Skype Mobile Openness Advocacy Briefing Book
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SKYPE MOBILE OPENNESS ADVOCACY BRIEFING BOOK Table of Contents I. Summary: Skype on Mobile Openness II. Relevant Documents a. Wireless Net Neutrality: Cellular Carterfone on Mobile Networks by Tim Wu, Professor, Columbia University School of Law b. Wireless Carterfone: Skype’s FCC Filing (2-20-07) c. Wireless Carterfone: Skype’s Reply to Comments (5-15-07) d. 700 MHz: Skype Letter (7-10-07) e. Wireless Carterfone: Skype’s Letter to Kevin Martin (7-24-07) f. Remarks of FCC Commissioner Michael Copps at New America Foundation Forum: “Free My iPhone” (1-22-08) g. Wireless Carterfone: Skype Ex Parte (5-22-08) h. Wireless Carterfone: Skype’s Letter to Kevin Martin (9-12-08) i. Wireless Carterfone: Skype’s Response to CTIA (10-8-08) j. Wireless Carterfone: Skype Ex Parte (12-9-08) k. Wireless Internet Policy Statement: Free Press Letter (4-3-09) III. Notable Media Coverage a. Skype asks FCC to open up cellular networks, Ars Technica (2-21-07) b. Skype Asks FCC to Extend Carterfone Rights To Wireless Devices, Lower Carrier Leverage, Washington Telecom Insider (2-23-07) c. Carrier control of networks in cross hairs, RCR Wireless News (2-24-07) d. Futurist: Wireless Without Strings, CQ Weekly (3-5-07) e. Net Neutrality's threat to wireless, FierceWireless (3-8-07) f. Wireless broadband is ‘information service’, RCR Wireless News (3-24-07) g. Internet Companies Push For Mobile Phone Carriers to Open Up, ReadWriteWeb (6-6-07) h. When Mobile Phones Aren’t Truly Mobile, The New York Times (7-22-07) i. Google and eBay fight the phone companies, Salon.com (7-25-07) j. Skype’s rallying cry, RCR Wireless News (10-23-07) k. FCC Auction May Expand Cellphone Options, Services, Wall Street Journal (8-8-07) l. Handcuffs Chafe Wireless Users, USA Today (8-23-07) m. Free My Phone, Wall Street Journal (10-22-07) n. On the Hot Seat with Skype's Christopher Libertelli, FierceWireless (2-1-08) o. Paradigm shift or an open question, RCR Wireless News (4-1-08) p. FCC coming to Stanford Thursday to talk network management, San Francisco Chronicle (4-15-08) q. Open Access: No one’s sure of definitions in this new territory, RCR Wireless News (10-22-08) r. Skyping The New FCC, Forbes.com (4-1-09) s. Skype's iPhone limits irk some consumer advocates, USA Today (4-2-09) t. Skype moves in on the cellphone industry, Boston Globe (4-9-09) u. Open Mobile Internet Now!, Wired.com’s Epicenter Blog (4-9-09) v. Google, Apple and Microsoft Knuckle Under to Telcos, Wired.com’s Epicenter Blog (5-7-09) w. FTC chairman: Agency may enforce net neutrality, IDG News Service (5-12- 09) IV. History of Videophones Skype on Mobile Openness As more and more consumers use the mobile Internet, consumer demand for mobile applications is likewise increasing. Device manufacturers are investing in entirely new categories of “mobile internet devices” that are as capable as today’s laptops. Consumers understand the significant benefits of being able to communicate and interact while on the go. To meet this consumer demand, Skype invested in and developed a mobile version of Skype that is compatible with all of the major mobile operating systems – Windows Mobile, Android and iPhone. The mobile version of Skype is available to download for free. Mobile network operators, fearing that consumers would migrate some of their conversations from the carriers’ voice networks to their data networks, have adopted restrictive terms of use, hobbled mobile “application stores” and threaten network management techniques that would block the right of consumers to download and utilize applications of their choice. To protect the right of consumers to choose how to use their mobile Internet service, Skype filed a petition in 2007 seeking an FCC ruling that the Carterfone rules apply to mobile platforms, just as they apply in the wired world. Through its Carterfone petition, Skype is leading industry efforts to create a balanced innovation policy that protects consumer choice in the wireless marketplace. Skype’s Carterfone Petition will ensure an innovation policy where value is shared across the mobile Internet. Network operators, application developers and consumers win if the FCC grants Skype’s request for a “multi-modal” approach to innovation. The Skype Petition asks that the Commission affirm that two important consumer rights in the FCC’s Broadband Policy Statement — the rights to attach devices of their choice to and to use applications of their choice with broadband networks — apply to wireless networks. These rights not only promote consumer choice, but also provide a degree of regulatory certainty, giving equipment manufacturers and software applications developers the confidence that they can reach consumers without network operators playing a gatekeeper role. Even during its pendency, the Skype Petition has had a positive impact on the debate regarding consumer rights and wireless openness in that the FCC and many other parties already have acknowledged consumer expectations for devices and applications that allow them to