According to Martin, the FCC was wise late last year to remove barriers to the video market by streamlining processes for acquiring franchises.

He added that his agency's move in October to end exclusive cable contracts in apartment buildings further opened the video market to competition. He said the decision also is a good high-speed Internet strategy because of what can be done with that type of network infrastructure.

Martin called for a significant reform of the universal service fund, which subsidizes telecommunications services in rural and underdeveloped areas. He said the program needs to be retooled to help those areas receive 21st century services and to subsidize traditional services.

Martin favors moving to a "reverse auction" methodology for USF distribution. Under that system, the carrier agreeing to receive the lowest subsidy wins. The approach is designed to reduce the number of companies drawing from the fund.

Before Martin's remarks, a panel of wireless industry executives and experts warned the FCC and Congress about the potentially ill effects of regulation in their market.

Robert Quinn, senior vice president for regulatory affairs at AT&T, lamented that some policymakers seem to be moving toward stiffer wireless regulations. He said that consumers now have access to competitive choices in the market and that the industry needs to do a better job of educating people about what they are.

"It's an area where competition is really thriving," Quinn said.

Kathleen Wallman of Beauxcrest Creative & Analytics, a former chief of the FCC's Common Carrier Bureau, said it is particularly important that policymakers resist the urge to regulate the wireless market as it collides with mass media models.

She said the emergence of wireless devices capable of delivering robust content has been a game-changer. "If you protect competition, a lot of other things fall into place," she said.

Thomas Sugrue, vice president of government affairs at T-Mobile USA, said it is hard enough for many mobile operators to compete because of intense capital demands. He said there are more substantial network maintenance issues for wireless firms when compared with traditional phone companies because spectrum is limited.