VoIP provider denied short-code access: VZW, T-Mobile USA and Alltel nix text message application

Rebtel, a Voice over Internet Protocol firm that offers low-cost international calling on mobile phones, said Verizon Wireless, Alltel Corp. and T-Mobile USA Inc. rejected requests for short codes for creating local numbers by text message.
“We believe Verizon’s rejection of our short-code campaign is an anti-competitive abuse of power, just like their rejection of NARAL Pro-Choice America’s campaign was interference with political speech and activism,” said Greg Spector, Rebtel’s spokesman. “Enough is enough. It’s time to do what’s right for the consumer-not Verizon’s profits.”
After initially rejecting NARAL’s request for a short code to enable the group to send text messages to supporters’ cellphones, Verizon Wireless promptly reversed course as part of a policy shift and granted the application.
Jeffrey Nelson, a Verizon Wireless spokesman, noted Rebtel’s short-code application was denied in May and that the firm did not appeal. Nelson said Verizon Wireless has a policy of rejecting short codes from companies that seek to compete with the No. 2 carrier, whether it be Rebtel or its traditional cellular competitors.
Rebtel said AT&T Mobility has not denied its application for a short code. But the outlook does not look good for Rebtel.
“While I can’t comment on this particular company and its services, I can tell you that our terms and conditions specifically prohibit the use of VoIP-type services on our wireless network,” said Mark Siegel, an AT&T Mobility spokesman.
Rebtel said it has not encountered such problems outside the U.S., where it said creating local numbers by text message is standard practice.
Alltel and T-Mobile USA did not immediately respond to requests for comment. However, Rebtel said Alltel’s rejection letter stated that the VoIP service “cannibalizes” their international rates and that T-Mobile USA responded it “will not participate in this campaign.” Rebel said Verizon Wireless’ rejection letter refused to acknowledge the legitimacy of the Stockholm-based firm’s international calling plan.
Sens. Byron Dorgan (D-N.D.) and Olympia Snowe (R-Maine) have asked Commerce Committee Chairman Daniel Inouye (D-Hawaii) to hold a hearing to examine discrimination against content and applications by telecom and cable companies and whether existing regulatory safeguards are sufficient. Inoyue has yet to say whether he will schedule a hearing.