Artificial scarcity produces monopoly profits. Especially in markets without (real) competition. So AT&T (T), one of a handful of landline and mobile broadband providers in the US, will cap residential DSL and charge for overages. The cap: 150 GB or 250GB depending on the plan; the penalty, $1 for 5 GB.
“… the heavy user of today is inevitably the standard user of tomorrow.”
“There’s several questions reporters and consumers should now ask, such as whether such overages would be possible in truly competitive markets, or if AT&T has any raw data proving this kind of action is truly necessary.”
“The over-arching question however is: does AT&T scale these caps and overages to accommodate for the dropping cost of bandwidth and hardware moving forward, or do they bend to inevitable investor pressure and continually tighten the metered billing noose?”
Skype voice calls, even large conference calls, don’t use much tube. With more than 40% of all Skype calls including video, look at your webcam. Video calls and screen sharing chew up the bits. Group video calls, more so. High quality and Hi Def video will burn through your artificially set quota before you know it.
On the wireless side, Verizon and AT&T’s new data prices charge $7.50 to $12.50 per gigabyte. A movie can easily run 0.7 gigs.
Times are tough in the United States but it’s good to know our elected congress can count on big telephone companies for contributions and a “pro-business” point of view.
I don’t know why I’m flabbergasted; I should know better. Maybe I’ve been swept up in pride over Tunisia’s and Egypt’s fight for Democracy over entrenched power. And then Hillicon Valley reportsa GOP briefing memo lumps Skype and Google in with carriers when it comes to net neutrality. The House Energy and Commerce Subcommittee on Communications and Technology is bringing in the FCC commissioners to defend net neutrality on Wednesday. Their congressional fact-finding asks “Network Neutrality and Internet Regulation: Warranted or More Economic Harm than Good?”
Sara Jerome quotes the memo: "If the mere threat of Internet discrimination is such a concern, and if the FCC has done no analysis to demonstrate why one company has more market power than another, why would discrimination by companies like Google or Skype be any more acceptable than discrimination by companies like AT&T and Comcast?"
You can watch the hearing Wednesday morning, 9:30AM Eastern, on the Republican committee’s web site. Subcommittee chair Greg Walden (Republican from Oregon east of the Cascades) will be your host. From a December 2010 press release: “More troubling than the substance of the network neutrality rules are the legal theories underpinning them. If left unchallenged, this power grab will allow the Commission to regulate any interstate wired or wireless communication on barely more than a whim. For all these reasons, we plan to look at all legislative options for reversing the decision. We also plan to hold a series of hearings early next year on the substance, process and claims of authority underlying this proceeding.”
No pre-hearing public positioning from the Democratic members of the subcommittee.
America’s incumbent telecom industry spent more than $90 million lobbying congress last year: $49.5 million from telecom services and equipment companies that sell to carriers, and $47.6 million from telephone utilities. This doesn’t include money spent on indirect persuasion, like issue advertising and astroturfing. Despite the partisan framing of this briefing memo, direct industry spending favored whichever party controlled congress.
1. Don’t log out.Skype’s authentication server, the one that lets you log in, had some problems earlier today. Mostly fixed but still some problems with Skype.com. via Skype’s Heartbeat blog.
2. SMS sending problem. “Some of you may have problems sending text messages (SMS) with Skype at the moment. If a message fails, you’ll see a notification in Skype, and you won’t be charged for the message. We’re sorry for the inconvenience.” via Heartbeat. Wishlist: Online numbers receiving SMS. Wishlist: competitive prices for SMS.
3. Seven years and still no Skype.com phone number. Dan York, who blogs about telephony and frequently blogs about Skype, is the lucky recipient of customer service calls referred by two credit card companies. I suppose Skype is not ready to staff a call center for 600 million customers in every language on earth.
6. Tom Keating reviews the In Store Solutions FREETALK Connect Skype PBX. “Overall, I was pretty impressed with the FREETALK Connect and would not hesitate to recommend it to SMBs looking for a feature-rich IP-PBX that is easy to maintain and doesn’t break the bank.”
