CTIA-The Wireless Association is backing a Congressional bill to impose a five-year moratorium on new discriminatory state and local wireless taxes.

The Cell Tax Fairness Act of 2009 bill (H.R.1521), sponsored by Representatives Zoe Lofgren (D-CA) and Trent Franks (R-AZ), was recently introduced in the United States House of Representatives.

"On behalf of the wireless industry and its consumers, I want to thank Representatives Zoe Lofgren and Trent Franks for their leadership, dedication and continued commitment to defending wireless users across the country from costly and discriminatory taxation," said Steve Largent president/CEO of CTIA-The Wireless Association, Washington, DC, in a written statement.

"This pro-consumer legislation has gained tremendous bipartisan support, and we are pleased to see Congress moving ahead in the right direction to ease the tax burden on wireless customers," he said.

Mr. Largent is a retired American football player, enshrined in the Pro Football Hall of Fame for his career as a wide receiver for the Seattle Seahawks, and a former U.S. Congressman, having served in the U.S. House of Representatives for Oklahoma from 1994 until 2002.

The CTIA is the international association for the wireless telecommunications industry,
representing carriers, manufacturers and wireless Internet providers.

An estimated 15 percent of each consumer's monthly wireless bill goes toward taxes and fees. This is twice the 7.1 percent rate imposed on other competitive goods and services subject to sales tax.

In fact, a recent study on taxation of wireless service in the United States confirmed that, between 2003 and 2007, taxes and fees on wireless services increased four times faster than taxes on other goods and services.

The CTIA pointed out another anomaly in taxation: the fancier the phone, the higher the tax.

Consumers should not have to bear this "substantial, unfair tax burden," the CTIA said. Policymakers should roll back taxes on these wireless customers, the association urged.

"Last year, Americans paid nearly $21 billion in federal, state, and local wireless taxes and fees," Mr. Largent said. "The Cell Tax Fairness Act will protect consumers from new discriminatory taxes and fees, but preserve existing revenue for states and localities.

"The wireless industry continues to be a critical driver for growth in our nation's economy by providing essential and affordable services that help millions of Americans cut costs and increase productivity and efficiency," he said. "We look forward to working with the sponsors and all Members of Congress to see that this important legislation becomes law."

Research from CTIA shows that as of year-end 2007, the U.S. had more than 255 million wireless users, or roughly 84 percent of the nation's recorded population. That number has continued to grow.

The same wireless industry survey also indicated a huge jump in SMS usage. More than 48 billion text messages were reported for December 2007, or 1.6 billion messages a day. This was a 157 percent increase over December 2006.

Also, a report issued in March by the Federal Communications Commission claimed that in contrast to other platforms for high-speed Internet service, mobile wireless accounted for more than 68 percent of the overall growth in high-speed lines from June 2006 to June 2007.

The CTIA is lobbying hard to push for the passage of the bipartisan Cell Tax Fairness legislation, which comes as mobile marketing has evolved into a viable industry of its own.

"The wireless sector of the technology industry continues to be an important driver for growth in our nation's economy," said Verizon Wireless president/CEO and CTIA chairman Lowell McAdam in a statement.

"Americans don't just talk on their wireless phones anymore," he said. "They access the Internet, get information, pay bills and use wireless to be more productive at work and other every-day activities."