Slashdot Mirror


Why US Wireless Isn't Wide Open

Geoffery B tips a story in Business Week about why the US cellular carriers' talk about opening up their networks rings hollow. "Even as the wireless industry chants a new gospel about opening mobile phone networks to outside devices and applications, some of the biggest US carriers are quietly blocking new services that would compete with their own. Would-be mobile-service providers, ranging from startups to major banks to eBay's PayPal, have encountered these roadblocks, erected by the likes of AT&T and Verizon Wireless. In some cases, cellular carriers have backed down, but only after inflicting costly delays on the new services."

21 of 70 comments (clear)

  1. Summary by Anonymous Coward · · Score: 5, Insightful

    Why US Wireless Isn't Wide Open Answer: Greed.
    1. Re:Summary by Adambomb · · Score: 5, Funny

      Christ, one comment by an AC and already theres nothing left to be said really.

      --
      Ice Cream has no bones.
    2. Re:Summary by christus_ae · · Score: 3, Interesting

      I think that's an oversimplified sensational exaggeration to the notion that a business is out to make money, and would hence not readily open the market to more competition and subsequent profit loss.

      For the record, trying to make money != greed. Not relinquishing a dominated holding (what they're doing is legal) is not greedy, it's intelligent business. What do the companies have to gain by allowing more competition in an already competitive market?

    3. Re:Summary by CajunArson · · Score: 5, Insightful

      Remember kids this is Slashdot where greed is ALWAYS EVIL.*

      * Exceptions:
              1. Apple getting premium prices
              2. Any Slashdot fanboy downloading any movie/music/game for free since this it's only greedy when the creators want $$ for it, not when Slashbots want it for free
              3. The other companies mentioned in this article that are not really being banned, but may not be able to get "short" numbers. They are not greedy, since they want to make money, and get a scarce resource (short number codes). If these non-Verizon companies want to hog the short codes this is NOT greedy because they are Slashdot approved. Only the cellphone companies are greedy. Everything is purely black & white.
              4. Whenever a Slashdot approved company makes money: AMD, IBM (called an 'underdog' for unknown reasons), Google, Apple (again)
              5. Any company with a '90's style business plan that goes under due to ineptitude. They are seen as being martyrs for the religious cause of the week, and that they should have succeeded except for George Bush being evil and destroying them.

      --
      AntiFA: An abbreviation for Anti First Amendment.
    4. Re:Summary by Elemenope · · Score: 5, Insightful

      Whoa! The equivocations are flying by at light speed!

      For the record, trying to make money != greed. Not relinquishing a dominated holding (what they're doing is legal) is not greedy, it's intelligent business.

      If one's sole concern is profit, to the exclusion of all other concerns (public health, advancement of humanity, humor value, whim, sex appeal, religious imperatives, etc.), then that's greed. It really doesn't matter *at all* if it has the sanction of law or not; law says next to nothing about ethics, and greed is primarily an ethical judgment.

      Intelligent business *is* greedy. Leveraging dominant market share *is* greedy. Trying to make money (as a corporate mandate, not in general; individual moneymaking is a more complicated issue) *is* greedy.

      Now, what really needs to be talked about is whether greed is at all times *good*, **bad* or something in between. That would be the moral discussion, divorced as it is nearly entirely from both law *and* ethics.

      --
      All the techniques ever used to make men moral have been themselves thoroughly immoral... (Nietzsche)
  2. Hmm by christus_ae · · Score: 3, Insightful

    I don't think it's out of the norm for a business in a competitive market to create artificial barriers to entry to protect their profit margins. In a capitalist system, a business must take certain steps to "get ahead" of current and would be competition to survive. These are typical tactics.

    I feel like the summary is a tad sensationalist... I don't find a business not voluntarily allowing more competition to be suprising.

    1. Re:Hmm by ciscoguy01 · · Score: 2, Insightful

      I don't think it's out of the norm for a business in a competitive market to create artificial barriers to entry to protect their profit margins. In a capitalist system, a business must take certain steps to "get ahead" of current and would be competition to survive. These are typical tactics.

