Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 Alex Nguyen, Complainant, v. Proceeding Number 16-242 Bureau ID Number EB-16-MD-003 Cellco Partnership d/b/a Verizon Wireless, Defendants. ANSWER OF CELLCO PARTNERSHIP D/B/A VERIZON WIRELESS TABLE OF CONTENTS SUMMARY .................................................................................................................................... 1 I. PARTIES ............................................................................................................................ 8 II. BACKGROUND ................................................................................................................ 9 A. Answer to Allegations Regarding the C Block Rules and the 2012 Consent Decree ......................................................................................................................9 B. Answer to Allegations Regarding the 2015 Open Internet Order .........................15 C. Answer to Allegations that Device Providers Support LTE Band 13 for Compatibility with the Verizon Wireless Network ...............................................16 D. Answer to Allegations Regarding Verizon’s Device Sales ...................................16 E. Answer to Allegations Regarding Verizon’s Device Certification Process ..........17 F. Answer to Allegations Regarding the Length of Verizon’s Device Certification Process ..............................................................................................20 III. ANSWER TO ALLEGATIONS THAT VERIZON INTERFERES WITH CUSTOMERS’ ABILITY TO USE THE DEVICES OF THEIR CHOICE .................... 21 A. Answer to Allegations Regarding the Asus Nexus 7 Tablet ..................................24 B. Answer to Allegations Regarding Apple iPhone 6 and iPhone 6 Plus Devices ...................................................................................................................27 C. Answer to Allegations Regarding Third Party Motorola Nexus 6 Smartphones ...........................................................................................................29 D. Answer to Allegations that Verizon Blocked Other Third Party Devices .............30 IV. ANSWER TO ALLEGATIONS THAT VERIZON IMPOSES DISCRIMINATORY PRICING ON CUSTOMERS WHO BRING THEIR OWN DEVICE ............................................................................................................................ 32 V. ANSWER TO ALLEGATIONS THAT VERIZON INTERFERES WITH EDGE PROVIDERS’ ABILITY TO MAKE DEVICES OF THEIR CHOICE AVAILABLE TO CUSTOMERS .................................................................................... 38 A. Answer to Allegations Regarding FM Radio Capabilities ....................................38 B. Answer to Allegations Regarding Apple SIMs .....................................................40 VI. ANSWER TO ALLEGATIONS THAT VERIZON INTERFERES WITH CUSTOMERS’ ABILITY TO USE APPLICATIONS OF THEIR CHOICE AND EDGE PROVIDERS’ ABILITY TO MAKE APPLICATIONS OF THEIR CHOICE AVAILABLE TO CUSTOMERS .................................................................... 40 A. Answer to Allegations Regarding Tethering Features ...........................................41 B. Answer to Allegations that Verizon Compelled Customers To Use Family Base and Blocked Samsung from Enabling Blocking Mode .................................42 C. Answer to Allegations that Verizon Compelled Samsung To Preload Isis Wallet and Blocked Pay with PayPal .....................................................................42 D. Answer to Allegations that Verizon Compelled Samsung To Preload Verizon Cloud and Blocked Samsung from Preloading Microsoft OneDrive ................................................................................................................43 E. Answer to Allegations that Verizon Compelled Samsung To Preload Android Pay and Blocked Samsung Pay ...............................................................45 F. Answer to Allegations Regarding Samsung Internet 4.0 .......................................49 G. Answer to Allegations Regarding Called ID and Whitepages ...............................50 VII. ANSWER TO ALLEGATIONS REGARDING COMPATABILITY OF THIRD PARTY DEVICES............................................................................................................ 51 VIII. ANSWER TO ALLEGATIONS REGARDING DENYING NETWORK ACCESS ........................................................................................................................... 53 IX. ANSWER TO COUNT ONE ........................................................................................... 54 A. Answer to Allegations Regarding Customers’ Use of Devices of Their Choice ....................................................................................................................54 B. Answer to Claims Regarding Alleged “Block[ing of]” Non-Harmful Devices ...................................................................................................................56 C. Answer to Allegations Regarding Consumer Choice ............................................56 D. Answer to Allegations Regarding Competitive Effects .........................................57 E. Answer to Allegations Regarding Reasonable Network Management ..................58 F. Answer to Allegations Regarding Discrimination Against Third Party Devices ...................................................................................................................59 G. Answer to Allegations Regarding Protecting the Network....................................60 ii X. ANSWER TO COUNT TWO .......................................................................................... 63 A. Answer to Allegations Regarding Customers’ Ability To Use Devices of Their Choice...........................................................................................................66 B. Answer to Allegations Regarding the Scope of the “No Blocking” Rule .............66 C. Answer to Allegations Regarding Competitive Effects .........................................66 D. Answer to Allegations Regarding Whether Verizon Discriminated Against Customers Bringing Their Own Devices under 47 U.S.C. § 202(a) ......................66 E. Answer to Allegations Regarding Application of Line Access Discounts ............67 F. Answer to Allegations Regarding Permitted Incentives ........................................68 XI. ANSWER TO COUNT THREE ....................................................................................... 69 XII. ANSWER TO COUNT FOUR ......................................................................................... 70 A. Answer to Allegations that Verizon Limits Customers’ Ability To Use the Devices and Applications of Their Choice and Edge Providers’ Ability To Develop the Devices and Applications of Their Choice ........................................71 B. Answer to Allegations that Verizon Requested Applications Be Made Unavailable to Customers ......................................................................................72 C. Answer to Allegations Regarding “Blocked” Applications ...................................74 D. Answer to Allegations Regarding Consumer Choice ............................................74 E. Answer to Allegations Regarding Competitive Effects .........................................74 F. Answer to Allegations Regarding Adoption of Innovative Applications ..............75 G. Answer to Allegations that Verizon’s Practices Are Motivated Primarily by Business Reasons ..............................................................................................76 H. Answer to Additional Allegations Regarding Tethering .......................................76 I. Answer to Additional Allegations that Verizon Discriminates Against Applications that Compete Against “Verizon-Backed Applications” ...................79 J. Answer to Allegations that “Blocking” Preloading of Applications Is “Blocking” .............................................................................................................79 K. Answer to Allegations that Verizon Can Still “Block” Devices that Verizon Does Not Block ........................................................................................80 iii XIII. ANSWER TO COUNT FIVE ........................................................................................... 80 XIV. ANSWER TO COUNT SIX ............................................................................................. 81 XV. ANSWER TO PRAYER FOR RELIEF ........................................................................... 83 A. Answer to Request for Declaratory Relief .............................................................83 B. Answer to Request that the Commission Prohibit Verizon from Participating in Certification of Devices and Applications for Its Own Network..................................................................................................................83 C. Answer to Request that the Commission Ensure No Interference with Complainant’s Ability To Use Devices and Applications of His Choice or Edge Providers’ Ability To Make Devices and Applications Available to Complainant ...........................................................................................................86 D. Answer to Request that the Commission Dictate Verizon’s Pricing .....................87 E. Answer to Request that the Commission Force Verizon To Provide SIM Cards for Any and All