Automatically route these alerts to third-party services I choose. Companies can offer alternatives to my operator’s gouging. Maybe prepaid SIM cards at a location near me. Over-the-top Wi-Fi telephony like Truphone or Skype. Customer advocacy services. Class action lawsuit lawyers. Your choice.
The technology is easy. Pubsubhubbub. Or even email. Just structure the data and make it easy for consumers to opt-in/out, and select your watchdog service.
Does the FCC and Congress want America to benefit from competition? Inform telecom customers and fuel a vigorous market at the moment of pain.
My family crossed the border for dim sum last week. From Ferndale, Washington, to Delta, British Columbia, a half-hour drive, my iPhone’s Maps app pulled 8 MB of photos and location data. My international roaming fees for the two hours were about $20.
AT&T loathes Skype. Skype costs them international calling money and changes consumer expectations in ways mobile carriers cannot respond. So AT&T forbid Apple to permit Skype voice calls over the wireless network. It worked for two years. Now that barrier is down, how else can they slow or stop Skype? To bring a humble Skype to the negotiation table? Three anticompetitive strategies:
The Parity Strategy: Get government to treat Skype like a fat incumbent landline phone company.
e911. Emergency dialing is expensive, unreliable with softphones like Skype, and different in every country. Skype says it is not a phone company, so the US FCC should not require Skype to offer emergency dialing. The incumbents would love to saddle Skype with this requirement.
Assistance to the Hearing Impaired. Require Skype to offer interpreters for the deaf.
Skype and US, State and Local Phone Taxes. Lobby for Skype to collect federal, state and local value added taxes and fees. Blur the distinction between Skype and phone companies. Complicate Skype’s prices and products.
Metro/State/Provincial Regulation. Encourage non-Federal governments and agencies to entangle Skype in hearings, compliance procedures.
Administrivia. Phone companies file detailed reports with state and federal regulators. In triplicate. Ask local agencies to swamp Skype with requests for information.
Attack Skype’s Brand.
Pollute Skype’s Security Brand. Skype has a reputation for being very secure, relatively spam free, and a safe way to communicate. Invest in academic challenges to Skype security. Publicize every stalker, lawsuit and robocaller. Host "ethical hacker" contests and spread the results.
The Weapon of Evildoers. "Criminals and terrorists use Skype." Host conferences for police and intelligence agencies on threats posed by Skype. Urge them to compel Skype to give up encryption. Force Skype to rebut law and order politicians.
Reframe Net Neutrality. Net neutrality improves Skype user access to networks. Supporters of net neutrality use language like freedom and choice. Instead, blame Skype for slow pipes, limited coverage and congested bandwidth.
Sponsor Class Action Suits. Pit dissatisfied customers against Skype. Force Skype to invest in lawyers, not engineers.
Start the Skype-Killer Adventure Fund. Confuse Skype’s customers with a market full of Skype clones. Pay peanuts to attract entrepreneurial talent to your war on Skype.
Raid Skype Talent. Half of Skype’s employees are paid Eastern European wages. Aggressively recruit them, stalling Skype’s projects.
Repeat Worldwide. Share with telcos in every market a template for attacking Skype. Make Skype struggle in every country.
Ruth Milkman, Chief Wireless Telecommunications Bureau Federal Communications Commission 445 12th Street, SW Washington DC 20554
Re: AT&T Response to Wireless Telecommunications Bureau Letter, DA 09-1737 (July 31, 2009); RM-11361; RM-11497
Dear Ms. Milkman:
On behalf of AT&T, I am writing to provide you with an update to AT&T’s August 21, 2009 response to the Bureau’s questions about the Apple iPhone. In our response, we explained that AT&T currently offers a variety of devices that enable VoIP applications to make use of our wireless network (including our 2G and 3G capabilities) and the devices’ Wi-Fi connectivity. We further explained that the iPhone currently supports VoIP applications that make use of the device’s Wi-Fi connectivity, but VoIP capabilities were not available on the iPhone for use on our wireless network. We also stated that we were taking a fresh look at the issue and would promptly notify the Commission of any such change in our policies. AT&T has completed its review of the matter and today we informed Apple that, effective immediately, AT&T consents to Apple enabling third-party VoIP applications for the iPhone that use our wireless network, including our 2G and 3G capabilities.
