructure Fund to subsidize community broadband anchor institutions which focus on health care delivery. In a 2009, CTIA and Harris Interactive survey on mhealth, Americans believed that those in rural areas would benefit the most from mobile health services (51%). SOURCE: CTIA mhealth Conference 2009
20 Wireless Broadband: Going Green with Wireless Smart grids improve energy efficiency Real time traffic monitoring reduces emissions E-20 Electronic documents reduce paper waste Telecommuting reduces carbon footprints Wireless is going to be one of the key tools we use to solve the climate crisis. Al Gore Biodegradable devices and products SOURCE: CTIA NARUC PRESENTATION -
21 What This Means for the Future of Nevada Access to advanced, high-speed Internet through wireless and IP broadband will ensure Nevadans see more jobs and economic growth across all sectors. E-21 CONSUMERS PUBLIC SAFETY HIGH-TECH BUSINESS ENERGY INNOVATION & ENTREPRENEURSHIP AGRI-BUSINESS TRANSPORTATION ADVANCED MANUFACTORING EDUCATION HEALTH CARE
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