interconnect and move their communications seamlessly between mobile and other networks. For example, the Commission adopted openness conditions for the 700 MHz C Block, requiring that the winner of that auction (Verizon) allow consumers to use devices and applications of their choice on the C Block spectrum. Despite this positive, but limited, development and the carriers’ claims of openness, they continue arbitrarily to close their networks to many devices and applications and to prohibit the unobstructed use of Skype. For example, AT&T refused – for competitive reasons – to permit their subscribers full access to Skype’s popular iPhone application. Though the Skype for iPhone application was downloaded over 2 million times after just over a week of being released, iPhone users are limited to Wi-Fi networks and cannot use the Skype application over AT&T’s 3G network. The choice to use Skype on a mobile device should be the consumer’s need for effective communications and not AT&T's competitive concern. By granting the Skype Petition, the Commission will confirm for consumers that the Broadband Policy Statement applies to all broadband networks. This policy will ensure that consumers are able to access the applications and utilize the devices of their choice on any broadband network. Moreover, it will enable software defined or “multi-modal” competition and innovation policy where AT&T, Verizon and others compete at the access layer and equally, Skype and many other Internet applications innovate at the application layer. Protecting consumer rights on all broadband platforms, including mobile, is the only policy that consistently and reliably will maximize consumer benefits and ultimately will create a universally beneficial ecosystem driving greater competition and usage of the carriers’ mobile data services. It is this “demand pull” effect that will deploy the next generation of wireless services to all Americans. ### Mobile Openness Advocacy Briefing Book Relevant Documents NEW AMERICA FOUNDATION WIRELESS FUTURE PROGRAM Working Paper #17 ver. 2.1 February 2007 Wireless Net Neutrality: CELLULAR CARTERFONE ON MOBILE NETWORKS By Tim Wu∗ Over the next decade, regulators will spend increasing time on conflicts between the private interests of the wireless industry and the public’s interest in the best uses of its spectrum. This report examines the practices of the wireless industry with an eye toward understanding their influence on innovation and consumer welfare. In many respects, the mobile wireless market is and remains a wonder. Thanks to both policy and technological innovations, devices that were science fiction thirty years ago are now widely available. Over the last decade, wireless mobile has been an “infant industry,” attempting to achieve economies of scale. That period is over: today, in the United States, there are over 200 million mobile subscribers, and mobile revenues are over $100 billion. As the industry and platform mature, the wireless industry warrants a new look. This report finds a mixed picture. The wireless industry, over the last decade, has succeeded in bringing wireless telephony at competitive prices to the American public. Yet at the same time, we also find the wireless carriers aggressively controlling product design and innovation in the equipment and application markets, to the detriment of consumers. In the wired world, their policies would, in some cases, be considered simply misguided, and in other cases be considered outrageous and perhaps illegal. Four areas warrant particular attention: 1. Network Attachments – Carriers exercise excessive control over what devices may be used on the public’s wireless spectrum. The carriers place strong controls over “foreign attachments,” like the AT&T of the 1950s. The FCC’s Carterfone rules, which allow consumers to attach devices of their choice to the wired telephone networks, do not apply to wireless networks. ∗ Tim Wu is Professor, Columbia University School of Law. Electronic copy of this paper is available at: http://ssrn.com/abstract=962027 These controls continue to affect innovation and the development of new devices and applications for wireless networks. 2. Product Design and Feature Crippling – By controlling entry, carriers are in a position to exercise strong control over the design of mobile equipment. They have used that power to force equipment developers to omit or cripple many consumer-friendly features. Carriers have also forced manufacturers to include technologies, like “walled garden” Internet access, that neither equipment developers nor consumers want. Finally, through under-disclosed “phone-locking,” the U.S. carriers disable the ability of phones to work on more than one network. A list of features that carriers have blocked, crippled, modified or made difficult to use, at one time or another, include: • Call timers on telephones, • Wi-Fi technology, • Bluetooth technology, • GPS services, • Advanced SMS services, • Internet browsers, • Easy photo file transfer capabilities, • Easy sound file transfer capabilities, • Email clients, and • SIM Card mobility.