If you have any questions or need additional information, please do not hesitate to contact me.
Sincerely,
Robert W. Quinn, Jr.
cc: Chairman Julius Genachowski Commissioner Michael J. Copps Commissioner Robert M. McDowell Commissioner Mignon Clyburn Commissioner Meredith Attwell Baker
Guest post by Mark Poole, member of the Skype 5.X Discussion
Skype CEO Josh Silverman joined FCC Chairman Julius Genachowski, Free Press’s Ben Scott and Verizon government affairs VP David Young for two hours at the Brookings Institute today. These are Mark Poole’s notes from that panel.
This webcast spotlighted the issue of access. When the discussion turned to open access via the cell network, someone used the description dumb pipe. It’s not the copper line, fiber optic line or the wireless signal flowing between cell towers that is dumb. The leadership of companies that provide these pipes is dumb.
"The exact expectations you have of your PC, you’re going to have of your mobile phone." — Josh Silverman
The guy from Verizon really gave a glimpse into the thinking of wireless providers. He wanted on one hand to say they applaud openness to the Internet but then offer excuses why a program like Skype might not work over his network.
Rather than plan for a robust system that will handle demand today and five years from today and at the same time charge a fair price for use of their pipe, they want to try to compete with companies that offer web stores to sell applications. He described Verizon Widgets and the FiOS cable offering. He spoke of value add services Verizon can provide developers who sell through the Verizon store. Verizon’s greed may be their undoing.
Silverman did a good job of diplomatically pushing Verizon to move to more open access. The potential problem with open access and Verizon along with other cell providers will be if they continue strong arm tactics when it comes to plans they offer. Charging ten to twenty bucks for monthly unlimited texting and forcing customers into high monthly minute plans, so they can get promotions like Friends and Family from Verizon, run contrary to where we should be today. It’s all about access without regard what we do with that access. This is another example of dumb company leaders not dumb pipes.
Silverman presented the notion that open access for all will allow rapid innovation to continued. He pointed out how the cycle time for new technologies, disruptive technologies was getting shorter and shorter. He tried to stroke the ego of the cell providers by telling the Verizon rep that what they were doing by providing access was not really providing a dumb pipe but instead a complex job.
From my perspective the public interest won out completely. One of the other participants said the speech by the FCC chairman (.pdf) today was a paradigm shift. He looked back to two other shifts and differentiated today’s by saying that the previous shifts were more about the rights and ultimate profits of a few instead of policies that favored an individual’s rights and use of the Internet. Today’s speech was clearly aimed at keeping access to the Internet open and with as few speed bumps as possible when it comes to high speed access.
FCC Chairman wants network neutrality, wired and wireless, Nate Anderson. "FCC Chairman Julius Genachowski waded directly into the network neutrality fight today, launching a new proceeding designed to turn the FCC’s existing "principles" into "rules"—and to add two more. The rules would apply equally to wired and wireless connections."
"Furthermore, plans(unless specifically designated for tethering usage) cannot be used for any applications that tether the device (through use of, including without limitation, connection kits, other phone/PDA-to computer accessories, BLUETOOTH® or any other wireless technology) to Personal Computers (including without limitation, laptops), or other equipment for any purpose."
"Accordingly, AT&T reserves the right to (i) deny, disconnect, modify and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited"
Fine print in your contract extends AT&T control into all the devices you use.
