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Skype Asks FCC to Open Cellular Networks

Milwaukee's_Best writes "Skype has just asked the FCC to force wireless phone companies to open their networks to all comers. Skype essentially wants to turn the wireless phone companies into just another network of the kind currently operated on the ground. This would require carriers to allow any phone to be used on their networks, and for any application. Users would simply purchase a voice or data plan (though these could easily converge into a data plan if VoIP calling is used) and then use the device of their choice to access the network of their choice. Think of it as network neutrality for cell networks. Given the competition that exists within the industry, is this needed?"

57 of 292 comments (clear)

  1. As a free market libertarian, I vote against this. by wasabii · · Score: 5, Insightful

    This is nothing but Skype trying to get the government to regulate a market for itself. If the cell provides saw business benefit in opening their network, they would do so. As it is now, they own the equipment because they paid to build it. They are free to do whatever they feel they can to capitalize on their investments. So as a humble user who wants to chat on IRC over a wireless carrier.... who am I to MANDATE to these sovereign owners any sorts of conditions?

    Bah to this proposal!

  2. go go go by User+956 · · Score: 2, Insightful

    Skype essentially wants to turn the wireless phone companies into just another network of the kind currently operated on the ground.

    Yes, and the kind currently operated on the ground are facing a dead-end business model.

    --
    The theory of relativity doesn't work right in Arkansas.
  3. Please regulate openness by elronxenu · · Score: 5, Insightful
    Sounds like a great idea.

    Skype should go first, by documenting their protocols and allowing 3rd party clients to connect to the Skype network.

    1. Re:Please regulate openness by wallior · · Score: 5, Insightful

      Completely agree. This request is disgustingly hypocritical. In Australia and UK (I think UK) Hutchison (3) will eventually used Skype for data calls across their network. You can bet that Skype won't be pushing for openness on these networks.

    2. Re:Please regulate openness by danamln · · Score: 2, Interesting

      the fcc should apply the same standard opening both networks and then maybe we can manufacture phones that recognize each other instead of needing a network at all. I can't wait for the day when my cell phone play six degrees of seperation to find the person I'm calling before acsessing any network.

  4. Cartel? by thesupermikey · · Score: 3, Interesting

    I'm I right in understanding that the way cell phone companies control their towers now, I to call it a cartel?

    Additionally, the cellphone makers are leasing public property (the airwaves) and building a fence around them to keep the public out (unless you buy a key / plan from them)

    Are these metaphors off base?

    --
    Mikey
    I've always been the kinda guy to fall for the girl dressed like an eskimo.
  5. "Network Neutrality"? I call BS by Scareduck · · Score: 4, Insightful

    "Network neutrality" in the case of the Internet is about customers' traffic getting the usual "common carrier" treatment. In the case of the Skype proposal, it's nothing less than an attempt to get something (access to cell towers and related equipment) for nothing (without having to pay for it). The writeup is both disturbing and misleading.

    --

    Dog is my co-pilot.

  6. Competition? by ShaunC · · Score: 5, Insightful

    Given the competition that exists within the industry, is this needed?

    Competition? As in where I get to choose from one of [Verizon|Cingular|Sprint], all of which charge mostly the same, and whichever one I pick, I'm either stuck with them for 2 years or stuck paying exorbitant fees to "fire" them and switch to one of their clones? I'm intentionally glossing over the prepaid services (Virgin Mobile, for example) because they tend to piggyback on other carriers' networks (Virgin is actually Sprint's network, so in essence if you use Virgin Mobile, you're really using Sprint).

    Saying there's real competition in the wireless industry is like saying that because Sony, BMG, and Warner all make CDs, there's "real competition" in that industry. Cable companies were forced to accept all comers (see Time Warner's cables being used by Earthlink, often at a lower fee than TW's RoadRunner service) - and hell, my cable company doesn't even lock me into a 2-year contract...
    --
    Thanks to the War on Drugs, it's easier to buy meth than it is to buy cold medicine!
    1. Re:Competition? by profplump · · Score: 2, Informative

      They won't let me bring in my own equipment. I've tried. They won't even let me re-activate equipment that I bought from them and which is still 100% compatible with their network. I've tried that too.

      If you know of a carrier who will allow me to buy my own equipment (not buy new equipment from them) I'd be happy to do just as you suggest. Until then it's contracts with ridiculous fees or a requirement that I buy the newest, fanciest equipment at a price they dictate without any competition. Suggesting that the later doesn't carry the same financial disadvantages as the former because there's "no contract" is ignorant at best.

    2. Re:Competition? by WafflesMcDuff · · Score: 4, Interesting

      If they didn't allow you to activate a handset that you say is 100% compatible, then I can almost certainly guess what the problem was. A few years back the FCC passed a law requiring all cell phones being activated to be cell 911-compliant. Basically these newer phones contained the ability to automatically connect you to the correct 911 call center when you dial 911 to make sure the emergency services get to you in time. (without this you may as well be calling Delouth Minnesota's call center from New York City). They allowed phones that were ALREADY active without this ability to remain active, as it was deemed unfair to customers to make them go out and buy a new handset against their will all of a sudden. So as long as grandma keeps paying her bill she can keep that brick that sits disused in her drawer active. However, if she deactivates it and then decides she wants it again after all, she will now have to go buy a new phone (or get a free one with a 2 year contract). In reality, your handset is probably 90% compatible with the other 10% being the 911 accessibility that is mandated by law to activate a handset.

  7. Re:As a free market libertarian, I vote against th by Planesdragon · · Score: 4, Insightful

    If the cell provides saw business benefit in opening their network, they would do so.

    And if Ford saw business benefit to requiring Ford Gasoline in their engines, they would want to do so as well. Or if they wanted to create the Ford Expressway, allowing only Fords to be driven upon it.

