Sen. Charles Schumer last week blasted the wireless industry in light of the recent power outage that caused havoc throughout the Northeast. “Last week’s blackout was a cell-phone disaster,” Schumer said. “Cell phones failed us on 9/11, they failed last week, and unless we make changes soon, they’ll fail us again next time.”
Whoa, Nellie. Wireless networks failed Sept. 11? That sure wasn’t the story we wrote. “Wireless works as nation stops,” was one front-page headline in our Sept. 17, 2001, edition. FCC Chairman Michael Powell told reporters after Sept. 11 that wireless networks held up better than their wireline counterparts.
Wireless proved its mettle on Sept. 11.
Therein lies the problem. Wireless networks have moved from being a luxury service to one that is essential. Sen. Schumer is aghast that wireless networks are engineered to assume only one-fourth of a carrier’s customers will call simultaneously and thus the networks can become overloaded quickly. Schumer wants the government to require increases in network capacity.
It actually sounds like Schumer wants the wireless industry to become regulated as heavily as the wireline industry. But it is the competitive nature of wireless that demands better buildout rather than the heavy hand of Washington. To be sure, frustrated customers on networks not built out adequately in New York will be interested in churning to a competitor. Networks that held up better than their counterparts, mostly through anecdotal evidence of friends and family, likely will gain customers in the next quarter or so. That threat of losing customers is more likely to produce better backup power systems than anything government could do.
Further, in order for carriers to increase capacity, they need (drum roll please) towers. Yes, towers. Those eyesore, bird-killing, too-tall, jutting-out masses of steel that help improve network quality. Towers cost (drum roll again) money. And carriers like to make money. One way they don’t make money is by giving away or heavily discounting devices. So prices, both on handsets and likely on services, will increase. But service will be better.
Schumer’s heart may be in the right place, but his suggestion of more government regulation ultimately could take away the very thing that has made the wireless industry successful-cutthroat competition.