Mobile Net Neutrality says neither your handset maker nor your wireless carrier should alter your service based on the content or endpoints of your communication. You wouldn’t let your ISP dictate what software goes on your PC or which web sites your surf. Why should your mobile operator have that power?
Yet Apple supports AT&T’s ban on VoIP in theory, and full Skype in practice.
Mobile Carterfone says mobile customers should be free to connect to mobile voice and data services without a mobile carrier approving or dictating the device. You wouldn’t let your ISP dictate what PCs or printers you connect to your DSL or cable modem. Why would you give your mobile operator that power?
Yet Apple supports AT&T’s upcoming iPhone tethering fees.
Tethering fees give AT&T the power to approve or disallow your use of your phone as a modem. This is unheard of in most of the world.
AT&T is expected to add a surcharge of 30% to 50% for the privilege of using your existing device and bandwidth you already bought.
Tethering fees feel strange. The charges should stop at the first device, the connecting device. An operator should charge for primary connectivity, not downstream connections.
What other imaginary services could your phone company bill?
Cell-handoffs. Get the first 5 free and then 10 cents a go. Neil Stratford
Secondary listening. Special speakerphone detection modes to charge you extra for other people overhearing the call. Neil Stratford
Voice by the word. Charge for voice the way they charge for SMS. 10 cents for 15 words.
Volume detection. Shouting must mean the message is very important so charge more for louder conversation. mort
Astoundingly great, ubiquitous, pervasive, cheap, uncensored, clean, accessible, fair and market-driven broadband might be possible with a national plan. A former commissioner, Levin understands the deeper tech, social, economic and political forces at play, and the players. Skype’s Chris Libertelli told FierceVoIP last year that "Levin would make an excellent FCC chairman." (He didn’t get the job.) Blair’s a nice guy who knows the lyrics to Winnie the Pooh songs.
The first months of the Obama administration’s broadband efforts focused on quick, temporary, job creating projects. In his new role, Levin focus on "the whole ballgame." The video is from January 2009′s State of the Net Conference where he discusses some of the gaps a national broadband plan could discover and fill.
Great broadband makes Skype better, so this appointment is a hopeful portent.
Michael Copps, Vivian Schiller, Susan Crawford to Keynote Free Press Summit
Event to highlight public interest policies on Internet, journalism and public media
WASHINGTON — The Free Press Summit: Changing Media in Washington, D.C., tomorrow will feature keynote speeches by Acting Federal Communications Commission Chairman Michael Copps, Vivian Schiller, president of National Public Radio, and Susan Crawford of President Barack Obama’s National Economic Council.
What: Free Press Summit: Changing Media When: Tomorrow, May 14, 2009, 9:30 a.m. — 5 p.m. Where: Newseum, 6th St. and Pennsylvania Ave., Washington, D.C.
The one-day event will highlight the policies to reshape the future of the Internet, journalism and public media. Free Press will also release a new book, Changing Media: Public Interest Policies for the Digital Age. The full agenda is included below.
9:45 a.m. Welcome to the Free Press Summit
Josh Silver, Free Press
Alberto Ibargüen, The John S. and James L. Knight Foundation
10:15 a.m. Changing Media: Public Interest Policies for the Digital Age
Free Press is a national, nonpartisan organization working to reform the media. Through education, organizing and advocacy, we promote diverse and independent media ownership, strong public media, and universal access to communications. Learn more at www.freepress.net
Mobile Carterfone – freedom to use the device of your choice on a mobile network
Mobile Net Neutrality – US mobile carriers are blocking Skype voice calls from data services. See iPhone and Windows Mobile store policies written by carriers.
Net Neutrality – ISPs banned Skype. Should that be OK?
P2P Freedom – As Skype shows, p2p has legitimate uses yet copyright industry groups draft laws banning the technology.
Rural Access – Skype users needs cheap, capacious, ubiquitous, expandable broadband to the home and office.
