Tuesday’s FCC consent decree where Verizon Wireless agreed to pay $1.25 million...
Tuesday’s FCC consent decree where Verizon Wireless agreed to pay $1.25 million for violations of 700 MHz C-block open access rules (CD Aug 1 p 18) points to larger issues for the carrier, Guggenheim analyst Paul Gallant wrote investors the…
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next day. Verizon Wireless is unique in that the company bought the 700 MHz C-block through most of the U.S. in 2008, giving it a big chunk of spectrum but with open access conditions attached. “VZW could have a have a harder time fending off apps threats,” Gallant wrote. “In late 2011, Google complied with VZW’s request to exclude Google Wallet from Samsung’s Nexus Galaxy phone. But an Obama-appointed FCC could still press VZW to enable Google Wallet even as other wireless carriers (freed from net neutrality obligations) were able to deploy their own mobile payment service (Isis) and exclude Google Wallet from their networks.” Verizon Wireless may also have a harder time capitalizing on revenue streams open to its competitors, Gallant said. “Recent press reports suggest AT&T is considering charging customers who want to use iPhone’s FaceTime app over cellular frequencies,” he said. “Such fees would likely face a net neutrality challenge at the FCC.” But House Commerce Committee Ranking Member Henry Waxman, D-Calif. was pleased with the action. “Consumers deserve the right to use the wireless device and applications of their choosing and innovators need rules of the road to continue to invest in new products and services,” Waxman said. “The FCC must continue to remain vigilant in enforcing its rules that protect consumers and promote innovation and competition online.” The commission “sent a strong signal to the market that companies cannot ignore their pro-consumer obligations,” said Free Press Policy Director Matt Wood. “Unfortunately, the fact that Verizon worked to block these apps in the first place is a clear indication that wireless providers have a strong incentive to discriminate against certain content and applications, an incentive that continues to threaten online freedom and innovation."