Brief Summary of CTIA 2008 Keynotes - Lowell McAdam’s Keynote
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Lowell McAdam is the president and CEO of Verizon Wireless. You can find the script of his keynote in its entirety here. Keep in mind that we cannot guarantee accuracy and quality of the sources. You too could find those third party sources with a simple Google search.
Briefly, let’s see what the keynote was all about. At first Lowell McAdam reminisced over the past, 25 years ago, when the entire show, and even the whole wireless industry, could fit into a conference room. This time the 400,000 square foot floor space was barely enough to hold the exhibitions, let along the total number of people that attended the speeches and conferences.
(Photo Courtesy of CTIA Wireless 2008)
Right after a short tribute to the wireless industry’s key people, he talked about the way wireless has created a new mainstream of living to Americans throughout those 25 years. He mentions about three entire generations and covers the fact that right now we’re on our way into another new generation.
According to McAdam we should be proud that, while the industry is “fiercely competitive,” the ultimate power is in the hands of customers; they are the powerful decision-makers of the industry, defining where new trends are going, fulfilling their needs. Companies are coming together, working toward the same goal, and that’s designing their own solutions to meet the expectations of customers.
(Photo Courtesy of CTIA Wireless 2008)
He also states that the industry’s vibrant growth, the multitude of products on the show floor, and the wireless history altogether combined says that companies are READY to respond to whatever customers want next. However, he believes that this isn’t totally untrue since there’s “work yet to be done.”
McAdam is a strong believer that there’s no need for regulation! This is the most clear and present danger, the way he believes. He thinks that it’s time now to discard the baggage we’ve brought with us over the years. This is what’s most crucial on the “to-do” list considering the wireless industry.
“At this point in our evolution it’s time to get rid of industry practices and policies that no longer make sense for customers.
As an industry, we need to listen even more closely to customers and respond more quickly. As an industry, we also need to embrace new entrants who, as we’ve already seen, will only fuel the innovation engine.” ~ Lowell McAdam
The following analogy caught me off-guard; it simply explains the current stage of the industry oh so well: “To regulate this business is like taking a Polaroid snapshot of an industry moving at full-motion video speed. The picture you get today won’t be relevant tomorrow. You can’t attempt to codify and freeze a dynamic industry driven by rapidly evolving customer needs.” Customers ought to be the regulators!
He also gives an example that would practically kill innovation in the wireless business: 50 sets of rules, 50 different regulations throughout each state. Wireless is a national industry and it shouldn’t differ on a state-by-state basis. To go backwards from where the industry started out is “just plain stupid.”
All in all, Lowell McAdam gives four arguments to defend his point of view. First, regulatory micromanagement kills the industry by slowing down competition, increasing prices, and narrowing choices. It’d be impossible to use “wireless” services across different states, let along run a business.
Secondly, he brings up an excellent point regarding the economic failures in the past and that despite all of this, the wireless business is flourishing. Tampering with it would be dangerous and, thus, it should be left alone. It’s “something” that improves the condition of the USA's economy. It should be left alone to move further.
Third, newcomers wouldn’t enter a business filled with proprietary regulations. Once again, regulation leads to less competition, low motivation, and ultimately, close to zero innovation. And his final point is about state-wise inconsistencies—just read the following quote:
“There are well documented cases every year where people face life-threatening situations – or die – because of a lack of coverage caused by protracted construction permitting battles with local municipalities.” ~ Lowell McAdam
Next: Kevin J. Martin’s Keynote >>
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