Telco Antitrust – The big mobile, landline, and cable carriers are very profitable, even in a horrid economy. Evidence of undue market power?
Privacy – The US government is funding research to intercept Skype calls and uncover your Skype contacts
E911 – When does Skype become responsible for helping people call emergency services?
Unwanted Attention – Telemarketing, spam, spim, spit – we hate it all. What is government’s role?
Carbon Footprint – Can Skype-like communication lower our personal and national environmental impact? What can Skype engineers do to lower it further?
Review every major FCC decision since the 1996 Act and reverse those that failed to promote broadband competition, openness and access. Congress should aid this process with a series of oversight hearings.
Develop a data-driven standard to identify local areas where broadband providers are abusing their market power, and use the tools in the 1996 Act to promote competition.
Expand and codify the FCC’s "Internet Policy Statement" into permanent Net Neutrality rules. Congress should pass a Net Neutrality law to place these protections in the Communications Act.
Reclassify broadband as a "telecommunications service," which will allow the FCC to promote competition by reinstating open access rules where appropriate.
Transition the Universal Service Fund from supporting telephone service to supporting broadband infrastructure. Congress should aid this transition through oversight and legislation to provide a clear path for FCC action.
Produce an honest assessment of whether broadband is being deployed to all Americans in a timely fashion, as required by the 1996 Act.
Conduct a thorough review of policies governing competition and pricing in the "special access" and "middle-mile" or "enterprise" markets — the broadband lines that connect cell phone towers and local area networks to the Internet.
Open more of the public airwaves to unlicensed use and promote shared spectrum for both low-power urban and high-power rural uses. Congress should instruct the FCC and the NTIA to identify spectrum that could be utilized.
Offline for a the afternoon, the better to pay attention and mingle.
Skype is what iChat could have become with funding and management support. Although we’re still waiting on multiparty video.
Skype Lite For iPhone OS 3, later this year.
The best Skype experiences need push and sync services you’ll find in 3.
Verizon buys Skype.
Or another US mobile carrier. 0% growth in wireless minutes, 20% growth in data; time to sell services that drive data growth.
Three US carriers will sell low end Skypephones this year.
Maybe if carriers won’t spend a few billion to buy Skype, they’ll partner to build data plan sales and consumption.
Skype asks the new FCC to force mobile Carterfone rules on US carriers.
A new administration could be very interested in the political appeal of consumer-friendly rules.
Google buys Skype.
Would complement Google Voice, Goog411, Google Talk, Android and all the other realtime conversation projects, filling in gaps and serving non-Google customers. Skype’s new evidence-based management culture might fit too.
Cisco buys Skype.
Telepresence at the high end, WebEx in the bigco, Skype everywhere else.
Skype Lite now supports video.
I wish. Completely depends on the handset, on features turned off/on by carriers, on the quality/capacity of 3G.
Rupert Murdoch buys Skype.
Skype already partners with MySpace, a NewsCorp company. Could Skype branded mobile and desktop tools help sell other NewsCorp television, sports, business, and games content?
Skype launches DENIM, a new video codec for mobiles.
Skype depends on On2 for video codecs. How long before Skype decides it’s better to own than to rent? Skype’s SILK codec proves they’ve decided that before.
Microsoft buys Skype.
MSN and Windows Live Messenger are both insanely popular IM products, but neither of the ad-supported products convinced people to use voice, video, or PSTN features. After Microsoft buys Yahoo!, they may have enough loose cash to pick up Skype. Skype has a newly upgraded client for Windows Mobile.
Skype mobile clients support video calls.
An oft requested feature.
Nokia buys Skype.
Just a long ferry ride from Tallinn. It would explain Nokia’s Barcelona announcement to ship smartphones with Skype later this year. Skype has mobile products all three Nokia OS’s: Symbian, Maemo/Linux, and java.
Skype becomes location-aware.
Sort those contact lists by proximity. Update mood messages automatically by zone ("leaving the office"). Filter directory search results.
