The CTIA – A Microcosm of the Industry

Implications: The CTIA, once known as the Cellular Telecommunications Industry Association, was one of the key organizations that defined the global wireless industry. The CTIA’s influence was and still is global.  Watching this organization is also an excellent way of gathering data and understanding of industry events.

Analysis: The CTIA, today known as the Cellular Telecommunications and Internet Association, is still the single most important industry force because it is dominated by the carriers.

The carrier community is the single largest purchasing block in the telecom industry.  However, we are at a crossroads in the telecom industry as the industry is migrating towards a multimedia environment.

The migration/evolution is not just something called 4G.  The evolution is towards an industry environment that requires telecom carriers to become platforms for voice, video, music, Internet access, and interactive web sessions.  The industry is evolving into a place where you and I can do business on a carrier’s network platform via the web.  The industry is evolving into a place where film makers are now creating content.

The evolution of the industry can be summed up in one word – CONVERGENCE.

CTIA’s activities reflect all of this.  The CTIA influenced and still influences all industry activities.  When you look at the make up of the group you realize just how much in control the large carriers are.  The CTIA’s influence is seen at its conventions and other smaller shows.  However, it is through it’s committees that the CTIA influences vendors and more importantly government telecom and media policies.  The CTIA is comprised of vendors and carriers but it is the carriers that dominate and control the organization.  No vendor would be stupid enough to disagree with me publicly or privately; the carriers pay their bills and they are a tough customer group.

My advice to investors:  Look at industry trade associations for an inkling of what is going on in a particular segment.  The trade associations/industry associations will provide you more insight than many traditional financial newspapers.