April 23, 2012

The Fcc, Twc, Skype, And The Cellular commerce

On March 1, 2007, the Fcc ruled in favor of a appeal brought by Time Warner Communications, stating that local exchanges cannot deny entrance to wholesale telecommunication carriers (Twc) to contribute services and change traffic, together with voice over Internet protocol (VoIp).

The decision overturned rulings in South Carolina and Nebraska that allowed local rural exchanges to deny entrance to wholesale carriers, arguing that the wholesale providers were not true telecommunications providers, as they do not offer services directly to the public.The Fcc disagreed stating: "denying wholesale telecommunications assistance providers the right to interconnect with incumbent Lecs... Are inconsistent with the Act and Commission precedent and would frustrate the amelioration of competition and broadband deployment."

In an additional one somewhat associated petition, VoIp provider Skype has asked the Fcc to apply the Carterphone decision of 1968 to the cellular phone industry, effectively forcing the cellcos to allow outside devices and applications to associate to their network.




The Carterphone ruling thought about at the time that At&Ts telephone network stopped at the phone jack, ending a monopoly on user hardware, and spurring a immense influx of new devices and technological innovations in the market.

The Skype appeal opens up a whole new can of worms for the Us cell phone industry, bringing them to the forefront of the grass roots Net Neutrality debate. In his paper Dr. Tim Wu details the techniques used by the cellcos Verizon, Sprint, At&T, and T-Mobile, to limit buyer entrance to devices and applications such as WiFi, VoIp, Internet browsing and more.

Cell phone fellowships in the Us not only operate the communal airwaves they have been entrusted with, they also sell the tool that is used to associate to their networks, much like At&T did before the Carterphone ruling. They operate entrance to their networks by whether disabling the Sim chip on the phones they sell, effectively locking it to the network, or by requiring cell phones be registered with the carrier network straight through their Electronic Serial number (Esn).

Strict operate of services allowed on the American cellular networks has stifled developers and impeded the amelioration useful applications, severely limiting competition and buyer choice. VoIp over WiFi connections, developed Gps features, Bluetooth wireless capabilities, and the amelioration of developed Sms applications are just some of the technology that has at one time or an additional one been hindered by the Us cellular industry.

By ruling in favor of Time Warner, the Fcc sided with the big boys, and rightly so. Consumers should be able to choose from a wide range of applications, together with VoIp, if it is technologically feasible. For a assistance provider to deny them that, simply because it doesn't benefit the carrier, is not only non competitive, but somehow, just un-American.

Skype has also asked the Fcc in its appeal to reconsider a formula to create transparent and neutral standards in the cellular industry, possibly something like the Ieee standards committee that has worked so well for wireless networking. Sounds great! Developers and expedient manufacturers could work together to raise competition and technological innovation, ultimately with great benefit to the consumer.

Obviously, this is not something that the Us cellular industry would want, and would no ifs ands or buts marshal all of their considerable resources in opposition. A task of this magnitude would also be an great undertaking for the Fcc, and could conceivably lead to yet an additional one level of bureaucracy.

If it is truly the mission of the Fcc to raise competition, new technology, and to safe buyer ownership as the Twc decision implies, then there is a golden opening for them to do just that in the appeal from the wee guy, Skype. As guardian of the people's transportation systems and the communal airwaves, to apply the Carterphone principals equally to all the players in the Telecommunications industry would seem, to me at least, to be a no brainer.

The Fcc, Twc, Skype, And The Cellular commerce

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