    Skype is arguing that we'll have a better wireless system if we have an wholly integrated wireless system -- that the spectrum, as a common good, should be shared in an open manner.

    This isn't exactly rocket science or "New Deal" style expansion of government power. It's a request for a federal agency to take a look at the market, and do what it is legislatively required to do.

    (And you don't get a vote on this. The entire reason for the FCC is to insulate the descision about the airwaves from politics.)

  8. Free ride for Skype? by PCM2 · · Score: 2, Interesting

    This article seems to be a mishmash of specious and self-serving claims on Skype's part.

    The reason for Skype's interest in the issue is obvious: they want to force network operators to allow Skype-enabled calling across their networks, something currently prohibited on wireless data plans. In its filing, Skype argues that this capability would offer "tremendous new sources of price competition provided by entities such as Skype," and that's exactly why wireless operators will fight the plan tooth and nail.

    And the problem here is exactly what? It sounds to me like Skype is saying, "Hey guys, if you let us use your networks we'll undercut all your prices and undermine your business models. Then all that money you spent to build out your cellular networks will benefit us instead of you! Deal?"

    Unfortunately, the "invisible hand" has been a little too invisble here, and no operator actually offers a wide-open network. Skype thinks a smidgen of government regulation could actually help out quite a bit

    No doubt it would. They're trying it in Venezuela. What's the basis for doing it here? Why should Skype benefit and the cellular carriers gain nothing?

    Skype (and Wu's paper) point out the various ways that the wireless phone companies block consumer choice: crippling features on phones, locking handsets to operators, limiting consumers' ability to install third-party applications, and limiting the terms of service with bandwidth caps and restrictions on what content can be accessed through the network (Skype calls are forbidden, for instance).

    "Block consumer choice" is an interesting choice of wording here. I've heard most of these complaints before. Then again, T-Mobile allows me to install third-party apps on my BlackBerry, and I can even use it as a wireless modem if I hook it up to my laptop. Presumably I could then run Skype on the laptop (though how well it would work is another story). Kinda makes me wonder what Skype is actually hoping to achieve.

    Verizon, Cingular, et al. hate this and would love to keep crippling WiFi and Bluetooth access on their phones in order to keep traffic flowing through their network, using their (high-priced) services.

    What do WiFi and Bluetooth have to do with running Skype over a cellular network? This sounds like a red herring to allow them to start talking about "crippling" again. How have the carriers "crippled" their WiFi-enabled phones anyway? This one I have not heard of.

    And they manage to avoid the most important question: If Skype is encouraging the government to pass regulation to allow Skype into the telcos' markets, can we therefore assume that Skype is willing to itself be regulated, exactly as the telcos are regulated today?

    --
    Breakfast served all day!
    1. Re:Free ride for Skype? by Mr2001 · · Score: 2, Insightful

      And the problem here is exactly what? It sounds to me like Skype is saying, "Hey guys, if you let us use your networks we'll undercut all your prices and undermine your business models. Then all that money you spent to build out your cellular networks will benefit us instead of you! Deal?" I don't think so. It looks like they just want the carriers to stop restricting equipment and applications. The carriers would still charge for access to the network, kilobyte usage, etc. but without any limitations on which phones you can activate or what you can do with the kilobytes you're paying for.
      --
      Visual IRC: Fast. Powerful. Free.
    2. Re:Free ride for Skype? by zarthrag · · Score: 4, Insightful

      What do WiFi and Bluetooth have to do with running Skype over a cellular network? This sounds like a red herring to allow them to start talking about "crippling" again. How have the carriers "crippled" their WiFi-enabled phones anyway? This one I have not heard of.

      By disabling features such as OBEX push/file transfer, you can be kept from sending files directly from one phone to another, or another computer...without using your cellular modem (possibly at a per-KB rate). Moving pictures/video from your camera would then become a costly affair if you actually use that feature often.

      Wifi generally cannot be used for voip at all. This isn't necessairly crippling, but a complete oversight of what consumers want. I have a wireless network at home, why can't my phone support using it instead of a per-minute rate when I'm here, or at work, or at the bookstore.

      By opening the network, device makers can be free to innovate in ways that will make the iPhone look like a turd on the sidewalk.

      --
      Why can't all fpga/microcontroller manufacturers just release free optimizing compilers???
  9. Re:As a free market libertarian, I vote against th by Creepy+Crawler · · Score: 3, Insightful

    The real question here is whether it is in the public interest to have a heavily fragmented market of incompatible cellular networking.

    Yes, it is their equipment, but it would be illegal to use it on public airspace. Is it in our best interest to allow companies to sell back what was once a public commons?

    --
  10. Re:As a free market libertarian, I vote against th by Mr2001 · · Score: 4, Insightful

    If the cell provides saw business benefit in opening their network, they would do so. Obviously. The whole point of regulation, however, is that if the only thing guiding your actions is "business benefit", it'll often lead you to trash the commons or screw people over some other way. For example, if dirty factories could save money by polluting less, we wouldn't need environmental regulations - but in fact polluting less tends to cost more, so we impose regulations to give them an incentive to do it.
    --
    Visual IRC: Fast. Powerful. Free.
  11. Expensive Data Transfer by MrSteveSD · · Score: 3, Interesting

    I've often wondered why data sent through the mobile networks (voice, internet etc) is so much more expensive than land based traffic. I mean you wouldn't sit around browsing the web over a mobile phone, even if it did have a huge screen, since you'd go bankrupt. Surely it costs more to dig up a whole city and lay cable than it does to erect some mobile masts, so why is data transferred by cable so much cheaper? Also aside from the initial expense of digging up a city, surely maintenance is more expensive for cable companies since it also involves digging and disrupting traffic etc. It seems to me that we are being massively ripped off.

    1. Re:Expensive Data Transfer by Bluesman · · Score: 4, Insightful

      Supply and demand.