The new Matt LeBlanc look-alike is filling a post that affects Skype‘s future in the US. It’s a proper courtesy to greet the new nominee.
SKYPE WELCOMES NOMINATION OF JULIUS GENACHOWSKI AS NEW FCC CHAIRMAN
WASHINGTON, March 3, 2009 – Josh Silverman, Skype’s President, issued the following statement regarding the nomination by President Barack Obama of Julius Genachowski as the new Chairman of the Federal Communications Commission:
"Skype is pleased that President Obama has nominated Julius Genachowski to Chair the Federal Communications Commission. As a trusted member of the Obama technology policy team, we look forward to working with Julius as the FCC establishes policy priorities. The success of the Obama campaign clearly demonstrated that the Internet is a platform for empowering citizens and disrupting existing ways of doing business. Likewise, change is coming to the FCC and we are looking forward to working with Chairman Genachowski to put innovation policy to work for all Americans. We welcome Chairman Genachowski to his new responsibilities and to a future defined by more innovation, faster broadband, and lower phone bills."
The US spends hundreds of billions of dollars annually on telecom, all of it regulated by the Federal Communications Commission. FCC policies affect consumer choice, market consolidation, rural Internet access, the rules of mobile competition, availability of spectrum to citizens.
No wonder figurative bowers of flowers are being heaped upon Chairman Nominee Genachowski from all affected.
The Electronic Frontier Foundation (EFF for short) petitioned the U.S. Copyright Office to allow people to put whatever software they want on their mobile phones. This would permit working around copy protection.
Computer programs that enable wireless telephone handsets to execute lawfully obtained software applications, where circumvention is accomplished for the sole purpose of enabling interoperability of such applications with computer programs on the telephone handset.
Apple doesn’t like this, saying the petition is an attack on the iPhone business model.
Apple is opposed to the proposed Class #1 exemption because it will destroy the technological protection of Apple’s key copyrighted computer programs in the iPhone™ device itself and of copyrighted content owned by Apple that plays on the iPhone, resulting in copyright infringement, potential damage to the device and other potential harmful physical effects, adverse effects on the functioning of the device, and breach of contract. The proponents of the exemption have also not satisfied their burden of proof of showing harm to non-infringing uses of the copyrighted works protected by the technological protection measures on the iPhone.
Specifically, it seeks through the proposed exemption to clear the path for those who would hack the iPhone’s operating system so that a proprietary mobile computing platform protected by copyright can be transformed into one on which any third party application can be run, without taking account of the undesirable consequences that would ensue from the transformation. EFF’s submission offers no proof that this proposed transformation would actually increase innovation or investment in creative works…
In other words, if just anyone can download just any software without Apple’s approval, then Apple’s stranglehold over the iPhone software market would be broken.
The Mozilla Foundation likes the exemption, saying iPhone users should be free to use Mozilla’s browser instead of the one MicrosoftApple includes (consumer choice and control). They also say the exemption promotes open access to the Internet. When users cannot choose their browser software…
The choice in access means is equally important to an open web. today, all consumers do not have a lawful means of exercising their choices, because some devices are tethered to particular software chosen by the hardware vendor. As a result, it limits the means by which users can access and use the Internet. When this happens, consumers’ experience of the internet – an open and public resource – is artificially constrained and unnecessarily defined by the hardware vendor because users are required to use that particular software in order to access and use the Internet.
Paraphrasing, when one company controls your browser, that company controls what you see, how you see it, and how you participate. You may trust that company, but you shouldn’t have to.
Skype supports the exemption [full text below]. Skype says the freedom to install software powers the freedom to use your phone with different mobile carriers. They say copyright law shouldn’t be used to keep people from switching telephone networks (locking) or from using the software they want (blocking).
And there’s Skype’s obvious self-interest:
Copyright law should not interfere with a user using his or her phone to run Skype and enjoy the benefits of low- or no-cost long-distance and international calling.
