[WISPA] FCC Auction Should Allow for Open Wireless Network, Say Lawmakers

2007-07-12 Thread David Hughes
FCC Auction Should Allow for Open Wireless Network, Say Lawmakers

By Kim Hart
Washington Post Staff Writer
Thursday, July 12, 2007; D08

Key lawmakers on Capitol Hill yesterday supported the idea that regulators
should give consumers greater control over how they use their cellphones.

Several members of a House subcommittee voiced agreement with a proposal
that would require a portion of valuable airwaves about to be auctioned off
by the Federal Communications Commission to be used for an open network
that would connect to any mobile device or service. Such a rule would
benefit technology companies such as Google, Intel, Yahoo and Skype, who
want more ways to reach their customers without going through carriers. The
plan could hurt wireless carriers, who say unfettered access to their
networks would undermine billions of dollars of investment for high-speed
services.

This issue of open access lies at the center of the debate about rules that
will govern the spectrum auction, which are expected to be released this
month. FCC Chairman Kevin J. Martin has proposed setting aside one-third of
the spectrum for an open network that would work with any cellphone.

Supporters of Google and its partners say an open network would promote
innovation by letting consumers use services on new devices like the iPhone
without being limited to a single network. But critics argue that placing
such conditions on the bidding process would actually stifle competition and
reduce revenues from the auction, which is expected to yield between $15
billion and $20 billion for the U.S. Treasury.

Rep. Edward J. Markey (D-Mass.), who chairs the subcommittee that handles
telecommunications and Internet issues, urged the FCC to seize this
opportunity to create an open-access opportunity for wireless service in
this auction. He added that wireless carriers are exerting far too much
control over the features, functions and applications that wireless gadget
makers and content entrepreneurs can offer directly to consumers.

Ranking Republican Fred Upton of Michigan countered by saying the wireless
market is already vigorously competitive.

No matter how you slice it, he said, the proposal smothers investment in
a competitive market, and in the end would leave consumers worse off and
with fewer choices.

The four-hour hearing highlighted the divergent views of policymakers and
industry representatives on the consequences of using a slice of the
spectrum for an open-access network.

Steven E. Zipperstein, general counsel for Verizon Wireless, testified that
competition already forces wireless companies to invest in new products and
networks, ultimately benefiting consumers. He also said that any open-access
requirement would make the spectrum less valuable to companies like Verizon
Wireless.

But Jason Devitt, who runs a Silicon Valley start-up that sells wireless
products and services, disagreed. While the major carriers such as Verizon
Wireless and ATamp;T bring new products to market, he said, there are so
many other products and services not getting in front of consumers because
carriers act as gatekeepers.

I'm an entrepreneur, and I'm mad as hell I have to ask for permission to
innovate, he said, referring to what he called the wireless companies'
death grip on the market.

Google, which has been lobbying Congress and the FCC in favor of open
networks, has not decided whether it will formally bid on a piece of the
spectrum and build a wireless network. On the company's public policy blog,
Google's Washington telecom and media counsel, Richard Whitt, wrote Tuesday
that the company was still interested in participating in the auction but
said it's clear that the incumbent carriers have built-in advantages that
will prove difficult to overcome.

Google said it favors openness that allows all services, applications and
devices to work on the wireless network.

Some consumer advocates say the auction rules Martin proposed this week do
not go far enough to promote real competition. In addition to allowing any
device to connect to the network, the FCC should require the auction winner
to wholesale the spectrum to companies that impose no rules on what type of
services and equipment consumers can use, said Art Brodsky of Public
Knowledge, an advocacy group.

Martin seems to be testing the waters, Brodsky said, with draft rules that
seem to favor high-tech companies over the major telecom carriers.

He wants to see the congressional and industry reaction, he said. He's
trying to see what kind of support he'll get.