      There is only so much bandwidth available on a cellular system, as the frequencies at which you may transmit are limited (extremely limited, I might add).

      The frequencies sent over cables are not regulated, so you can multiplex to your heart's content and achieve massive bandwidth that way. (It also helps that there's much less interference and loss in wired communication.)

      The reason the wireless phone service price hasn't changed is because if it got any cheaper, the network would become saturated because people wouldn't self-limit their phone usage as much. The reason that all phone companies charge about the same is more due to the physics of radio communication than collusion. I guarantee that if Cingular could charge half of what they do and still make a profit, they would, because they'd put all the others out of business, and it's a very competitive market.

      The phone companies know exactly how many users they can support at what data rates down to insane degrees of accuracy. There are ugly equations with many logarithms and square roots in them that tell them this.

      For example, you can determine, based on the frequencies you're allocated and how you're multiplexing your users' data, what signal-to-interference ratio you need to support 336 users with a 2% chance of a dropped call during the peak usage hour.

      The problem is, you can't just add network capacity without limit. It's a tradeoff between cell size, signal strength, and interference. Decreasing cell size might give you the ability to support more users, but you'll also have to decrease the signal strength at the same time or you'll just be adding interference. Using directional antennas will help with the interference problem, but you'll have to handle many more hand-offs and overall QoS may suffer.

      Whereas, with wired communication, if you have one wire and then you add another, you've just doubled your bandwidth. Wireless is a much more limited resource, and always will be.

      --
      If moderation could change anything, it would be illegal.
  12. Libertarians by SuperBanana · · Score: 2, Interesting

    As a free market libertarian, I vote against this.

    I lost all respect for Libertarians after I heard one complain about how his town wouldn't plow his private drive.

    Unfortunately, we tried the "libertarian" take early on in the US; business used to be largely unregulated. What did they do with this freedom? Grossly abused the workforce- preferring to employ children and women, who had little socio-political power and thus were easy to control and work to death. Polluted the hell out of groundwater and rivers by dumping their byproducts whereever they pleased, consequences be damned. Today's working conditions are what they are, purely because the government has raised the bar (slowly) on how workers may be treated after public outcry forced legislation. We're not alone.

    Maybe if you grew up in a state like Massachusetts where children died getting crushed by weaving machines in fabric mills, and where PCBs were dumped by GE into rivers simply because they COULD...well, maybe just then you'd feel a little differently about regulating industry. Hell, they recently found near the Alewife T station, on the cite of an old dye plant, that people who grew up in the area had cancer rates that were astronomically high. These people, as kids, played on the site- and many of them remember that the ground was so contaminated, puddles would form spontaneously in depressions in the ground that were every color of the rainbow.

    1. Re:Libertarians by Dlugar · · Score: 2, Informative

      Maybe if you grew up in a state like Massachusetts where children died getting crushed by weaving machines in fabric mills, and where PCBs were dumped by GE into rivers simply because they COULD...well, maybe just then you'd feel a little differently about regulating industry. Hell, they recently found near the Alewife T station, on the cite of an old dye plant, that people who grew up in the area had cancer rates that were astronomically high. These people, as kids, played on the site- and many of them remember that the ground was so contaminated, puddles would form spontaneously in depressions in the ground that were every color of the rainbow.

      There are different shades of libertarians just as there are with many things in life. Many libertarians are not complete anarchists, however; they see the role of government as being important for market failures, such as pollution. Charging a pollution tax on the marginal cost of pollution would, in my opinion, completely compatible with a libertarian outlook.

      I have no excuses for your hypocritical friend and his driveway, however.

      Dlugar
      --
      Computer Go: Writing Software to Play the Ancient Game of Go
    2. Re:Libertarians by mrchaotica · · Score: 2, Interesting

      There are different shades of libertarians just as there are with many things in life. Many libertarians are not complete anarchists, however; they see the role of government as being important for market failures, such as pollution. Charging a pollution tax on the marginal cost of pollution would, in my opinion, completely compatible with a libertarian outlook.

      As a "different shade of libertarian myself," I agree completely. The key is to not think of it as "evil government regulation," but instead as "accounting for externalized costs so that the free market has accurate information."

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    3. Re:Libertarians by CosmeticLobotamy · · Score: 2, Interesting

      Where consumer activism would have given us corporations which realized they must act in socially acceptable ways

      I'm not sure how much power you think the five guys in the world with the both the time and interest to be consumer activists have, but it's not that much.

      government only gives us corporations which can be extreme sociopaths as long as everything they are doing is legal.

      Whereas not regulating means being an extreme sociopath is legal. I'm not seeing a lot of good either way, here.

      If you're saying there are loopholes and that's bad, you're right. Why not spend your time railing against loopholes instead of against the government in general? You're infinitely more likely to accomplish something, especially if you pick a specific loophole to work on and go from there. It's boring, not nearly as much fun as complaining about the existence of government, but it might actually help something.

    4. Re:Libertarians by Rakishi · · Score: 2, Interesting

      We call them Mexicans now. Thank god for regulation!

      Most of those woman and children from back in the day would likely cut of a limb to have the same working conditions as illegal mexicans have.

      Regulation means they are allowed to do this to an extent and cannot be sued. Yeah for regulation!

      Wait, you actually think lawsuits would change anything without regulation? Look at the Ford Pinto, businesses simply take into account how likely and expensive a lawsuit will be and if they still make killer profits it doesn't matter.

      Not to mention that lawsuits of the magnitude and number needed require a very fucked up legal system and laws that people can sue under.

      How exactly is this better than the same public choosing not to do business with said businesses?

      I'm not sure if communists or libertarians are larger idiots in their inability to understand humans and human society. If everyone does those sorts of things and actively covers it up you're neither going to have much choice or much information about which businesses don't (if your competition is "clean" then you simply pay people to publish reports that they're not to confuse the public).