      But in the US wireless market that's hardly what's going on. The carriers keep a stranglehold on the equipment supply by being essentially the only buyer of handsets from each manufacturer. Which explains why the manufacturers have been making handsets the carriers want instead of what we want, until Apple came along that is.

      They keep the prices artificially high on those handsets so they can discount them (or even give you one "free") but only in exchange for signing a long contract to pay them monthly. It's cheaper to keep a customer for a long time that to have to get another one, mostly because of all the commissions, kickbacks, etc. that pervade the US cellular industry.

      In fact it's gotten so egregious that in the case of ATT, if you want an Iphone, the best way to get it is to go to a phone store, get a "free" phone, sign a 2 year contract to get it, then buy your $399 Iphone at full price. You essentially get the free phone for free, and you get the Iphone too, by paying for it. The 2 year agreement is the same.

      Now if you got the discount or rebate for the Iphone this wouldn't work. But you don't, and the Iphone is the first handset that has been sold at full price but you have to sign a two year deal to get it activated. The amazing part is people don't get it and have gone along with it.
      If the purpose of the subsidy lock and the contract is to make sure you pay for the subsidized phone, but that's doesn't come into the Iphones since they are not subsidized, why should you have to sign a deal to get one? But you do.

      --
      .
  3. And You're Surprised? by Nom+du+Keyboard · · Score: 2, Insightful

    In some cases, cellular carriers have backed down, but only after inflicting costly delays on the new services.

    And you're surprised at this news...why?

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  4. That's not what the article is about. by Lemmy+Caution · · Score: 5, Informative

    The article is about foot-dragging and rejections for some short-code services that compete with the wireless carriers.

  5. Open network surcharge. by pavon · · Score: 3, Insightful

    Even if they were completely open about what phones and services you could use on their network, it wouldn't amount to much thanks to subsidized phones. How many people will really pay full retail price for a phone when they can get one that is just as good, but locked down, for "free"? Yay, I can save $2 on custom ringtones if I pay $150 more for my phone.

    1. Re:Open network surcharge. by _xeno_ · · Score: 2, Interesting

      If it would let me use my phone's built-in GPS with Google Maps, sure I'd pay $150 extra for the phone. If I were allowed to transfer applications between phones, sure it'd be worth it.

      The reason my phone doesn't allow Google Maps access to the GPS is because Sprint sells a similar service for $10/month. So if the phone lasts more than 15 months, it would have been worth it.

      Add in other locked down features (can't email photos from the phone, can't easily copy files off the phone, etc.) and it would be easily worth paying an extra $150 to get full access to the phone.

      'Course, your question was really "would most people shell out an additional $150" and I have to admit the answer is almost certainly no.

      --
      You are in a maze of twisty little relative jumps, all alike.
    2. Re:Open network surcharge. by Vegeta99 · · Score: 2, Informative

      Right now, AT&T is "Open" in the fact that you can bring a device to them that operates on the US 1900MHz and 850MHz GSM bands, and purchase a SIM card for service without a contract.

      Verizon says that you can bring a CDMA handset to their network, I'm not sure with contract or not.

  6. Re:USA is owned by the corps by Anonymous Coward · · Score: 3, Funny

    Get over it. Bend over, take it up the dirt box and cease your moaning.


    Your first two statements would seem to contradict the third one.
  7. Re:USA is owned by the corps by Bryansix · · Score: 2, Insightful

    No, you are wrong. Not about the USA being run by greedy corporations but in what our response should be when a corporation steps over the line. You see it is not always the most profitable to do what is most profitable in the short term. That is the lesson we need to teach corporations. When they alienate their customers by treating them like trash or worse like criminals (RIAA can you hear me now?) then the consumers need to respond by taking business elsewhere and raising public awareness. This will ensure that such moves are not profitable and then even their stockholders will demand that they stop being such greedy bastards with a short view of the future and look more at how they can foster a good relationship with their customers in the long term.