The comment period ended 2 February 2009. Next steps are Copyright Office public hearings in the next few months and published decisions later this year.
Full text of Skype’s comment on the petition below:
Before the COPYRIGHT OFFICE LIBRARY OF CONGRESS Washington, D.C. In the matter of Exemption to Prohibition on Circumvention of Copyright Protection Systems for Access Control Technologies
Docket No. RM 2008–8 COMMENTS OF SKYPE COMMUNICATIONS S.A.R.L.
Skype Communications S.A.R.L. (“Skype”) hereby files these comments in support of the proposals to exempt from the prohibition on circumvention of access control technologies computer programs that enable individuals to use software applications of their choice on wireless telephone handsets and that enable individuals to use such handsets on wireless networks of their choice (Classes 5A–5D in the Notice of Proposed Rulemaking[1]). As discussed below, allowing consumers to use devices and software applications of their choice on wireless networks maximizes consumer choice and encourages innovation, and should not be restricted by copyright law.
Skype is a global software company whose software application allows its users to communicate with individuals around the world, either for free (when communicating with other Skype users) or at very low rates (when calling PSTN phone numbers). In less than six years since founding, Skype has revolutionized the voice calling market, giving hundreds of millions of users[2] an easy way of staying in touch with friends and loved ones and reducing their long-distance bills (particularly international-calling bills). The Skype software client marries the traditional appeal of voice calling with additional features such as video calls, instant messaging, file transfer, online payment, and so on. Like many software applications that use the Internet, Skype first became popular being used on wired broadband networks; however, its wireless software client is increasingly popular as wireless users seek the benefits offered by Skype including cheaper calls, online presence detection, etc.
Skype strongly supports open wireless broadband networks; i.e., wireless networks on which users can attach (nonharmful) devices of their choice (“no locking”) and use software applications of their choice on such devices (“no blocking”). In February 2007, Skype filed a Petition for Rulemaking[3] with the Federal Communications Commission (“FCC”) asking that wireless broadband networks be operated under these openness principles, in keeping with the FCC’s Broadband Policy Statement[4] and its seminal Carterfone[5] decision.[6] A few months later, the FCC adopted no locking and no blocking rules to a vital block of spectrum auctioned off for use by wireless broadband networks.[7]
Over the past several months, the nation’s wireless carriers have increasingly embraced the principles of open wireless networks — though their actions so far do not match their words. Wireless carriers and the handset manufacturers they strike deals with continue to employ various means to keep users from using devices and software applications of their choice — from terms of service to the software and firmware loaded on the handsets sold by the carriers. Where carriers and handset manufacturers allow the use of third-party software applications, such as Apple’s iPhone App Store (used on the AT&T network) or Google’s Android (used on the T-Mobile network), the carriers and handset manufacturers reserve the right not to permit the use of software applications that it deems harmful to its business. For example, while it is possible to install adaptations of VoIP applications on some smartphones,[8] carriers’ Terms of Service typically block more robust “end-to-end” VoIP products that use a wireless broadband connection rather than a narrowband connection that uses the carriers’ regular wireless voice minutes. The adapted versions of applications like Skype do not provide wireless consumers with the full range of innovative features that would be available if VoIP application developers were able to harness the full benefits of the wireless data plans that the consumers pay for.
Skype opposes any attempts to restrict the ability of individuals to use devices and software applications of their choice on wireless networks,[9] and, therefore, supports the proposals to exempt from the anti-circumvention provisions:
1. Computer programs that enable wireless telephone handsets to execute lawfully obtained software applications, where circumvention is accomplished for the sole purpose of enabling interoperability of such applications with computer programs on the telephone handset,[10] and
2. Computer programs in the form of firmware or software that enable mobile communication handsets to connect to a wireless communication network, when circumvention is accomplished for the sole purpose of lawfully connecting to a wireless communication network.[11]
These two classes of exemptions will ensure that copyright laws do not interfere with the no blocking and no locking open wireless network principles. Enabling wireless handset users to use their unlocked phone on a network of their choice and to use legally-obtained software applications of their choice on their handsets will ensure that they enjoy the benefits of choice and competition with respect to mobile software applications and handsets — not simply choice among wireless networks. Copyright law should not interfere with a user using his or her phone to run Skype and enjoy the benefits of low- or no-cost long-distance and international calling.
