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April 3, 2009 4:12 PM PDT

FCC pressed on iPhone Skype, tethering apps

by Dawn Kawamoto

Correction 5:15 p.m. PDT: This story initially misstated the author of the letter where quoted. It is the Free Press.

An advocacy group on Friday called on the Federal Communications Commission to require wireless carriers to allow consumers access to Skype via smartphones, as well as the ability to connect their devices to the Internet through tethering applications on their cell phones.

(Credit: Apple)

The Free Press, in a letter to acting FCC Chairman Michael Copps, expressed concern that wireless carriers were not abiding by the FCC's Internet Policy Statement.

Earlier this week, eBay's Skype made a VoIP application available for download from Apple's App Store.

But AT&T, Apple's exclusive iPhone dealer in the U.S., apparently wants to block the use of Skype on its 3G network, according to a report in USA Today.

In the USA Today report, Jim Cicconi, an AT&T public policy executive, said the telecommunications carrier had the right to forgo the facilitation of its competitors' services. He added Skype is considered a competitor.

The report further notes an Apple spokeswoman, Jennifer Bowcock, indicated the device maker limits third-party Internet phone applications for the iPhone and iPod to Wi-Fi.

In its letter to the FCC, Free Press says:

For two years, we have followed your leadership in raising concerns that wireless service providers appear to be engaging in activities that go against the Commission's Internet Policy Statement by violating consumers' right to run applications, use services, or attach devices of their choice over their broadband connections.

Recent reports about application blocking again raise these questions. Regardless of whether any particular incident would be found in violation of the law, the lingering uncertainty surrounding consumer rights on the Internet indicates the need for the Commission to clarify its rules. To resolve any alleged ambiguity raised by parties in earlier proceedings, the Commission should confirm that the Internet Policy Statement applies to wireless service providers that offer broadband Internet access service, as has been acknowledged in prior proceedings and statements of sitting Commissioners. Furthermore, the Commission should request more information on the extent of the wireless providers' role in and their justifications for these widely-reported behaviors.

Free Press further notes the FCC should investigate the practices of wireless carriers for possible violations of the Internet Policy Statement, as it particularly relates to possible direct or indirect limits on consumers' ability to run applications and services of their choosing on their devices.

Dawn Kawamoto covers enterprise security and financial news relating to technology for CNET News. E-mail Dawn.
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by startouch April 3, 2009 5:03 PM PDT
YEAH WHERE HAS THE FCC BEEN? AT&T HAS BEEN TESTING THE LIMITS : OVERCHARGES ,USAGE LIMITS , MONOPOLY ON I-PHONE ,AND NOW THIS !! SOMETHING HAS TO GIVE?
Reply to this comment
by professionaladventurer April 3, 2009 5:34 PM PDT
What stupid arguments. Not sure how capitalism works? YOU purchase service bundles. YOU choice to enter into the relationship with the phone/service provider. YOU choose a 2 year contract it ATT and the iPhone. That's how it is, if YOU think it is unfair DO NOT ENTER INTO THE AGREEMENT.
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by Stormspace April 3, 2009 7:05 PM PDT
The problem with that is that it's Hobson's choice. Take it or leave it is never a fair option and AT&T isn't offering any other options for internet enabled phones, including phones that do not require a data plan to be purchased. Yet to use the WiFi on the phone they require a data plan. Why should we pay extra for something that doesn't tax their network?
by gte910h April 3, 2009 8:26 PM PDT
So here is why the FCC gets to regulate cell phone companies.

The entire phone system was created by MASSIVE subsidies, including a decades long monopoly granted to a company to build out enormous amounts of infrastructure, which AT&T is *still* reaping the benefits of.

Additionally, the phone company is a licensor of public airwaves. They implicitly acknowledge they submit to the rulings of the FCC when they purchase spectrum rights for a period of time from the people.

So in your worlds, AT&T, if you think being regulated for the common good, in a way you knew to be the case (see the common carrier rulings), don't sign up for spectrum in the US.
by Renegade Knight April 4, 2009 7:53 AM PDT
You are both right and wrong. Right in that AT&T can offer a service and if you don't like it you don't purchase the service. Wrong in that when I buy internet access I expect internet access for all applications that use the net. There you hit truth in advertising issues. Plus the internet stems from the government. Not AT&T. When AT&T gets to make money on something the government has allowed them to the government does get to say "if you are going to be an ISP you have to give folks full access".
by bradyme April 5, 2009 4:53 AM PDT
Well the Nokia 810 smart phone allows you to run Gizmo & Skype on it.. & a hole lot more. More like a mini lappy. They don't fringe on what you do with the phone. And the vent on capitalism.. yes.. they are the competitors.. lesse.. 10 bucks a month instead of paying the carrier a 69.00 a month.. sorry I think it would be a benefit to push service prices down.. in the name of capitalism. ;)
by 000502 May 12, 2009 3:05 PM PDT
No other carriers provide the services they do. Their is no alternative. What do you think we should do? Disconnect ourselves from the world? Maybe we should just take it like the slaves we are, or let ourselves be robbed? What do you suggest? What do ATT and other wireless telecom workers do to merit such high charges. I'll tell you, They sit on their butts and get paid. I wonder when they will form a union and get paid health benefits after they retire to further ruin the american economy? Who knows? Att hasn't changed their network for three years. No new coverage. I still can't get 3G in most of the cities I travel to small or large. Don't even think about 3G on the road.

Every single one of those dirty rotten pieces of filth overcharges me for their spotty unreliable service. Just when you think that it couldn't be any worse you look at their terms to see they have the audacity to try and tell me what services I can and cannot use.

