d that wireless networks are already competitive. This was con- tradicted in May 2010 in the FCC's annual report on the state of competition in the wireless industry. For the first time, the FCC did not state that there is competition. In comments afterward, one of the commissioners stated that competition had decreased because of consolidation in the industry. The four largest mobile providers-AT&T, Sprint Nex- tel, T-Mobile, and Verizon-each announced several purchases in the two years prior to the report. Verizon purchased the mobile assets of Alltel Corp., and Sprint Nextel Corporation. combined its advanced-generation network with that of Clearwire. Network neutrality for mobile networks is a particularly difficult issue. Capacity is finite and wireless networks are being built up to handle large amounts of data and video, which can easily overwhelm them. Providers have stated that a shortage of spec- trum, over which wireless services operate, makes it necessary to more tightly control traffic carried on mobile networks. Most providers do agree that both wireless and wireline carriers should adhere to rules on transparency. Transparency should apply to network management and disclo- sure in understandable language about conditions and characteristics of their networks. Network management applies to a carrier's efforts to handle congestion and security threats. The Haves versus the Have Nots: First Class and Everyone Else Many consumer watchdog organizations feel that creating exceptions for certain, pos- sibly lucrative, applications will in effect create two different Internet classes of net- work services. They fear that the part of the network providing priority "first class" treatment for new applications will take increasing amounts of capacity away from ordinary applications and bog them down. Currently, applications that require spe- cial treatment operate over a carrier's private IP data Multi-Protocol Label Switching (MPLS) networks, where QoS is routinely applied and paid for by commercial cus- to