Wireless Firms Dial Up Lobbyists

The wireless industry has begun bracing for a long four years. Regulators and lawmakers are examining a widening number of issues -- from exclusive handset deals to text-messaging rates -- that could impact the largest U.S. wireless carriers, companies such as Verizon Wireless and AT&T. Later this month, the Federal Communications Commission plans to begin a broad inquiry into competition in the wireless industry. It will also review rules designed to prevent carriers from tacking junk fees onto phone bills. Hoping to capitalize on dissatisfaction expressed by congressional Democrats about the competitiveness of the industry, some smaller carriers have stepped up lobbying Congress and the FCC for help. For example, small carriers, like Leap Wireless International Inc. and Cellular South, recently began meeting with FCC officials in hopes of convincing them to retool arcane rules designed to make sure consumers can use their BlackBerrys and other smart phones when they are traveling. "There is no right to data roaming. There's got to be. It's the next frontier," says Gigi Sohn, co-founder of Public Knowledge. "If a carrier doesn't have automatic data-roaming rights then they don't have a competitive service." Hoping to stave off regulatory or congressional action, wireless carriers are snapping up former staffers for Democratic lawmakers and beefing up their lobbying operations. In the first half of the year, Verizon spent $9.3 million on lobbying, according to the Center for Responsive Politics. AT&T spent $8.2 million during the same period. Both are on pace to spend slightly more on lobbying this year than they did in 2008.