      Where consumer activism would have given us corporations which realized they must act in socially acceptable ways ...wow, I mean just wow. No, consumer advocates cannot possibly deal with all corporations when all they can do is to publish reports. Millions would die from products and activities which aren't detected, those that are detected would simply be written off as cost of business and large amounts of fud would keep people from being truly informed. And that's assuming a modern level of corporate integrity, if you have something more akin to the mafia then costumer advocates would simply disappear once in a while.

    5. Re:Libertarians by dk.r*nger · · Score: 2, Insightful

      The key is to not think of it as "evil government regulation," but instead as "accounting for externalized costs so that the free market has accurate information."

      Or, as a more general statement: To think of government regulation as the last measure, not the first.
    6. Re:Libertarians by Ikoma+Andy · · Score: 2, Insightful

      I lost all respect for Libertarians after I heard one complain about how his town wouldn't plow his private drive. I lost all respect for Mexicans after I saw one steal a bike. Boy, that sounds intelligent, doesn't it?
  13. no competition by Brat+Food · · Score: 4, Insightful

    I personally dont think theres any cell phone competition in the US.

    I mean look, my cell phone bill has never /really/ gone down. My minutes have gone up slightly for the price, but with the ubiquity, thats the least they could do.

    These guys charge for things that barely use infrastructure thats already up (10c a text message? cmon).

    They dont compete directly on price either. Or service. You can never have it all with these guys, its al a carte and they take you to the bank.

    They neuter phones, and find other great ways to take your money.

    If there was competition, wed all be paying $40 or less for /every/ feature.

    If the cell band opens up, the cell companies are screwed. People will come along and offer service and make a reasonable profit for 1/4 of the prices offered now.

    Sorry for the tired, bitter, rant.

    --

    "Stuff... In my home!? NEVER!" - Zim on Invader Zim
    "I want the toilet seat!" - Little Dog on Two Stupid Dogs
  14. competitive industry? by JimBobJoe · · Score: 3, Interesting

    Given the competition that exists within the industry, is this needed?"

    I don't know if I consider this industry all that competitive--it's an oligopoly mixed with a cultural monopoly (what I mean by that is it's the same type of people running all of the companies. The people who run what we now call, again, AT&T, are basically old phone company fuddy-duddies who think it's a privilege (I'm using that word in the worst way possible) that we all have phone service. The same applies to Verizon and to a lesser extent T-Mobile and Sprint/Nextel.)

    I'm not sure what I think of the idea. Half of me thinks it would be great, and the other half thinks that the companies would decline to upgrade to 3G, thinking that they'd be better off financially keeping the network slow enough so that Skype couldn't work on it.

    1. Re:competitive industry? by figment · · Score: 2, Interesting

      While you are correct as asessing it as an oligpoly, you miss one important part -- how it became an oligopoly.

      The rights to that spectrum were carefully auctioned off by the FCC in a semi-public auction. The companies who currently own these rights (Sprint, T-Mobile, etc) paid literally hundreds of millions of dollars for their spectrum property rights.

      Thus any re-opening up of the spectrum will easily cost in the hundreds of millions of dollars. All this for skype. This seems quite rediculous, there is already an option for new carriers, who are able to buy excess capacity from the current spectrum owners. This is how the companies such as Disney Mobile, Mobile ESPN (before it got axed), Amped, etc, works. This makes a lot more sense, these spectrum owners weren't just gifted with the spectrum, they won it in an auction, presumably because would be the most efficient operators (reflected in their highest bidding prices).

  15. We have an anti-market, NOT a free market by mpesce · · Score: 5, Insightful

    Please do not confuse a free market with an anti-market. Something that is as highly controlled (rightly or wrongly) as the radio spectrum doesn't stand a snowball's chance in hell of being a free market. This is, in fact, nearly the textbook definition of an anti-market, where economic entities collude with governments to retain market control.

    If you want real free markets, then you don't regulate at all. No spectrum allocations, no power regulations, nothing. Of course, that's chaos. So what do we do? We use governmental institutions to balance the needs of all stakeholders. And Skype is quite definitely a stakeholder in this area.

    Everyone, everywhere, needs more competition; that's not just a good idea, it's a Natural Law. Eventually, the telcos will learn this.

  16. T-Mobile is mostly open, right? by hirschma · · Score: 4, Informative

    From TFA: "Unfortunately, the "invisible hand" has been a little too invisble here, and no operator actually offers a wide-open network."

    Hmm, let's see. With T-Mobile, I can:

    - Buy any GSM phone that I pretty much want to, unlocked,
    - Put in my SIM card,
    - Use all of the T-Mobile services,
    - Enjoy wi-fi,
    - Enjoy unfettered Bluetooth,
    - Enjoy an all-you-can eat data plan (albeit, at EDGE speeds only).

    So why doesn't everyone jump on T-Mobile? Well, on the other hand,

    - I pay more for my service (no one is subsidizing my phone),
    - Can't use all of T-mobile's services or voice plans (no "five friends" for me),
    - Can't get any tech support (see, your phone is not supported, bye)
    - Get scary warnings on the "my T-Mobile site" since they cannot identify my phone.

    I have no interest in Skype. But I do have interest in a BYO phone plan at lower cost, and the option to enjoy all of the plans that T-Mobile offers. Perhaps they have a point.

    jh

  17. Markets are not free (enough) by grcumb · · Score: 4, Insightful

    And if Ford saw business benefit to requiring Ford Gasoline in their engines, they would want to do so as well. Or if they wanted to create the Ford Expressway, allowing only Fords to be driven upon it.

    It's seems unlikely that anyone would want to buy Ford cars, if they did that.

