AT&T's Bid To Prevent Wireless Neutrality Rules

Last year, as the Federal Communications Commission was investigating Comcast's blocking of peer-to-peer visits, the Internet service provider announced that it would develop a protocol-neutral system of traffic management. Now, with policymakers focusing on competition in the wireless industry, AT&T has said it no longer objects to Skype and other VoIP apps running on the iPhone's 3G network. AT&T's change of heart comes five months after broadband advocates complained to the FCC about AT&T and Apple limiting VoIP apps for the iPhone to the Wi-Fi network. It also comes just several weeks after FCC chair Julius Genachowski proposed that the agency enact neutrality regulations that would extend to wireless broadband networks. AT&T seems poised to argue that its decision to allow VoIP apps on the 3G network shows there's no need for such rules -- at least for the wireless Web. The company has already made clear it opposes wireless neutrality rules. Just today, AT&T Mobility chief Ralph de la Vega insisted at CTIA that "the marketplace is vibrant" and that there is "is no need to burden the mobile Internet with onerous new regulations."

S. Derek Turner, research director of Free Press, said, "The FCC's oversight and forward thinking has prompted AT&T to halt their anti-competitive practices. After more than two years of blocking VoIP applications, the FCC has succeeded in getting AT&T to open their network to the applications consumers want. We commend the agency and are pleased that consumers will now finally have access to more applications like Skype. But the FCC should not be distracted or delayed in efforts to protect Net Neutrality on all networks, to investigate the exclusive contracts that punish consumers, and to promote a truly competitive wireless market. The arm-twisting that led to AT&T's belated announcement is a critical reminder of why we need the FCC walking the beat to protect consumers."