ATT claims the reason they can't support tethering or an of the other numerous services they prohibit is because their network doesn't have the capacity. Well improve your network. It isn't the fault of the customer that they desire to do what services they can do at home on their phone their pc especially when carriers like ATT, verizon, sprint and others claim to have faster speeds over the others. What did they expect customers to think when they heard that? Did they think they would be excited to read plain text at 3G speeds? No! They wanted to be able to send movies and download files, quickly. If we all wanted to just read e-mails and view plain text websites why bother with 3G anyway?

FCC put these dirt bags in their place!
by why do i need a name? April 3, 2009 6:10 PM PDT
And Apple made the decision to tie up with ATT for 5 years, so if you are pissed at anyone, you should be with Apple.

FYI - this is not uncommon. Try to get the NFL Sunday ticket on anything other than DirecTV. The NFL made a decision that it was in their interest to grant an exclusive to DirecTV, anyone else who isn't willing to pay that much, well.... too bad.

BTW, everyone should have known this was coming as soon as someone pried the control of what could be installed on phones on their network awawy from the carriers. They've been doing that since the earth was flat, and Apple took it away.
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by coryschulz April 3, 2009 11:01 PM PDT
Can't you just start your own phone company? Like you buy minutes in bulk and then resell them to other people? Can you just do the same thing with data packages? Maybe after the 5 year agreement Apple will start selling their own packages. They'd make a killing. I could see paying my phone bill on iTunes. That'd be awesome.
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by dbrohamTV April 4, 2009 7:17 AM PDT
that's exactly where Apple is going..you nailed it ;) some combination of MobileMe and iTunes Store will eventually sell air time
by libertyforall1776 April 3, 2009 11:27 PM PDT
A private company can offer what services and contracts they want. We as consumers are free to choose other companies' services and contracts instead. That is how it works. Nothing to see here with the FCC, move along, move along.
Reply to this comment
by Renegade Knight April 4, 2009 8:09 AM PDT
True within limits. If I resell something the government invented, gavme me rights to like Radio spectrum, and Internet the Government can set the rules. In addition some businesses are worth regulating because of their sheer importnats. the land line business was one. As Cell Phones take that over the government really needs to start working to force solutions to key problems that they didn't even consider when Cell phones were a luxery item.

Now if you want to talk MP3 players you are 100% right. Buy what works, don't buy what doesn't and the only regulation needed is what it takes to keep it safe as a device.
by mickeymjay April 4, 2009 7:31 AM PDT
I think that AT&T should allow any application that is available through the App store since it is a Apple IPhone.

I also think they should force Verizon to remove there block on phones so that the users can use 3rd party GPS programs.
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by mpitarevic April 4, 2009 10:49 AM PDT
For us in Europe. Interesting experience.
But Regulatory Agency protect cusomers rights. It has to be more regulation in "public" servise.
It is not take it or leave it. It has to be some common rules and monitoring on such important issue as electronic communication and services.
We don't believe in self regulatory model, look what Finance industry in USA did to whole world economy. It was been also "take it or leave it".
Maybe I am wrong but AT&T has to allow use but put some additional fee for it. But not allow or allow a part of Interenet services, what is difference on China blocking part of Internet. For us in Europe it is the some practice: once it is in private company interest and other is the State of Chine. But who is suffering: The User!
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by gerrrg April 4, 2009 12:32 PM PDT
I went to the Skype website, and saw that it had the G1 phone listed as compatible with the Skype software. Interesting. Too bad I don't call overseas.
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by armen2772 April 4, 2009 12:52 PM PDT
This is a lame way of thinking. The progress is made by those you break the rules and make life better. With your thinking we would have been living in stone age. Only stupid play all by the rules and don't consider alternatives.
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by marvin25 April 5, 2009 2:21 PM PDT
You have one problem which ATT doesn't have the capacity on their system to handle the additional volume and that is TOS state that you can't stream anything on their 3G network. With the IPhone all they are saying we don't have the capacity to handle the Skype volume of the system. Get with ATT system is on fumes and it is being required to put in bandwidth in order to have the economy move ahead. As fast as their additional bandwidth is put in it is being absorb by one ISP and they can't stop it. So the bottom line they have no capacity and accept the fact that they had to do it. This is also why they are limiting use of 3G network as all their bandwidth is absorbed by one ISP which is not cable or telecoms. They are required to supply them with all the bandwidth that they required. So no matter what you say they just don't have the bandwidth to do anything as they have to supply to this one ISP period. By the way this ISP is one of the biggest in the US.
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by nonoteric April 5, 2009 9:17 PM PDT
This is the way things will be with new technologies utilizing older technologies that people are making money off of.
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by T509 April 6, 2009 6:21 AM PDT
Hi there, have a look on that french post (automatically translated by Google)

http://translate.google.fr/translate?prev=_t&hl=fr&ie=UTF-8&u=http%3A%2F%2Fwww.sosiphone.com%2Fblogiphone%2F2009%2F04%2F05%2Fvoip-sur-mobile-un-tournant-pour-les-operateurs%2F&sl=fr&tl=en&history_state0=&swap=1

Enjoy
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by libertyforall1776 April 6, 2009 11:21 AM PDT
So why doesn't AT&T just offer their own VoIP iPhone application, hopefully SIP based?!
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by robwrightcelladvocate April 6, 2009 11:35 AM PDT
Hi,

Being a long-time advocate of cheaper cell phone services, Skype has never interested me on a smartphone, the download process, wait for wifi access, o/s issues etc... I found a very simple way to call long distance on cell phones with no pre-paid, recharge type stuff, signup for free, and you get low cheap rates. You dont need skype on the iphone try out www.cellLongDistance.com
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