    It does seem unusual, doesn't it, that consumers would continue to choose a product when it continually locks them in tighter and tighter to the MotherCorp? It is, alas, not at all unlikely. Standard Oil, Microsoft and AT&T are all textbook cases wherein people continue(d) buying a product that ultimately cost them more than the alternative.

    The market is not free, practically speaking. There is a constant need to outside forces to provide a tempering influence on some of its worst excesses. Government is not a good candidate for this role, but it's the best available candidate, I'm afraid to say.

    --
    Crumb's Corollary: Never bring a knife to a bun fight.
  18. Transport versus value added by stox · · Score: 2, Insightful

    We keep coming up on this question since the divestiture of AT&T by Judge Green in 1984. The problem with current carriers is that they want to control the transport, and the value that can be added. This really is the same debate as breaking the stranglehold on the local loop. He who controls the last mile wins!

    --
    "To those who are overly cautious, everything is impossible. "
  19. How the FCC enables wireless competition by straponego · · Score: 4, Informative
    I was involved in handling the technical aspects of the bidding on the FCC PCS Wireless C Block Auction. This auction was supposed to enable a fourth cell phone carrier to buy spectrum across the US in every market. The auction was limited to small businesses, owned by a woman or minority. You know, fresh blood to compete with the huge incumbents to spur competition, lower prices, and encourage innovation. The I-Phone's random access voice mail? I put that in our business plan, in 1996. Anyway.

    The second largest bidder in the C Block Auction was BDPCS. They bid $2.5 billion. They did their bidding from the offices of US West (now Qwest). They then immediately defaulted, because... they were not actually a real company. They'd never existed before the auction, had never sold a product or service.

    They had bid on all the territories in which US West sold cell phone service.

    The court cases in which they contested their default lasted for years. Years in which there was no fourth competitor in US West's markets.

    The FCC was fine with this.

    Oh, and the bidding process? For each round of bidding, you had to download the results via a proprietary Windows application, over modem, from a 900 number. The download speeds you would get from this number, no matter where you dialed from, amounted to approximately one tenth of the speed of the modem connection.

    Yes, the FCC is a public government agency, the data belonged to the public, and the Internet did, in fact, exist back then. But I added it up, and whoever ran that deal must have made millions from that procedure. A cousin of an FCC commissioner, perchance?

    What I'm getting at, is that if you expect the FCC to enable competition for Skype or anybody else, in the best interests of the public, well. The FCC now, ten years later, is *much* more corrupt than it was then. When Colin Powell's son Michael became head of the FCC and was instrumental in approving the AOL-Time Warner deal (Colin was on AOL's board of directors at the time; the deal made him about $4 million)... Powell was when it started to get really bad.

    Now, the FCC operates purely in the interests of those who can afford their favor.

  20. Re:who are you to MANDATE conditions? by amRadioHed · · Score: 4, Insightful

    True, but they couldn't have made a useful network without the government's assistance. If everyone was able to their own radio devices and broadcast one whatever frequencies they wanted then the airwaves would be a useless mess. The government has put regulations in place in order for radio to be a usable medium and exchange people and companies who are given license to broadcast on part of the spectrum have to play by the governments rules. It's a fair trade I'd say.

    --
    We hope your rules and wisdom choke you / Now we are one in everlasting peace
  21. This will never happen by MEForeman · · Score: 2, Insightful

    Why won't this happen? Because Verizon, Sprint/Nextel, AT&T/Cingular will not let their networks be opened. These companies spent truckloads of money building networks that they will not let be taken away and I cannot see an administrative agency getting any sort of go ahead to do this.

    Is it a good idea? No. They are private networks and they should not be taken away from their owners.

    --
    MEF
    1. Re:This will never happen by n3umh · · Score: 3, Interesting

      No one is proposing taking the networks away from the cell companies. They still get your money when you use Skype over their network.

      What they would be taking away from the cell companies is the stranglehold they have on the data services you can get. I think Skype has a good case.

      The advancement of wireless communication is not well served by the current crop of cellular providers. They want to use the data capacity they've built to charge you $3 for the latest Justin Timberlake video, and to let you get your email at exorbitant rates. They really don't want to be in the network business, they want to be in the gouging-for-fancy-things-you-don't-need business.

      They built their networks believing (correctly, so far) that they'd have this stranglehold. That may have been an incentive for them at the beginning, and I'm sure that someone will say that the nationwide cellular networks wouldn't have been built without that incentive, and maybe they're right, but it's about time for there to be some regulation. The radio spectrum is a public, limited resource.

      Purchasing exclusive rights to public property with expectation that you'd be able to hold and abuse those rights forever is a bad business plan. It would be different story, and would not require regulatory intervention if Skype could just go ahead and build their own cell towers and set up their own wireless data network to deliver wireless Skype to their customers. They can't do that. Neither can anyone else who might want to try to bring new services to customers over wireless. The cell phone companies have little incentive to innovate outside of getting people their ringtones and music videos faster. There will eventually be intervention here. I think the precedent referred to in the article is very strongly applicable here.

  22. It's not as simple as people are suggesting by WafflesMcDuff · · Score: 2, Insightful

    The fact is, with the way the major carriers are at this point it would be IMPOSSIBLE to integrate all the networks so that so long as there is a tower in range of your phone, your phone will work despite what carrier owns the tower or what carrier provides your service....

    Because when it comes down to it all the major carriers use completely different signal types:

    Sprint: CDMA*
    Nextel: iDen
    Verizon: TDMA/EvDO*
    Cingular/AT&T Wireless: GSM

    *I could have these two switched but I don't feel that double checking this detail is necessary to make my point as the general idea remains the same.