More broadly, users should be able to use their choice of devices and software applications on wireless networks rather than being limited to those devices and applications that are “approved” by the wireless carrier. Allowing end users to choose the devices and applications they use gives them access to a much wider array of devices and applications than would restricting their choices to those offered by wireless carriers acting as gatekeepers — particularly in instances where carriers restrict access to applications, such as Skype, that may threaten part of their business model. An end-to-end network, in which consumer choice is empowered, ensures that innovation occurs at the edges of the network where hundreds if not thousands of application developers and software manufacturers, rather than a handful of wireless carriers, can compete to meet consumer demand.
* * *
For the foregoing reasons, Skype supports the proposals to exempt from the prohibition on circumvention of access control technologies computer programs that enable individuals to use software applications of their choice on wireless telephone handsets and that enable individuals to use such handsets on wireless networks of their choice, i.e. Classes 5A–5D. Skype supports no blocking and no locking policies, and opposes any limitations on these wireless consumer empowerment principles that may arise from the DMCA.
Respectfully submitted,
SKYPE COMMUNICATIONS, S.A.R.L.
Henry Goldberg Devendra T. Kumar GOLDBERG, GODLES, WIENER & WRIGHT 1229 19th St., N.W. Washington, DC 20036 (202) 429-4900 – Telephone (202) 429-4912 – Facsimile Of Counsel to Skype Communications, S.A.R.L.
Christopher Libertelli, Senior Director, Government and Regulatory Affairs – North America SKYPE COMMUNICATIONS S.A.R.L. 6e etage, 22/24 boulevard Royal, Luxembourg, L-2449 Luxembourg
Dated: February 2, 2009
Footnotes:
Exemption to Prohibition on Circumvention of Copyright Protection Systems for Access Control Technologies, Docket No. RM 2008-8, 73 Fed. Reg. 79,425, 79,427 (2008).
Skype has over 400 million registered users worldwide.
Skype Communications S.A.R.L. Petition to Confirm a Consumer’s Right to Use Internet Communications Software and Attach Devices to Wireless Networks, RM-11361 (filed Feb. 20, 2007) (“Skype Petition”).
Appropriate Framework for Broadband Access to the Internet over Wireline Facilities, CC Docket No. 02-33, Appropriate Regulatory Treatment for Broadband Access to the Internet Over Cable Facilities, CS Docket No. 02-52, Policy Statement, FCC 05-151 (rel. Sep. 23, 2005).
Use of the Carterfone Device in Message Toll Telephone Service, 13 FCC 2d 420 (1968).
The Skype Petition remains pending at the FCC.
See Service Rules for the 698-746, 747-762 and 777-792 MHz Bands, Second Report and Order, WT Docket No. 06-150, FCC 07-132, at 88, ¶ 189–230 (rel. Aug. 10, 2007) (“700 MHz Order”).
The only exceptions to open wireless networks should be for devices that harm the network and for restrictions on the use of software applications that result from reasonable network management practices.
73 Fed. Reg. at 79,427, Class 5A.
73 Fed. Reg. at 79,427, Class 5C. Note that Classes 5B and 5D are almost identical to Class 5C and are treated as such in these comments.
Artificial scarcity produces monopoly profits. Especially in markets without (real) competition. So AT&T (T), one of a handful of landline and mobile broadband providers in the US, will cap residential DSL and charge for overages. The cap: 150 GB or 250GB depending on the plan; the penalty, $1 for 5 GB. 
Susan Crawford has my attention
Join the Skype 6.X Text Chat Room