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AT&T Defends Controversial FaceTime Policy Following Widespread Backlash

zacharye writes "AT&T is wasting no time hitting back at critics of its decision to limit the use of popular video chat app FaceTime over its cellular network to users who sign up for its shared data plans. In a post on the company's official public policy blog on Wednesday, AT&T chief privacy officer Bob Quinn sneered at criticisms that restricting FaceTime over cellular to shared data plans violates the Federal Communications Commission's network neutrality rules for wireless networks."

43 of 220 comments (clear)

  1. It probably won't make a difference, but... by Given+M.+Sur · · Score: 5, Informative

    File a complaint against AT&T here: http://www.fcc.gov/complaints

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    nil
    1. Re:It probably won't make a difference, but... by shadowrat · · Score: 5, Insightful
    2. Re:It probably won't make a difference, but... by Anonymous Coward · · Score: 3, Informative

      Whoosh.

      (The joke was to change cell phone carrier)

    3. Re:It probably won't make a difference, but... by Anonymous Coward · · Score: 2, Funny

      Did you look at the Dude's links? Are you even listening to the Dude's story? Donny, you're like a child that wonders in on his parents' argument...

    4. Re:It probably won't make a difference, but... by idontgno · · Score: 2

      If you read GPP, you'll notice that the "complaint department" actually cited are AT&T's competitors. I.e., complaining with your feet and your dollars.

      Of course, that neglects the rather painful impacts of walking away from a brand-stinking-new mobile contract in the U.S.: early termination fee, not being able to use your brand new device on the new network or under the new contract, general douchebaggish resistance from your prior provider to your migration (like slow-rolling phone number transfers...)

      Network provider lock-in is good business for the provider. It neutralizes the practical effect of customer discontent and keeps the monthly fees rolling in. As long as customers keep taking shit, providers are happy to keep selling it.

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    5. Re:It probably won't make a difference, but... by Lumpy · · Score: 4, Funny

      It is typical of Ex AT&T CSR's or Reps to be a bit "special" and not able to read or communicate. Give him a break.

      --
      Do not look at laser with remaining good eye.
    6. Re:It probably won't make a difference, but... by MightyYar · · Score: 2

      Of course, that neglects the rather painful impacts of walking away from a brand-stinking-new mobile contract in the U.S.: early termination fee, not being able to use your brand new device on the new network or under the new contract, general douchebaggish resistance from your prior provider to your migration (like slow-rolling phone number transfers...)

      I learned my lesson and now do prepay. There are a few disadvantages, but totally worth it to save $30 or so per month with no contracts to deal with - and it's impossible to have a "surprise" phone bill.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    7. Re:It probably won't make a difference, but... by oakgrove · · Score: 2

      You can also file a complaint against At&t here here, and here. I heard there are some other places too but I'd suggest one of these guys first.

      --
      The soylentnews experiment has been a dismal failure.
    8. Re:It probably won't make a difference, but... by v1 · · Score: 2

      Try Tango. Works pretty much everywhere.

      I prefer Whiskey Tango Foxtrot

      --
      I work for the Department of Redundancy Department.
    9. Re:It probably won't make a difference, but... by KhabaLox · · Score: 2

      Donny you're out of your element! Dude, Verizon is not the issue here!

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      Ceci n'est pas un sig.
    10. Re:It probably won't make a difference, but... by Swave+An+deBwoner · · Score: 2

      rate limited unlimited data

      I can see it now:

      Eat at Joe's

      All You Can Eat! *

      * 1 french fry and 1 squirt of ketchup per hour maximum; restroom is unavailable during normal seating hours

  2. Is anyone surprised by this? by a-zarkon! · · Score: 4, Interesting

    I know I'm not. They can't upgrade the infrastructure fast enough to keep up with the explosion in devices and bandwidth-hungry applications, so they rate-limit, restrict, and jack the rates on an increasingly over-subscribed (with corresponding decreases in performance) in the interest of keeping things just usable enough to not lose too many customers.