    When it comes down to it you cannot unify the cell phone networks the way the landline networks have been unified....
    The landline networks all use essentially the same protocol for communication. POTS (plain old telephone service)

    And THEY'RE not even actually integrated! If the lines going to my house were put in by Verizon originally and I want AT&T to be my local and long distance provider, Verizon still comes in and runs the line from the pole to the network interface jack. The only difference is AT&T pays them to do it! Then an AT&T guy comes in (and if you live in the sticks it's a subcontractor not even a real AT&T guy) and does my inside wiring and then syncs me to the VERIZON network. However, the verizon account attached to my home phone line is billed to AT&T instead of me and then AT&T bills me in turn.

    Isn't legislation great?! People demand to be able to choose whatever service they damn well please. this makes sense and is fair. but rather than investigating feasibility, the lawmakers said "YES! THIS IS IMPORTANT! SO IT IS WRITTEN SO IT SHALL BE DONE!" and POOF! they all integrate with a snap of some congressman's fingers! Right?! Wrong... instead all the phone companies had to come up with a scheme to give people a choice using hardware that wasn't really designed for this.... and so you wind up with a kluged* together billing and passing system. And the only reason it works is because the technology is all the same and so when your bill comes from AT&T you don't know that Verizon still owns the wire and AT&T is just acting as a middle man now and offering you their (very similar) plans.
    *Kluge: To force something to work by cobbling it together poorly... think of forcing the square peg into the round hole. That's kluging.

    So let's get back to cell phones... without the same hardware you can't even begin to try to kluge it the same way. In my honest opinion, Skype has opened a can of worms that if the FCC sides with them, we'll feel the pain from for years to come as the cell phone companies scramble to comply with an outrageous demand.

  23. Re:As a free market libertarian, I vote against th by plover · · Score: 4, Insightful
    Oh, I think they'd sell a lot of Fords. You just have to imagine the big picture of a Libertarian private roadway scenario.

    Ford Expressways, GM Streets and Chrysler Highways are usually four lanes wide, nicely maintained and have a practical speed limit of 80 MPH, and cost $100 per month. Daewoo Roadways are constantly mocked by late-night TV comedians for being slow and narrow, and they almost never go exactly where you want them to, but they only cost $20 per month to use. Just for the elite, let's say Lamborghini has a small system of double-lane highly elevated roadways that let their drivers reach speeds of over 200 MPH, but cost in the neighborhood of $10,000 per month. For the many places they don't serve, they have an arrangement with the big three to let their drivers use their roads.

    Finally, there are public access streets that are little more than overcrowded, rutted, muddy, pot-holed goat trails, but they're free. Because the motoring public shuns them, they never get enough funding to fix them up, and so they remain the last roadways available to the poor.

    You'd most likely buy a Ford (or GM or Chrysler) because that's what the vast majority of ordinary people use, and the roads are both cost effective and superior to the cheaper alternatives. You'd probably pick a car manufacturer based on whose roads carried you closest to your home and work, and what kind of discounts the dealer was willing to throw in. (And Eric Raymond would be out there encouraging people to buy and drive road graders in their spare time, but now I've carried the analogy too far.)

    --
    John
  24. It worked for MCI by Anonymous Coward · · Score: 2, Insightful

    Skype is trying to go down the path trod by MCI back in the day where it used a combination of litigation and whining at the government to convince them that the only way to "protect" consumers from the big, bad meanie that was until recently Ma Bell was to force AT&T to allow MCI to use their existing infrastructure for free, so that a competitor stood a chance of getting their foot in the door.

    Going on thirty years later, we've all seen how well this particular arrangement has benefited consumers.

    More to the point, Skype doesn't even have the old telephone/Internet argument that the American government or public at large has directly paid for the construction of the current US cellular network. The private firms and their customers have paid that as a cost of doing business.

    Even though I don't use VOIP, I've held these companies in fairly high esteem up until now. But after this, I'm classifying Skype with the same bozos who write botting programs for MMORPGs. Quit leeching off other people's work and start a real business, jackholes.

  25. Re:As a free market libertarian, I vote against th by tsa · · Score: 4, Insightful

    If the cell provides saw business benefit in opening their network, they would do so.

    This is exactly why America has, IMO, the most retarded mobile communications systems in the world. From the article:

    Skype essentially wants to turn the wireless phone companies into just another network of the kind currently operated on the ground. This would require carriers to allow any phone to be used on their networks, and for any application. Users would simply purchase a voice or data plan (though these could easily converge into a data plan if VoIP calling is used) and then use the device of their choice to access the network of their choice. Verizon, Cingular, et al. hate this and would love to keep crippling WiFi and Bluetooth access on their phones in order to keep traffic flowing through their network, using their (high-priced) services.

    Here in Europe there are organizations that keep the playing field level, by forcing mobile service providers to do just what Skype asks. Here it doesn't really matter which provider you chose; the're all good because they all have to compete in the same playing field. Why should it matter for a provider what 'type' of data is sent over their network, and by what device this data is sent? Data is data, and the more bits they transport the more money they get. Apparently in America this isn't so. Amazing.

    --

    -- Cheers!

  26. this is a ploy by jay2003 · · Score: 2, Interesting

    Skype does not want wireless (or wired carriers for that matter) blocking their VoIP calls. This request is a warning to the wireless carriers that Skype will push for very disruptive regulatory changes if their traffic is blocked. While Skype likely has low probability of successfully lobbying the FCC on the matter, the impact to the carriers is huge so they likely won't want to gamble since call revenue lost to Skype traffic is only at least at the beginning is only a minor ammount.