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WISPA Wireless List: 

RE: [WISPA] FCC Auction Should Allow for Open Wireless Network, Say Lawmakers

2007-07-12 Thread Drew Lentz
Hi there! New to the list but wanted to jump in with comments:

This was, IMO, a great hearing. I watched about the first 2 hours of it and
was delighted by the responses of the witnesses. Hearing the chair of the
committee refer to the ATT iPhone contract as being a Hotel California
service where you can signup, but never leave with your iPhone made me
chuckle. But it was Jason Devitt that drove it home for me, paraphrasing
from his prepared testimony, 

Open Access is an unfamiliar term for a very familiar idea. The private
companies who build and maintain our highways don't get to dictate what kind
of car I drive. I don't have to ask Wal-Mart for permission to open a retail
store next door to one of theirs. ConEd and PGE can't limit my choice of
vacuum cleaner, and I don't have to ask Verizon for permission to launch a
web site. However, I have to ask Verizon Wireless for permission to sell a
phone that runs on their network or an application that runs on their
phones.

If you are interested in watching an archived version or reading more of the
witness testimony, it's online @
http://energycommerce.house.gov/cmte_mtgs/110-ti-hrg.071107.ConsumerProtecti
on.shtml

Have a great day, and I look forward to contributing to this list :)

-drew

Drew Lentz
[EMAIL PROTECTED]

-Original Message-
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of David Hughes
Sent: Thursday, July 12, 2007 7:15 AM
To: 'WISPA General List'
Subject: [WISPA] FCC Auction Should Allow for Open Wireless Network,Say
Lawmakers

FCC Auction Should Allow for Open Wireless Network, Say Lawmakers

By Kim Hart
Washington Post Staff Writer
Thursday, July 12, 2007; D08

Key lawmakers on Capitol Hill yesterday supported the idea that regulators
should give consumers greater control over how they use their cellphones.

Several members of a House subcommittee voiced agreement with a proposal
that would require a portion of valuable airwaves about to be auctioned off
by the Federal Communications Commission to be used for an open network
that would connect to any mobile device or service. Such a rule would
benefit technology companies such as Google, Intel, Yahoo and Skype, who
want more ways to reach their customers without going through carriers. The
plan could hurt wireless carriers, who say unfettered access to their
networks would undermine billions of dollars of investment for high-speed
services.

This issue of open access lies at the center of the debate about rules that
will govern the spectrum auction, which are expected to be released this
month. FCC Chairman Kevin J. Martin has proposed setting aside one-third of
the spectrum for an open network that would work with any cellphone.

Supporters of Google and its partners say an open network would promote
innovation by letting consumers use services on new devices like the iPhone
without being limited to a single network. But critics argue that placing
such conditions on the bidding process would actually stifle competition and
reduce revenues from the auction, which is expected to yield between $15
billion and $20 billion for the U.S. Treasury.

Rep. Edward J. Markey (D-Mass.), who chairs the subcommittee that handles
telecommunications and Internet issues, urged the FCC to seize this
opportunity to create an open-access opportunity for wireless service in
this auction. He added that wireless carriers are exerting far too much
control over the features, functions and applications that wireless gadget
makers and content entrepreneurs can offer directly to consumers.

Ranking Republican Fred Upton of Michigan countered by saying the wireless
market is already vigorously competitive.

No matter how you slice it, he said, the proposal smothers investment in
a competitive market, and in the end would leave consumers worse off and
with fewer choices.

The four-hour hearing highlighted the divergent views of policymakers and
industry representatives on the consequences of using a slice of the
spectrum for an open-access network.

Steven E. Zipperstein, general counsel for Verizon Wireless, testified that
competition already forces wireless companies to invest in new products and
networks, ultimately benefiting consumers. He also said that any open-access
requirement would make the spectrum less valuable to companies like Verizon
Wireless.

But Jason Devitt, who runs a Silicon Valley start-up that sells wireless
products and services, disagreed. While the major carriers such as Verizon
Wireless and ATamp;T bring new products to market, he said, there are so
many other products and services not getting in front of consumers because
carriers act as gatekeepers.

I'm an entrepreneur, and I'm mad as hell I have to ask for permission to
innovate, he said, referring to what he called the wireless companies'
death grip on the market.