    It's not like there are a lot of alternative providers out there who offer better service or more compelling pricing....

    1. Re:Is anyone surprised by this? by h4rr4r · · Score: 5, Insightful

      Bullshit!
      They just don't want to bother upgrading, it is more profitable to rate limit and jack up prices.

    2. Re:Is anyone surprised by this? by muon-catalyzed · · Score: 4, Informative

      AT&T actually have bigger revenue then Apple and net profit in billions of USD, they could do a whole lot better job.

    3. Re:Is anyone surprised by this? by MozeeToby · · Score: 3, Insightful

      Their margins are ridiculous, they could spend 2x more on infrastructure than they do and still be profitable. They need to quit blaming their own success for their horrible service, man up, and make a real investment in their network. Stupid thing is, they'd probably see their profits go up in the long term, but it might be a couple years out, maybe even *gasp* four or five before it hits break even! Inconceivable from a business prospective!

    4. Re:Is anyone surprised by this? by Desler · · Score: 4, Informative

      Actaully Apple has nearly 4 times the operating income and 6 times the net income of AT&T. Gross profit is mostly a useless measure.

    5. Re:Is anyone surprised by this? by berashith · · Score: 4, Insightful

      It is truly amazing how much more money can be made when you try to cater to what your customers want instead of screw the customer over and make them regret every penny they give you.

    6. Re:Is anyone surprised by this? by Charliemopps · · Score: 4, Insightful

      You misunderstand the situation. I don't want to take the blame off the cellular industry, it IS their fault... but you have to understand how the infrastructure works.

      I doubt ATT is having a problem in places like downtown chicago. There are A LOT of customers in that area, and A LOT of data infrastructure running everywhere. Data is cheap, and customers are plentiful.

      You get out to rural Montana, and to feed a cell tower it might cost you upwards of a few million dollars to run a single T1 to it. And that tower on average only serves 100 or so customers. Upgrading that tower is not profitable at all. The obvious solution is not having 4G service there. But then your biggest competitor comes along and starts splashing their map of 4G coverage all over the place... and your marketing department goes into a tizzy "WE HAVE TO SELL 4G!!!! WE LOOK LIKE CHUMPS!" then you have the feds coming in, demanding rural broadband... well crap... ok, we have 4G there. It'll only work for 4 customers at a time but it's there...

      Again, it's the industry as a wholes fault. But it's not as cut and dry as "They're just too lazy"

    7. Re:Is anyone surprised by this? by oakgrove · · Score: 4, Funny

      But...but...but the Free Market (TM) is supposed to take care of all this. It must be over regulation!

      Yes, if only there were a model of a real competitive phone market somewhere that we could learn from. Possibly a magical land where it would be common for you to buy your device and get the service separately. Where if one were fed up with carrier A, they could just chuck the sim in the trash and insert one from carrier B. Imagine how cheap phones and service would be with carriers actually competing for your business!

      Yeah, I know *insert needle being scraped across record* stop dreaming and get back to work.

      --
      The soylentnews experiment has been a dismal failure.
    8. Re:Is anyone surprised by this? by jeko · · Score: 5, Insightful

      Everything you just said is valid, and parallels the situation with another utility, namely the power grid. All of the arguments against why we can't have rural cell coverage were previously used to explain why we can't have a rural electrical grid.

      The answer turned out to be that government needed to set up power companies, and that utilities needed to be publicly-owned or closely watched and directed (i.e., regulated). Initiatives like the Tennessee Valley Authority meant that my grandparents got to trade in their lanterns and candles for electric lights.

      The simple fact is that there are a few core infrastructure industries that need to be either publicly-held (power, water, sanitation, mail) or kept on a very, very tight leash (Banking, see "Glass-Steagal").

      AT&T is making a very convincing case that communications infrastructure -- which was already developed and built by tax dollars -- needs to be another publicly-held infrastructure. Here's how you know this is true.