  8. Re:Are US numbers portable? by techpawn · · Score: 2, Informative

    Under the Federal Communications Commission's (FCC's) "local number portability" (LNP) rules, so long as you remain in the same geographic area, you can switch telephone service providers and keep your existing phone number. If you are moving from one geographic area to another, however, you may not be able to take your number with you. These rules have applied for some time to wireless and most traditional, wireline telephone companies. In addition, the FCC recently extended the LNP rules to interconnected Voice over Internet Protocol (VoIP) providers and determined that the rules would also apply to small wireline telephone companies that have not been granted waivers from the rules by their state public utility commissions. Therefore, subscribers remaining in the same geographic area can now switch from a wireless, wireline, or VoIP company to any other wireless, wireline, or VoIP company and still keep their existing phone numbers.

    No they ALL have to

    --
    Ask not what you can do for your country. Ask what your country did to you
  9. Re:Are US numbers portable? by e4g4 · · Score: 3, Informative

    Umm - as of ~3 years ago, all cell phone carriers operating in the US are required by the FCC to allow numbers to be ported to and from other providers. The same is true of local (landline) phone numbers as of ~10 years ago. It is not yet true of VoIP. Mind you the cell carriers don't actually have to implement it until someone asks for a port - but when they do, they must comply.

    --
    The secret to creativity is knowing how to hide your sources. - Albert Einstein
  10. Re:The Spectrum should be democratic and FREE by donutello · · Score: 4, Informative

    Public deserves atleast a lowcost emergency phone which doesn't need the monthly and yearly contract slavery.

    This already exists. Pick up any used cellphone from any carrier. They will always allow you to make 911 calls regardless of whether or not you are under contract. If you mean emergencies that don't involve calling 911, you can buy a prepaid phone card which will allow you to do the same without having any sort of contract or annual fee.

    You should try to gain a better understanding of the problem before you try to propose solutions to it.

    --
    Mmmm.. Donuts
  11. Re:The Spectrum should be democratic and FREE by Aqualung812 · · Score: 2, Informative
    If you mean emergencies that don't involve calling 911, you can buy a prepaid phone card which will allow you to do the same without having any sort of contract or annual fee.

    Please point me to a prepaid plan where the minutes don't expire. Every one I have found expires after a few months, creating a de-facto annual fee.

    Do you have the better understanding you said the OP did not have?

    --
    Grammer Nazis - I mod you "troll" unless you actually add something on-topic. Yes, I know I have mispellings in my sig.
  12. Misleading title and summary by Frank+Battaglia · · Score: 4, Interesting

    The article is about "short codes" for text messaging (e.g., "Text 105312 to vote for the next American Idol!"). The telcos are slow to approve new short codes. This has little, if anything, to do with open network access.

    Illustrative example: The wired phone network is an open-access network (i.e., you can call whomever you want using whatever phone you want and transmit whatever data you want), but that doesn't mean the phone company has to give me a 3-digit access number (ala 911, 411, etc) if I ask for one. This article is stupid.

  13. Better Summary by Requiem18th · · Score: 2, Interesting

    Why US Wireless Isn't Wide Open


    Because the field is completely dominated by huge corporations with great influence in Washington, free markets are incapable of demolishing, and in fact work in favor of monopolies, people are too apathetic to learn, let alone do anything about it, too scared of offending the corpogoverment and worst of all, too resentful of each other to believe they can work together for their mutual benefit.
    --
    But... the future refused to change.
  14. Then why not sell crack? by big_paul76 · · Score: 2, Insightful

    Here, here. I can't stand this idea that by saying "it's just business" you get to absolve yourself of any discussion of ethics. People are essentially asserting that, by saying 'it's just intelligent business' that you ought to be able to operate in an atmosphere of applied amorality.

    As much as many of his stuff annoys the hell out of me, Michael Moore had a line one time about "why doesn't Chrysler sell crack?"

    When a company does something unethical, they say they have not just a right but a responsibility to maximize return for shareholders. So, if that's all that matters, why not sell crack? Or heroin, or Russian hookers, for that matter?

    The obvious answer is that we as a society have decided (granted this is not perfect) that certain behaviors are so harmful or immoral or unethical that we say "nobody is allowed to do this", which is perfectly reasonable in a democracy.

    Now, we could have a lot of room for debate over what exactly should or should not be allowed, but I'm sick and tired of people taking the approach that businesses should operate in a morality/ethics-free zone.

    --
    The plural form of "anecdote" is "anecdotes", not "evidence".