  27. Re:As a free market libertarian, I vote against th by anagama · · Score: 4, Insightful
    It's sort of a shame you used a car analogy because this being slashdot, everyone got on board with that. The really insightful part of your post, and the one that should be discussed is this:

    the spectrum, as a common good, should be shared in an open manner.
    That's the refutation to the argument that cell companies shouldn't play because they built the infrastructure. The deal is, they built the infrastructure on a property we all own. It reminds me of something I once heard Utah Phillips complain about (paraphrasing here): the federal government leases our assets to companies who then turn around and sell back to us the stuff we already own at a profit to themselves. He said it much better and more humurously.
    --
    What changed under Obama? Nothing Good
  28. Re:As a free market libertarian, I vote against th by vic-traill · · Score: 2, Insightful

    Bah - here come the arguments by analogy. Yegads!

    But first, on topic stuff:

    TFA notes that Skype's motivation is clear - to boldly place their traffic where its traffic has not gone before. Not argument here from me.

    My understanding of regulation in the land-line telecommunications world is that it was driven by the desire to enable service additions and competition in a business where there were - and maybe still are - significant barriers to entry. It's expensive to get into the telecommunications business, and when long-standing infrastructure is in place, it makes sense to ensure access to that infrastructure is available to competitors, given fair remuneration for the incumbent. The alternative is duplication of infrastructure - for example, last mile cable - which is bone-headed and, as noted, expensive. Regulate for re-selling of that infrastructure. You get competition which is a Good Thing, which should be fair, encourage innovation, etc. and the incumbent opens an additional revenue stream via the re-sale.

    I think it is a fair comment to say that these barriers are not the same for a wireless service. The physical transport - the atmosphere - is already there, so it's not a question of a barrier to entry as a result of cost, at least not in the same way or to the same extent as it is with land infrastructure.

    However the spectrum is a shared medium - that's what removes the cost barrier above. Just because someone occupies that shared medium before you do, should they gain an element of exclusivity? I say no. Of course, everyone can start banging their service out over the spectrum, but this doesn't scale, I don't think. Sooner or later, we reach a limit on the co-occupation of the spectrum. I don't know enough about RF communications to know where or when this is, and as such I may get hammered here. If service providers can reasonably co-occupy the spectrum, then this house is made of cards and no doubt someone will tell me.

    So if co-occupation if a problem, then a regulatory mechanism to force resale of infrastructure is reasonable.

    But Skype doesn't want resale - it wants unencumbered use for customers on wireless networks so that its service can operate in this space. This desire sits at the core of net neutrality, and I'm for it. The service provider is paid for the user's access to the transport, and as long as this is the case, it's none of the service provider's business what I choose to put on the 'line'. You're getting paid for your minutes - don't tell me what I can or cannot say or do.

    OT:

    Re: arguing by analogy - I can hear the 'you must be new here comments', etc. already, but what the hell. Argument by analogy is attractive because it can help others understand the *concept* of what is being discussed or asserted. But it doesn't *prove* anything - it's just a method to clarify. And mainly, it just leads to people trying to talk about one thing by talking about something else. Predictably, this takes you, well ... somewhere else.

    I'm not flaming here - but for god's sakes, what do Ford cars and Chevy highways have to do with Skye, net neutrality, or whatever? And moderators seem to encourage it - got a Good Analogy? That's +5: Insightful, baby! So you can't even configure your way out of it.

    --
    [17] Leary, T., White, C., Wood, P. R., Bhabha, W. D., and Wirth, N. Lambda calculus considered harmful. In Proceedings
  29. Re:As a free market libertarian, I vote against th by robbiedo · · Score: 2, Insightful

    Ayn Rand would just love you to pieces!

  30. Competition is Good by Bellum+Aeternus · · Score: 3, Interesting

    While I don't like Skype per se, they bring up a good point and have Congress's ear. The current mobile providers do everything they can to reduce customer choice and therefore competition. They lock phones, force users into long contracts, and charge outrageous prices. Look to Asia and Europe for examples of successful, open networks with no locked phones and no contracts (yes, you can get a contract for a lower price but you're not required).

    Common carrier laws should be applied to the telcos and to Skype; in fact to any large network. The government is supposed to server the people, not businesses. Everyday I hope that somebody in Congress will remember this.

    --
    - I voted for Nintendo and against Bush
  31. Re:who are you to MANDATE conditions? by Nataku564 · · Score: 2, Insightful

    The governement does manage land. We pay taxes on our land - roughlay analagous to how the providers license the spectrum. The government does also maintain parks and other such public resources, much like how there are sections of the airwaves set aside for public use.

  32. Re:As a free market libertarian, I vote against th by geminidomino · · Score: 3, Funny

    I'm trained formally, as an economist,

    Obviously not as a typesetter.

    Wall of text crits you for 4362. You die.

  33. opening Skype's protocol? by amuzulo · · Score: 2, Insightful

    How about the FCC making Skype open their protocol in exchange? This would be fair, right? :)

    --
    WikiCreole - a common wiki markup language
  34. Re:As a free market libertarian, I vote against th by Registered+Coward+v2 · · Score: 2, Interesting

    Here in Europe there are organizations that keep the playing field level, by forcing mobile service providers to do just what Skype asks. Here it doesn't really matter which provider you chose; the're all good because they all have to compete in the same playing field. Why should it matter for a provider what 'type' of data is sent over their network, and by what device this data is sent? Data is data, and the more bits they transport the more money they get. Apparently in America this isn't so. Amazing.

    And Europeans generally pay more than Americans for that level playing field. You can call almost anywhere in the US to anywhere else for one flat monthly fee and don't have to worry about going from Georgia to Texas and getting hit with roaming charges; plus your fee includes the phone so you don't have to buy it seperately.

    Is it "better" - no ; just different. I prefer lower rates to portability. I alos like no roaming rather than worrying what I will be charged if I use my Portuguese carrier's phone in Germany or having to buy a new SIM to get local rates.

    Since US carriers offer cheap unlimited data plans Skye could make a decent client for PalmOS and Windows Mobile based phones; but they don't. I used their client on my WM Treo and it was less than impressive; plus since my service already allows me to call anywhere in the US without a surcharge it offered no advantages other than being able to make international calls for a lot less.