      Every time some local municipality gets together and starts putting up their own wreless network, the telecom lobbyists always descend like locusts screaming that "It's not fair to make us compete against government entities!" What they're saying is that private companies in this industry, with their need for profit, can't ever be as efficient as a public effort. All that means is that as technology has progressed, we've simply discovered another industry that operates as a classic "market failure."

         

      --
      He put his boots up on the table and made a face. "The sig," he smirked. "You can waste your life in search of the sig."
    9. Re:Is anyone surprised by this? by hazydave · · Score: 3, Interesting

      Well, some of it is specific to AT&T.

      Back when Verizon had already completed their 3G buildout (every cell site), Cingular and AT&T Mobile were merging two different networks into a single thing. That meant replacing essentially half of the 2G TDMA (DAMPS) cells with 3G/HSPA. Then they went back and replaced/upgraded most of the HSPA with HSPA+, and now they're adding LTE. Verizon skipped all that intermediate stuff and just added LTE.

      With that said, they're both showing 40%-ish profits these days. It's hard to have too much sympathy for their sad plight, or when they screw over customers yet again, regardless of the reason.

      As for 4G, in fact, a T1 backhaul isn't sufficient for 100 connections on HSPA, much less LTE. In fact, a single T1/DS1 circuit isn't sufficient for a single HSPA backhaul. New towers are nearly always Ethernet over optical fiber or perhaps high-speed point-to-point microwave (1Gb/s backhaul over 20 miles for under $40K in gear). Only those offering only 2G access ought to still be using a single T1 link (you need 14 T1 links to properly support a 3G/HSPA cell). But I agree... the cost of upgrade some remote-ass tower (like the one near my house in South Jersey, I'm guessing) isn't particularly attractive relative to the number of users likely to hit that tower in any given day. The one loophole in that -- carriers like to have really good service along major roads, and that may provide justification enough.

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      -Dave Haynie
    10. Re:Is anyone surprised by this? by KhabaLox · · Score: 2

      GP link
      2011 Annual revenue for AT&T = $126B

      AAPL
      2011 Annual revenue for Apple = $108B

      But you're right, in the last quarter ending June 30 Apple outsold AT&T. In fact, over the last 4 quarters, Apples revenues were $148.8B versus $127.4B for AT&T

      --
      Ceci n'est pas un sig.
    11. Re:Is anyone surprised by this? by Hatta · · Score: 2

      We are talking about Apple here. Apple doesn't cater to their customers. Apple's customers will take what Apple gives them and be thankful.

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      Give me Classic Slashdot or give me death!
  3. That is a "defense"? by ScooterComputer · · Score: 3, Insightful

    That "defense" seems to be worse than the Dallas Cowboys Defense of last year (excepting DeMarcus Ware...he's the MAN!). So AT&T -ADMITS- they're blocking capriciously and discriminatively, but then says "We're doing nothing wrong."?

    I'm not sure what violating net neutrality looks like then, in these guys' minds. So Comcast can block Hulu, that's just fine, but only allow it for their Triple Play customers, since they're trying to reduce congestion???

    BZZZZZZT! Wrong answer, jerk.

    --
    Scott
    "Hokey religions and ancient weapons are no match for a good blaster at your side, kid."
    1. Re:That is a "defense"? by MachineShedFred · · Score: 5, Interesting

      What will be interesting is if they try this crap on LTE, where there are contractual obligations to not discriminate based on application usage in the Block-B spectrum they purchased. Verizon has already gone down this road with something more ambiguous (tethering) and lost. This is an actual application that they are discriminating against.

      AT&T may not be able to get away with this shit for very long before running afoul of the FCC.

      --
      Slashdot still doesnâ(TM)t support Unicode after it was added to the HTML standard in 1997.
  4. Heh by Impy+the+Impiuos+Imp · · Score: 5, Funny

    > AT&T chief privacy officer Bob Quinn sneered at criticisms

    "On retrospect, I probably should have turned off face chat before doing that."

