Martin Backing Open Access Rules for 700 MHz
Proposed rules mandating conditional open access rules for the 700 MHz auction could be circulated as early as today, FCC officials said. The rules prompted heated debate ahead of today’s (Wednesday) hearing on the issue by the House Commerce Telecom Subcommittee. Consumer and public interest groups say FCC Chairman Kevin Martin’s proposal does not go far enough to ensure adequate market competition.
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“We've reached the end of the first generation of wireless policy,” said Timothy Wu, professor at Columbia Law School who is scheduled to testify at the hearing. “This is the second generation prompted by consumers, the iPhone and device makers,” Wu said, suggesting that new rules are needed to accommodate technological developments. Wireless carriers must stop blocking services to consumers, something that’s “long overdue,” Wu said. Such practices, along with consumers’ inability to move a mobile phone from one carrier to another, create an anticompetitive market, he said.
Word of an imminent Martin open access rulemaking had phones ringing and emails flying Tuesday as lobbyists tried to guess how far the rules would go. House Commerce Telecom Subcommittee Chairman Edward Markey, D-Mass., strongly backs open access rules tilted toward consumer interests. “I have repeatedly advocated that the FCC should seize the opportunity in the upcoming auction to foster greater innovation for wireless devices and applications,” Markey said, adding that he welcomed indications that Martin would back rules requiring auction winners to let content providers offer any services and applications that don’t interfere with the network.
But not all members of Congress like the development. A letter signed by 37 Republicans and Democrat Dan Boren of Okla. urged the Commission to “critically view” proposals to set open access rules dictating how auction licensees should manage networks. Rep. Marsha Blackburn, R-Tenn., a former House Telecom Subcommittee member active on telecom, was among the driving forces behind the letter. The signatories said they feared commission efforts could impinge on public safety communications capabilities. Meanwhile, Reps. Jane Harman, D-Calif., and Chip Pickering, R-Miss., Wednesday wrote Martin a letter asking for an open access requirement on the E-block of spectrum. This would promote innovation and help first responders, the letter said.
“Half a loaf is no loaf,” said Janice Obuchowski, chairman of Frontline Wireless, which is trying to persuade Congress and the commission that its hybrid public-private partnership would solve some public safety problems. Obuchowski called Martin’s reported move toward open access rules a positive step but added that “for open access to benefit American innovation and consumers, it has to have meaning, including no blocking of content or locking of features.”
Consumers Union will be pressing Congress to act on early termination fees, said General Counsel Chris Murray. Wireless carriers have stifled consumer access to applications, such as Blackberry’s map program, he said. “What’s going on here?” Murray asked, saying that wireless carriers’ practices mean a “lot less innovation and higher prices.”
Witnesses to appear at Wednesday’s hearing, along with Wu and Murray, are Tony Clark, commissioner, North Dakota Public Service Commission; Jason Devitt,, CEO of Skydeck; Ed Evans, CEO of Stelera Wireless; Steve Zipperstein, general counsel of Verizon Wireless; and Phillip Verveer, partner, Willkie Farr & Gallagher.