    Skype should focus on making decent software rather than forcing the government to help them out when they fail in the marketplace.

    --
    I'm a consultant - I convert gibberish into cash-flow.
  35. Re:You're spot on by BrokenHalo · · Score: 2, Insightful

    Excellent, well reasoned reply. Thank you.

    Except, of course, that it has absolutely nothing to do with the thread in question. Sometimes I think Slashdotters have the attention span of a flea. :-|

  36. ON places like Long island towers are expensive by majortom1981 · · Score: 2, Informative

    Here on long island land is at a premium. Cell carriers pay A LOT of many to get their towers mup. Their networks should not be opened up because they pay a lot of money for thier towers for things like the land it sits on, the ata conenctions to the towers and the equipment to run them. That would not be right. I know verizon and cingular are huge companies but that does not make this right.

  37. Re:As a free market libertarian, I vote against th by indifferent+children · · Score: 2, Insightful
    Yes, we would be SO MUCH better off with the Government running it.....

    Your comment would be SO MUCH more insightful, if studies hadn't shown that many government-run socialized medicine systems provide better care than the US's private system, at about half the cost per citizen, per year.

    --
    Censorship is telling a man he can't have a steak just because a baby can't chew it. --Mark Twain
  38. Re:As a free market libertarian, I vote against th by *weasel · · Score: 2, Insightful

    Of course it shouldn't be free.

    But we shouldn't allow them to lock us into particular handsets - just because they don't want competition in that market. And we shouldn't allow them to block non-harmful forms of traffic they already support (data) for no reason other than they don't want competition from that market (VoIP).

    --
    // "Can't clowns and pirates just -try- to get along?"
  39. Right or wrong, libertarian ideas don't APPLY here by Sloppy · · Score: 2, Insightful

    This is nothing but Skype trying to get the government to regulate a market for itself. ... who am I to MANDATE to these sovereign owners any sorts of conditions?

    This is a reasonable position, except for one thing: libertarianism and the whole concept of sovereignty is antithetical to the very premise of the discussion! Once you start talking about highly regulated businesses such a cell network providers, it's already assumed that such positions are rejected.

    If you or I were allowed to open and operate a competing cell network right now, without having to beg government's permission, pay various fees and bribes, etc, then it would make sense that government has no right to interfere with how we use that network. But that's not the world we live in -- this is already a semi-public infrastructure, so squabbling over details of how the government, rather than the "owner", decides how it is used, is appropriate.

    I'm offended as well, by the idea that government might tell me what to do with my network. But these people knew what they were getting into, when they came crawling to the FCC on their hands and knees (with a bag full of cash) in the first place. If you think it is inappropriate for the FCC to tell these people how to use "their own" networks, then the first thing to do is to abolish the FCC. Get rid of the other 1000 things that government is already telling these people to do. Is drawing the line at 1001 things, really upholding libertarian principles?

    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  40. What someone seems to have missed by DaveV1.0 · · Score: 2, Insightful

    Given the competition that exists within the industry, is this needed?"


    Yes, for the simple reason that one must always buy a new cell phone if one wants to change providers. There is no reason for a cell phone to be locked to a service provider other than to "lock in" customers. Just like software and those proprietary file formats everyone hates so much.Cell phone companies use the "discount" on "their" cellphones to justify charging early termination fees. This keeps customers from switching companies and so companies can provide crappy service with little repercussion.

    If cell phones were unlocked, then there would be no reason for the high termination fees and one could take their cell phone with all the contacts, settings, etc, and use them on a competitor's service (assuming they are compatible services). The result would be companies providing better service.

    --
    There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
  41. Re:As a free market libertarian, I vote against th by 0123456789 · · Score: 3, Funny
    Finally, there are public access streets that are little more than overcrowded, rutted, muddy, pot-holed goat trails, but they're free.

    You've driven in New Jersey, then?

  42. Re:More FUD from a useless AC..... by d3ac0n · · Score: 2, Insightful

    Ugh.

    More socialism. And don't mistake, what you are suggesting IS a form of socialism. While the doctors won't be directly employed by the government, the fact that the government would be the only payee is socialism and a serious mistake. Why? Because the government has a limited pot from which to draw funds to pay out for citizen's medical bills. What happens when the money runs out? There are only two choices at that point. Ration the health care, or raise taxes. Historically, the Canadian government has chosen to do BOTH.

    The U.S. system relies more on a capitalistic system to fund health care. It works quite well. It isn't perfect, but it is one of the best, if not the best systems around. Why? The national economy, via MULTIPLE payees, has a nearly unlimited pot of money to pay for health care. Thusly people are able to get the health treatment they need at prices they can afford. The only problem our system is having is a LACK of competition due to the government mandated health insurance, and government "price controls" (which always drive UP prices rather than hold them down.)

    I always hear liberals and socialists talk up Canada's socialized Health Care as if it was the greatest thing since sliced bread. As an Ex-Canadian now living in the Buffalo NY area, I can tell you it's not all that it's cracked up to be. It works just as badly as I described in my first paragraph, if not worse.

    One of the things that I hear about all the time from my doctor acquaintances is how more and more Canadians are coming to the Buffalo area for surgery. Why? Because they are getting rationed in Canada and are having to wait insanely long times to get lifesaving surgery. So long, in fact, that MANY people are dying before they can get the surgery they need! Many Canadians are now coming to Buffalo (and other border cities) and paying CASH to get their surgery done so they can live! If we end up getting socialized medicine here in the U.S. I don't know where they will go. I guess many more people on both sides of the border will just die waiting for surgery. Gee, that just makes me want socialism even more! NOT!

    --
    Official Heretic from the "Church of Global Warming". Proven right thanks to whistle blowers. AGW = Flat Earth Theory