subject: Fcc Will Be Very Active Managing Wireless Industry Under Obama [print this page] All I can say to the wireless industry is brace for impact. The industry has seen unbelievable rates of growth over the last several years because government did not stand in the way. That translated into jobs, investments and a rapidly growing industry.
This good news is not just from the big wireless carriers and handset makers, but also thousands of smaller companies punching their way onto the map in a healthy and growing industry. Just look at all the App makers in the marketplace. There were less then 500 four years ago. Today there are more than 150,000 apps. That's incredible growth.
There is a growing variety of companies involved with the wireless revolution thanks in large part to the success and rapid growth of smart phones over the last several years.
Will that change now that the government has decided to take a heavier hand approach with the FCC? The writing is on the wall.
Has the last ten years been perfect? No. There has been plenty for regulators and competitors to catch the companies on and to fix. One example is Early Termination Fees. Until the last few years they were unfair. Customers had to pay the same full charge whether they cancelled one month or 23 months into a two-year contract. That was not fair.
However in recent years the carriers have recognized this and fixed it. Now ETF's are fair for the companies and fair for the users. Could it have happened quicker? Yes, with a heavy-handed approach from the government. Just like the one gearing up for battle now.
There are other issues like that one in a competitive and rapidly changing marketplace. The problem with government trying to manage the growth is government moves much more slowly than the industry.
That causes gridlock. And that is not healthy for jobs, investments or growth.
There is no perfect solution. Both have advantages and disadvantages.
A heavy-handed government approach would handle things that are not working well more quickly, but would also slow down all the innovation and job growth and investment opportunity.
The other choice is a light-handed approach, which allows the industry to grow much more rapidly, which provides incredible industry growth. However it takes too long to fix unfair items.
So what it the solution? Someplace in the middle sounds good doesn't it?
However that is not in the cards. During the Clinton Democratic presidency the FCC was heavy-handed. During the Bush Republican presidency the FCC took a light-handed approach. Now during Obama Democratic presidency the FCC is signaling a heavy-handed approach once again.
We know what this means. We have seen it before. So my advice to companies in the industry, brace for impact. The next several years will see growth, however not at the same rate we have seen.
If you are looking for a job or investment in this rapidly growing industry, it will still grow, but not as rapidly. The best solution would be to find someplace in the middle. That may just make too much sense however for today's environment in Washington DC.