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    (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
  5. One Big Family by Sponge+Bath · · Score: 4, Insightful

    AT&T wants to dictate how you use the data transfer you paid for by charging even more for specific applications. This plan only works if AT&T colludes with other carriers to do the same. Now we see if the industry wide collusion happens and if the government chooses to do anything about it.

  6. Does AT&T's argument hold any water? by mkraft · · Score: 4, Interesting

    I know back in the day Verizon, AT&T and other providers used to get to pick and choose what built-in apps they wanted on their phones, but that's not done anymore since phones aren't really customized for carriers anymore. At least not in the case of the iPhone (other than the CDMA/GSM difference). The same built-in apps are on all iPhones, regardless of the carrier. As such the FaceTime app is being provided by Apple, not AT&T. It shouldn't make any difference whether it's built-in or downloaded. If it did, then Apple could simply add a FaceTime 3G Unlock app to the App Store and then according to AT&T's logic, AT&T would have to allow it.

    I suppose since AT&T is subsidizing iPhones, that AT&T can have some say over how things work, but how can they justify applying those same restrictions to people paying full price for the phone or no longer under contract?

    1. Re:Does AT&T's argument hold any water? by mkraft · · Score: 5, Informative

      The block is done the same way the tethering block is implemented. There's a setting in the carrier file which controls whether or not FaceTime is allowed over 3G. The processing of said file is built into the iOS and can be downloaded over the air and time the user connects to the carrier network. AT&T sets the FaceTime flag to no or yes based on user's the chosen plan. Other carriers simply set it to yes.

      For example, when I went to China with my iPhone and connected to China Mobile the tethering option suddenly became available (since China Mobile doesn't block tethering). When I got back to the U.S. and connected back to AT&T, the tethering option was disabled again (since I'm on the grandfather unlimited plan).

      Processing of the carrier file is built into iOS and it doesn't care if your phone is unlocked or not. Unless AT&T sets the FaceTime flag to true for unlocked iPhones, then you still won't be able to do FaceTime over 3G, unless you switch to a Mobile Share plan (which is a rip off if you ask me).

      To bypass this block, your iPhone would have to be jailbroken.

  7. AT&T. Never had 'em, never will by Picass0 · · Score: 2, Informative

    I have great concern over a carrier thinking they can tell a customer what apps they may or may not use. AT&T needs to be challenged or this is a bad road we are heading down.

  8. Re:AT&T vs. Microsoft by dkleinsc · · Score: 2

    If you're voting for either Democrats or Republicans this November, both are guaranteed to win:
    AT&T's bribes.
    Microsoft's bribes.
    Now, Microsoft is about 2/3 supporting Democrats and hedging 1/3 for Republicans, and AT&T is the other way around, but neither of them can really lose.

    If you don't want to vote for them, you'll have to vote for a third-party candidate like Jill Stein (Green) or Gary Johnson (Libertarian).

    --
    I am officially gone from /. Long live http://www.soylentnews.com/
  9. Re:Preloaded App - does that make a difference? by mlingojones · · Score: 2

    It's FaceTime on an iPhone, so I seriously doubt AT&T had any say in its inclusion with the phone. Which means that no, you can't remove it at all, although you can download additional videochat apps if you so wish.

  10. AT&T is missing out here... by drcagn · · Score: 4, Insightful

    Am I reading this right?

    AT&T institutes a policy that is so terrible, it has created a perception in the public that it might even be illegal. So instead of coming up with better ways to satisfy your customers, AT&T decides to defend their terrible policies by insisting "yes, this is legal!"? It's like the entire point went right over your heads. Where on Earth is your PR team?

    Your customers all know that "data is data" and there's no technical reason to disallow FaceTime on all your old plans (you know those plans all of your long-time LOYAL customers are on). Your customers know that you are simply placing arbitrary restrictions on those data plans to creating a differentiating factor in your shared data plans. We are not stupid.

