LAS VEGAS-Federal Communications Commission Chairman Kevin Martin said during a keynote last week at the CTIA Wireless 2008 event that he opposes Skype Ltd.’s petition to impose open access throughout the cellphone industry, prompting cheers from cellular carriers and criticism from others.
“In light of the industry’s embrace of this more open approach, I think it’s premature for the commission to adopt any other requirements across the industry. And thus, … I am going to circulate to my fellow commissioners an order dismissing a petition by Skype that would apply Carterfone requirements to the existing wireless networks,” said Martin, drawing applause from a packed room of attendees at the industry’s annual convention.
Martin noted the nation’s top carriers -AT&T Mobility, Verizon Wireless, Sprint Nextel Corp. and T-Mobile USA Inc. – have embraced the concept of making their networks open to third-party applications and devices after initially opposing the approach. The industry turnaround followed the FCC’s decision last year to make one-third of the recently auctioned 700 MHz spectrum subject to an open-access condition. Verizon Wireless, which won a nationwide collection of regional open-access C-Block licenses at the 700 MHz auction, said it is committed to making its entire network open to devices and applications desired by consumers.
“I want to thank the chairman for attending the show … and specifically for announcing that he is circulating an item to dismiss the Skype petition,” said Steve Largent, president of cellphone industry association CTIA. “As the chairman referenced in his speech … the competitive and ever-evolving wireless industry delivers for consumers.”
Skype, a global Internet communications company owned by eBay Inc., asked the FCC last year to apply to the wireless industry a requirement in the landmark 1968 Carterfone decision that allowed third parties to attach devices to the public landline network.
Reaction swift
Reaction to Martin’s announcement was swift and sweeping.
“After so much positive – but incomplete – industry movement toward greater openness, we are disappointed that the chairman is leaning toward dismissing Skype’s petition, which would protect a consumer’s right to use any application and any device on a wireless network,” said Christopher Libertelli, senior director of government and regulatory affairs for Skype. “Skype’s petition is consistent with the FCC’s recently concluded 700 MHz auction and sought to extend those openness principles to the entire wireless market. Without commission oversight in this area, the FCC will have taken a step backward away from openness, and toward a policy of “trust the carriers.” While we are cautiously optimistic that the carriers will deliver greater openness, unfortunately, if the FCC acts on the chairman’s recommendation, it will have given up any tools to protect consumers if they do not.”
Michael Copps, one of two Democrats on the GOP-led FCC, said Martin’s move is premature.
“This is not the time for the FCC to declare victory and withdraw from the fight for open wireless networks,” Copps stated. “While we are all encouraged by preliminary commitments from some of the major carriers, we haven’t seen the details yet on how they are going to proceed – and the devil is always in the details, isn’t it?”
Copps added: “I would be a lot happier if Chairman Martin had come out today in favor of a strong and unequivocal FCC commitment to nondiscriminatory, pro-consumer conduct in the wireless world. American consumers are used to downloading any legal software or content they want, on any computer they want, without seeking prior approval from their Internet provider. Why shouldn’t they be able to do the same on their wireless device? Openness in the wireline broadband market has fueled extraordinary innovation in the high-tech marketplace, created millions of high-value jobs, stimulated enormous economic growth, and benefited consumers all across the land. America cannot afford to let this opportunity slip by when it comes to wireless.”
A leading advocate of wireless open access and net neutrality also criticized Martin for jumping the gun.
“We are disappointed with Chairman Martin’s reported plans to turn down Skype’s petition, as should the more than 256.7 million people who now subscribe to cellular service,” said Gigi Sohn, president and co-founder of Public Knowledge. “The plans announced by one cellular company to be more open to devices and applications are just that – plans. There are many details yet to be worked out, and consumers may not see the benefits of a fully opened equipment and application wireless service. Whatever benefits do come about may not be known for some time.”
Sohn continued: “There are no subscribers today in the 700 MHz spectrum block. Any benefits to subscribers in that one small slice of spectrum, to which some open-access rules will apply, won’t be known for many years. There are many cellular companies doing business, and not all them subscribe even to the notion of opening their networks to innovative devices and services that the companies don’t provide. It has now been 40 years since landline phones were freed by the FCC from Ma Bell’s clutches. It is long past time for the wireless progeny to bring themselves into the 21st century and to give consumers the same choice in equipment and innovation.”
The Open Internet Organization chimed in with similar criticism. “The Skype petition helped lay the foundation for the FCC’s recently concluded 700 MHz auction and has generated more industry discussion of greater openness. It is important to recognize that despite the wireless carriers’ discussion of increasing openness, the existing wireless handset marketplace for all consumers still remains closed,” said Markham Erickson, executive director of the group. “It would be a serious mistake for the FCC to dismiss Skype’s petition before we’ve seen whether the telcos will follow through on their promises.”
“The chairman’s decision to oppose this important petition is a missed opportunity to usher in a new era of innovation,” said Derek Turner, research director of Free Press. “If open devices and applications are good for consumers in the networks to be built on the newly auctioned spectrum, why not for all mobile networks? … The small handful of companies that dominate the wireless world have a track record of stifling competition and an aversion to innovation. Trusting these same companies with the promise of the mobile Web is short-sighted. Mobile wireless is becoming an on-ramp to the information superhighway – with the potential to help bridge the digital divide. The key to the future success of the mobile Web – just like the wired Web – is openness. Users should be free to choose any device, run any application and access any content. Allowing wireless carriers to keep their networks closed is squandering the future of the mobile Internet.”
Martin is apt to get questioned by Democratic lawmakers about his decision to dismiss the Skype petition – which still needs support from two other FCC members to become official – at an upcoming House Commerce Committee hearing on the 700 MHz auction.
