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Before theFederal Communications CommissionWashington, DC 20554
In the Matter of Implementation of Section 6002(b) of theOmnibus Budget Reconciliation Act of 1993Annual Report and Analysis of CompetitiveMarket Conditions With Respect to MobileWireless, including Commercial MobileServices)))))))))WT Docket No. 10-133To:The Commission
COMMENTS OF VERIZON WIRELESS
Bryan N. TramontAdam D. KrinskyRussell P. Hanser WILKINSON BARKER KNAUER, LLP2300 N Street N.W., Suite 700Washington, D.C.20037(202) 783-4141
Counsel to Verizon Wireless
Steven E. ZippersteinVice President, Legal & External Affairs &General CounselJohn T. Scott, IIIVice President & Deputy General CounselVERIZON WIRELESS1300 I Street N.W.Suite 400 WestWashington, D.C.20005(202) 589-3760July 30, 2010
 
TABLE OF CONTENTS
I.SUMMARY AND INTRODUCTION............................................................................1II.THE MARKET FOR MOBILE WIRELESS SERVICES IS ROBUSTLYCOMPETITIVE..............................................................................................................7A.The Structure of the Mobile Wireless Market Demonstrates itsCompetitiveness..................................................................................................91. Numerous Diverse Providers....................................................................92.Ease of Entry for New Providers............................................................313.The U.S. Market Compares Favorably Internationally............................42B.Mobile Wireless Providers Compete Fiercely on Price and NumerousOther Factors.....................................................................................................461.Intensifying Price Competition...............................................................46a.Prepaid Market and Price Trends................................................49 b.Postpaid Pricing.........................................................................54c.Data Pricing...............................................................................56d.Mobile Messaging Pricing..........................................................63e.Bundled Service Pricing.............................................................642.Intensifying Non-Price Competition.......................................................66a. Network Performance and Coverage..........................................66 b.Wireless Mobile Devices............................................................73c.Applications, Content, and Openness..........................................74d.Customer Information and Customer Care..................................75e.Service Plans to Meet Customer Needs.......................................79f.Advertising.................................................................................80C.The Competitive Marketplace Has Led toRising Consumer Satisfaction...........811.Satisfied Customers...............................................................................822.Minimal Complaints..............................................................................823.Low Churn Despite Low Barriers to Switching......................................83
 
iiIII.THE INPUT AND DOWNSTREAM MARKET SEGMENTSILLUSTRATE ACOMPETITIVE LANDSCAPE....................................................................................86A.While More Spectrum Will Be Needed, Spectrum Is Not a CompetitiveConstraint..........................................................................................................86B.Competition in the Backhaul and Infrastructure Segments ProvidesWireless Carriers withAmple Choices to Meet Their Needs, FuelingWireless Competition........................................................................................881.Backhaul................................................................................................882.Infrastructure.........................................................................................93C.The Mobile Wireless Ecosystem Offers Diversity in the Device,Application, and Content Segments...................................................................961.Devices..................................................................................................972.Applications.........................................................................................1093.Content................................................................................................1194.Mobile Commerce...............................................................................121IV.THE
 FOURTEENTH REPORT 
CONTAINS NUMEROUS ERRORS THATSHOULD BE CORRECTED IN THE
 FIFTEENTH REPORT 
....................................122A.The
 Report 
Erred in Failing to Make an Effective Competition Finding...........122B.The
 Report 
Placed Undue Emphasis on “Continued IndustryConcentration,” Relying on a Flawed Analysis While Declining toConsider Any Pro-Competitive Effects of Consolidation.................................1251.The
 Report 
Focused Too Heavily on HHI Measures to AssessCompetitive Trends in the Market for Mobile Wireless Service............1262.The Exclusion of MVNOs as Market Participants Skewed the
 Report 
’s Evaluation of Concentration..................................................1293.The Report Misused Subscriber Growth Statistics to Advance theClaim that IndustryConcentration Is Increasing...................................1324.An Evaluation of the Effects of Consolidation Reveal SignificantConsumer Welfare Benefits.................................................................134C.The
 Report 
’s Spectrum Analysis is Flawed......................................................1361.The 1 GHz Line as a Measure of Competition is Unsupportable...........137
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