The cell phone industry has the number one negative externality when it relates to using a cell phone while operating a vehicle. More and more accidents occur every day due to a driver becoming distracted while driving when using a cell phone. “The 2014 NSC report says the percent of drivers observed manipulating handheld electronic devices increased from 0.9% in 2010 to 1.3% in 2011.” Likewise, “National data show cell phones were involved in 350 fatal crashes in 2011” ("Cellular Phone Use and Texting While Driving Laws"). This amount of car accidents caused by driving and using a cell phone at the same time has caused governments to mandate certain laws prohibiting the use of cell phones, According to the National Conference of State Legislatures, “14 states, D.C., Puerto Rico, Guam and the U.S. Virgin Islands prohibit all drivers from using hand-held cell phones while driving” ("Cellular Phone Use and Texting While Driving Laws"). With this government regulation in place it will not prohibit consumers from being involved in the cell phone industry. It is a growing industry and many consumers are leaving the age of the house phones for mobile phones. Many consumers will only use their mobile phone for communication, and do not own landline phones.
With the government laws that will continue to grow over time due to externalities there are also taxes that make an effect on the cell phone industries for consumers. Every state is different when they charge taxes on wireless phone bills. According to CNN news,” Local, state and federal governments, 911 systems and even school districts tack on taxes and surcharges to your wireless bill that end up costing American cell phone customers an extra 17.2%, on average” (Goldman). With cell phones now being a need versus a want to consumers the charges that the governments tack onto the bills will be in effect until the end of time. There is an act that has been introduced to Congress called, The Wireless Tax Fairness Act, this act puts a moratorium on the taxes which prevents tax from being raised on the cell phones bill. With this Act it will not prevent taxes but it will help aid in the taxes from growing.

Goldman, D. (n.d.). The hidden 17% tax: Your cell phone bill. Retrieved June 21, 2015, from http://money.cnn.com/2013/07/10/technology/mobile/wireless-taxes/index.html
Cellular Phone Use and Texting While Driving Laws. (n.d.). Retrieved June 21, 2015, from http://www.ncsl.org/research/transportation/cellular-phone-use-and-texting-while-driving-laws.aspx