Apple

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.

A year after iTunes began offering music without copy protection software from EMI, Apple is in discussions with the other three top recording companies about acquiring DRM-free songs, according to two music industry sources.

The talks are still preliminary and no deals have been finalized, but one source said one of the major labels is close to a final agreement. Rumors have been swirling on the Internet for a week that Sony would soon be offering music without the controversial digital rights management software. My sources could not confirm this.

Spokespeople for Apple and the major labels declined to comment.

Should the deals get done, the songs offered by Apple's iTunes would no longer be restricted to playing on Apple devices, such as the iPhone or iPod. This has been one of the main criticisms of iTunes music for a long time. Apple says the music labels are the ones that force Apple to adopt DRM. Music insiders say Apple has long dragged its feet about getting unprotected music. Right now, Apple uses the proprietary DRM scheme, FairPlay, to lock down its music.

Talks with at least two of the labels have taken place on and off for several months, said the sources. They cautioned that there's no guarantee Apple and the labels can close the deals. But if iTunes is successful in acquiring the rights to sell unprotected music from Universal Music Group, Warner Music Group, and Sony BMG, the deal could help bolster iTunes' dominant position in digital music, as well as send competitors scrambling to find something new to differentiate themselves.

In the past year, the four top recording companies have been moving away from DRM--at least with other music services. In that time, companies such as Amazon, MySpace Music, and Napster have all begun selling open MP3s. MP3s are the format used to compress music files. Universal Music is expected to soon announce that the label is licensing MP3s to Microsoft for Zune. EMI and Warner already have DRM-free deals with Microsoft.

The marketing efforts of these Apple rivals have played up the idea that their music is unencumbered with DRM.

Also in the past year, technological shortcomings of copy-protection software have generated a lot of public scrutiny. As some iTunes competitors have exited the market, they have taken their DRM music with them.

This year, MSN, Yahoo, and Wal-Mart outraged some customers and consumer groups by announcing they would stop issuing keys for their DRM-protected songs. This meant the music would be prevented from being transferred to an owner's other devices.

Eventually, all three music services reversed their decisions, but it convinced DRM critics that DRM software never truly surrenders control of music to a buyer. While it's inconceivable to think that Apple would ever stop issuing DRM keys, it's absolutely possible.

CNET News reporter Ina Fried contributed to this report.

See also:
• Wal-Mart to carry iPhone after holidays?