Bad cake

What is it about the wireless industry that causes everyone outside the space to think that they can have their cake and eat it too?
The most recent perpetrator is Skype, which has asked the Federal Communications Commission to declare that all devices should be able to access wireless networks. Skype is using the Carterfone ruling from 1968 as the cornerstone for its argument. That decision allowed devices to connect directly to the old AT&T monopoly network as long as no harm was caused to the system.
Kudos to CTIA President Steve Largent for calling out Skype’s self-centered interests.
But even if the FCC turns down this decision, as it should, the idea that wireless networks need to be regulated like their wireline counterparts increasingly is up for debate-whether it’s network neutrality talk at the federal level or attempts at state and local levels to demand better coverage, even while fighting tower-siting requests.
Not all wireless networks are created equal. U.S. Cellular Corp. says it has no plans to upgrade to CDMA2000 1x EV-DO because it would cost too much money for too little return on its investment. If the FCC were to grant Skype’s request, U.S. Cellular would likely not have to allow Skype’s VoIP devices on its network because clearly it would degrade U.S. Cellular’s network. But what about Sprint Nextel Corp.’s planned WiMAX network? A case could be made that since few people will use the network in the beginning of its launch, Skype’s service would not degrade the performance of that network. But Sprint Nextel wouldn’t have time to recoup its investment in the network before Skype could start benefiting from Sprint Nextel’s deployment.
FCC Chairman Kevin Martin has it right: wireless carriers’ data networks should not be subject to telecom law; they should be regulated like information services. Further, what is best about the wireless industry is the competition among the players. Carriers will welcome companies like Skype when they find it gives them a leg up on the competition and when it makes financial sense for them to do so. The heavy hand of regulation would only hurt American consumers.