Is Verizon Wireless illegally blocking Google Wallet? It’s time for the FCC to investigate

Two weeks ago, various news outlets reported that Verizon Wireless’s new Galaxy Nexus phone will not support Google Wallet, Google’s mobile payment application. Based on what we know from press reports, it seems that Verizon Wireless is violating the open-devices and open-applications conditions in its legal licenses for part of the 700 MHz spectrum (the so-called “C-Block”) over which the company’s LTE network operates. There is, however, great uncertainty about what exactly is going on.

I wrote a letter to the Federal Communications Commission asking the Commission to investigate the situation as quickly as possible and send a signal to the market – innovators, consumers, and licensees – that the openness conditions will be enforced. The letter explains what we know about the facts, why Verizon’s behavior violates the openness conditions, why this violation matters, and what the FCC should do.

This is an important case that will have implications not only for the mobile payments market, but also for any application or service potentially available on a mobile network:

• First, Verizon’s behavior hurts Verizon customers
• Second, Verizon’s behavior hurts competition in the emerging, potentially huge market for mobile payments technologies and associated services.
• Third, Verizon’s actions hurt innovation, in mobile payments or even in any other mobile technology.
• Finally, Verizon’s conduct undermines the FCC’s general approach towards mobile Internet openness