    I switched to AT&T when the first iPhone was released, and I have stayed on board even after Apple has added new carriers, despite the fact that over time AT&T has gotten worse and worse about my unlimited data plan. Apple and the extremely Apple loyal fanbase has helped AT&T in creating the near-duopoly mobile carrier market we have today. Apple hit it big with the iPhone because, like all of their products, they go above and beyond to make elegant products, take care of their customers in any way they can, and foster the greatest experiences possible for their platform. If you provided the same experience as a carrier, you would have the iPhone market completely cornered. But instead you sacrifice all that potential just to squeeze more money out of the people who remain on your network. That's poor planning and, simply put, you're all stupid for it.

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    Scorta futuere amo!
    1. Re:AT&T is missing out here... by MickyTheIdiot · · Score: 2

      I guess you haven't noticed, but the trend for the past three or so years has been to put out at least one statement that can be boiled down to "we're the corporation, you're going to take what is given to you" before even attempting to solve the problem with their customers.

      Usually it ends up with some half-assed corporate apology, but like we saw with the screwed up U.S. Olympic coverage this year sometimes they never deviate from that.

      Corporate asshattery, self-righteousness, and arrogance is at an all time high, and depending on how things play out in November it might be on an upward trend for the next four years. No matter how the corporate types whine they have never had as much power over our society that they have today.

  11. Re:AT&T. Never had 'em, never will by jemtallon · · Score: 2, Insightful

    This whole post smells of controversy where there isn't one. AT&T was worried their network couldn't handle the load if the future suddenly arrived and everyone was video calling each other. So years ago they blocked 2-way video apps over their network (but not over wifi cause who cares). They've since realized this isn't the Jetsons so they're going to slowly allow that traffic through to see if it bites them in the ass. Assuming the novelty wears off pretty quickly for most users and their network doesn't take a dump in the mean time, they'll likely open it up entirely. It's not menacing and he isn't "sneering" - it's an issue of conservation. They have a limited number of resources that they've planned for and sudden disruptions to that plan can ruin their business. He's just a businessman - apply Hanlon's razor if you must but don't put your negative shit on him. AT&T isn't violating your rights, they don't care what software you use, and we aren't heading down any "bad road." Well, at least not from this. Go fear-monger elsewhere.

    --
    -1 karma, +1 righteousness

  12. Does not compute by quacking+duck · · Score: 5, Insightful

    Their thinking simply doesn't make any sense.

    - Androids are outselling iPhones (globally, maybe not AT&T specifically)
    - iPhones currently don't have real 4G, which is over 3x faster than 3G on AT&T's network
    - Android users now consume more data, faster, and put more strain on the wireless network at any given time, compared to iPhone users
    - Skype is available on all major platforms and works over even 3G; quality is surely better on 4G/LTE.

    And yet, they're blocking Facetime "out of an overriding concern for the impact this expansion may have on our network and the overall customer experience"??

    Logic fail, AT&T. Just admit you're being greedy bastards and think iPhone users are more easily ripped off, that way you'll just be extortionists without also being liars.

    1. Re:Does not compute by hey! · · Score: 2

      As far as I can see, none of your examples has much to do with the app in question. Realtime video communication is a torture-test for a network whose capacity is planned and sold with statistical multiplexing in mind. Every commercial network in existence is predicated on the idea that users don't need peak bandwidth all the time, that need comes in bursts and bursts from users seldom overlap. That's what makes network access affordable; guaranteeing everyone peak bandwidth all the time would require dedicating a private channel to each user.

      Modern video codecs would make a stream of a talking head against a relatively static background fairly bursty, but there's a limit to how low they can reduce bandwidth consumption. And mobile processors, while quite powerful these days, aren't magic. For example the more work they do, the more battery life they consume. So it's quite plausible, despite the examples you cite, that an app like this is a problem for the carrier. Skype would come the closest, but by *integrating the video app with the phone app* Apple guarantees much greater use and therefore network load. In any case without a side by side comparison with a network monitor we can't say whether Skype and Facetime are equivalent in their impact for any given call.

