Wireless Net Neutrality

As broadband data communication moves into the mobile, wireless world, should basic concepts of “network neutrality” that exist in the wireline world be applied to the wireless industry? On February 21, Voice-over-IP provider Skype filed a petition requesting that the FCC affirm the right of consumers to attach any legal device (such as a VoIP-enabled cell phone) to cellular networks, as embodied in the Commission’s Carterfone rules that are currently observed in the wireline telephone world.

Skype’s petition referred extensively to evidence and arguments from a new paper released by the New America Foundation, authored by network neutrality expert Tim Wu. In the paper, entitled, “Wireless Net Neutrality: Cellular Carterfone and Consumer Choice in Mobile Broadband,” Wu offers a scathing critique of today’s dominant mobile phone carriers. He demonstrates that wireless carriers inhibit innovation and violate network neutrality by exerting undue control over the wireless device and applications industries, and by offering discriminatory broadband data services with undisclosed bandwidth limits and restrictions on access to content and applications. The report recommends, among other things, applying the FCC’s Carterfone rules and other network neutrality principles to the world of mobile phones in order to jumpstart innovation and enhance consumer welfare.

The cellular industry disagrees with the call to apply network neutrality principles to the wireless world, arguing that current industry practices already promote consumer welfare and are necessary to maintain network service and security. At this lunchtime policy forum, representatives from different sides of the debate weighed in.

Tim Wu introduced his headline-grabbing new paper. Christopher Libertelli of Skype and consumer advocate Jeannine Kenney discussed why wireless network neutrality will benefit innovators and consumers. Michael Altschul of CTIA argued why carriers believe wireless network neutrality is unnecessary. And investment analyst Blair Levin discussed the potential market implications of applying network neutrality to the wireless industry.

Participants

• Tim Wu
  Professor, Columbia University Law School
• Michael Altschul
  Senior Vice President and General Counsel, CTIA- The Wireless Association
• Christopher Libertelli
  Director, Government and Regulatory Affairs, Skype
• Jeannine Kenney
  Senior Policy Analyst, Consumers Union
• Blair Levin
  Managing Director, Stifel Nicolaus
• Michael Calabrese (moderator)
  Vice President and Director, Wireless Future Program, New America Foundation

Related Links

Wireless Net Neutrality: Cellular Carterfone and Consumer Choice in Mobile Broadband
Working Paper by Tim Wu

Skype Wireless Device Petition