Google, which has been lobbying Congress and the FCC in favor of open
networks, has not decided whether it will formally bid on a piece of the
spectrum

Re: [WISPA] FCC Auction Should Allow for Open Wireless Network, Say Lawmakers

2007-07-12 Thread Michael Erskine
Gawd, it is this kind of thing that makes me wish I was a Democrat.  Why 
can't we all find the

middle?

-m-

David Hughes wrote:

FCC Auction Should Allow for Open Wireless Network, Say Lawmakers

By Kim Hart
Washington Post Staff Writer
Thursday, July 12, 2007; D08

Key lawmakers on Capitol Hill yesterday supported the idea that regulators
should give consumers greater control over how they use their cellphones.

Several members of a House subcommittee voiced agreement with a proposal
that would require a portion of valuable airwaves about to be auctioned off
by the Federal Communications Commission to be used for an open network
that would connect to any mobile device or service. Such a rule would
benefit technology companies such as Google, Intel, Yahoo and Skype, who
want more ways to reach their customers without going through carriers. The
plan could hurt wireless carriers, who say unfettered access to their
networks would undermine billions of dollars of investment for high-speed
services.

This issue of open access lies at the center of the debate about rules that
will govern the spectrum auction, which are expected to be released this
month. FCC Chairman Kevin J. Martin has proposed setting aside one-third of
the spectrum for an open network that would work with any cellphone.

Supporters of Google and its partners say an open network would promote
innovation by letting consumers use services on new devices like the iPhone
without being limited to a single network. But critics argue that placing
such conditions on the bidding process would actually stifle competition and
reduce revenues from the auction, which is expected to yield between $15
billion and $20 billion for the U.S. Treasury.

Rep. Edward J. Markey (D-Mass.), who chairs the subcommittee that handles
telecommunications and Internet issues, urged the FCC to seize this
opportunity to create an open-access opportunity for wireless service in
this auction. He added that wireless carriers are exerting far too much
control over the features, functions and applications that wireless gadget
makers and content entrepreneurs can offer directly to consumers.

Ranking Republican Fred Upton of Michigan countered by saying the wireless
market is already vigorously competitive.

No matter how you slice it, he said, the proposal smothers investment in
a competitive market, and in the end would leave consumers worse off and
with fewer choices.

The four-hour hearing highlighted the divergent views of policymakers and
industry representatives on the consequences of using a slice of the
spectrum for an open-access network.

Steven E. Zipperstein, general counsel for Verizon Wireless, testified that
competition already forces wireless companies to invest in new products and
networks, ultimately benefiting consumers. He also said that any open-access
requirement would make the spectrum less valuable to companies like Verizon
Wireless.

But Jason Devitt, who runs a Silicon Valley start-up that sells wireless
products and services, disagreed. While the major carriers such as Verizon
Wireless and ATamp;T bring new products to market, he said, there are so
many other products and services not getting in front of consumers because
carriers act as gatekeepers.

I'm an entrepreneur, and I'm mad as hell I have to ask for permission to
innovate, he said, referring to what he called the wireless companies'
death grip on the market.

Google, which has been lobbying Congress and the FCC in favor of open
networks, has not decided whether it will formally bid on a piece of the
spectrum and build a wireless network. On the company's public policy blog,
Google's Washington telecom and media counsel, Richard Whitt, wrote Tuesday
that the company was still interested in participating in the auction but
said it's clear that the incumbent carriers have built-in advantages that
will prove difficult to overcome.

Google said it favors openness that allows all services, applications and
devices to work on the wireless network.

Some consumer advocates say the auction rules Martin proposed this week do
not go far enough to promote real competition. In addition to allowing any
device to connect to the network, the FCC should require the auction winner
to wholesale the spectrum to companies that impose no rules on what type of
services and equipment consumers can use, said Art Brodsky of Public
Knowledge, an advocacy group.

Martin seems to be testing the waters, Brodsky said, with draft rules that
seem to favor high-tech companies over the major telecom carriers.

He wants to see the congressional and industry reaction, he said. He's
trying to see what kind of support he'll get.


Would you like to see your advertisement here?  Let the WISPA Board know your 
feelings about allowing advertisements on the free WISPA lists.  The current 
Board is taking this under consideration at this time.  We want