      People get net neutrality all wrong -- even people who are for it. It's not about some kind of birthright to bandwidth, it's about non-discrimination. It's about freedom, but freedom doesn't mean freedom from consequences or costs. Network neutrality means people don't have to limit themselves to services chosen by the carrier provided by vendors chosen by the carrier. It means they do what they want with whomever they want, provided that the network is capable.

      The easiest way to achieve non-discrimination is ignore app and user bandwidth consumption entirely. But to make that work, you'd have to charge people for traffic, particularly long bursts of traffic. Since people won't stand for that, they're pretty much guaranteed inconsistent service unless the provider starts throttling people or apps that send long streams of data. I'm actually OK with that, *as long as it is done consistently and on a purely technical basis*. This preserves competition. All app providers have to fall within the same network use limitations.

      The problem is when carriers discriminate for marketing reasons (you must use *our* video conferencing app, you must use *our* email service, use our photo service to get your pictures off the phone). That's why featurephone apps never took off like smartphone apps. Smartphones are a competitive market any app developer can enter.

      I won't argue whether this is or is not a violation of network neutrality, because that's not the important question. The important question is whether this leaves competition intact. We won't know until we see whether AT&T favors some apps or vendors over others.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  13. I Declare Shennanigans by zifn4b · · Score: 2

    AT&T's share price has greatly improved over the past year and is almost back to where it was 5 years ago. I can only assume this means a great increase in revenue. Why can't they afford to increase infrastructure to provide better service? Where is all the money going?

    --
    We'll make great pets
  14. Its the Old "Our Network Sucks" defense again? by Quantus347 · · Score: 2

    So you are saying your customers will have to pay more because your network sucks and cant handle the real world usage? Ya, thats a great thing to advertise....

    --
    Common Sense isn't as Common as people think...
  15. Re:AT&T. Never had 'em, never will by Analog+Penguin · · Score: 5, Insightful

    The controversy is that this is the latest in a long line of examples of AT&T bitching about people overburdening their poor network with their evil data-hogging ways instead of spending a goddamn dime to upgrade it from its current twine-and-tin-can infrastructure into something that can handle the needs of a 21st-century world superpower.

  16. Bob Quinn et. al. by interval1066 · · Score: 2

    Bob Quinn sneered at criticisms that restricting FaceTime...

    I think the company as a whole does that a lot. Especially to its customers.

    --
    Python: 'And then suddenly you have a language which says "we're all stuck with whatever the whiniest coder wants".'
  17. Mr. Quinn's argument is ridiculous by swillden · · Score: 4, Interesting

    I read the response to the question of whether AT&T's action violates net neutrality requirements... and any shyster lawyer would be proud of the crazy hair-splitting Quinn uses to justify his position that it does not.

    His argument basically boils down to a claim that it's not a violation of net neutrality for AT&T to block the FaceTime traffic because -- get this -- the app comes pre-installed. He states that if the app were installed from the app store and AT&T were then to block it, that would be a violation of net neutrality. He even points out that there are other video chat apps available on the app store which can be used over AT&T's cellular network (though he refuses to mention Google+ Hangouts directly).

    What makes it all really obnoxious is that he then tries to paint this lawyerly hair-splitting as a reasonable position. It is perhaps possible that he's actually right that AT&T's actions satisfy the letter of the FTC net neutrality regulation. But nobody with a brain can believe that it actually makes sense.

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    1. Re:Mr. Quinn's argument is ridiculous by zzsmirkzz · · Score: 4, Interesting

      because -- get this -- the app comes pre-installed.

      My thoughts are that since it is pre-installed, was advertised as a feature of the phone purchased and the cellular service contract that blocking it constitutes false advertising, bait-and-switch and the like. Cue the lawsuits!