Proposed FCC Web rule change draws wireless ire

Federal Communications Commission Chairman Julius Genachowski said wireless phone operators should not be able to discriminate against any Internet applications or content and would have to make management practices for Web traffic transparent. While he appeared to address operators' network management concerns, the wireless industry criticized the proposal and analysts said it could hurt profits for mobile operators, which had not been targeted by previous Net neutrality requirements. "The risk to the wireless carriers is that they won't be able to stop customers from using free voice and text services like Skype or Google voice," said Bernstein analyst Craig Moffett. "Voice and text are where they make all of their money." The new proposal could result in mobile customers cutting their phone bills by opting for minimum carrier voice plans and doing without text-messaging plans if they use mobile voice and text services from Skype and Google. Piper Jaffray analyst Christopher Larsen downplayed the
risk, saying that if they have to, operators would be sure to find a way to change their fees in order to maintain profits.