Wireless net neutrality puts Verizon and rivals on equal footing
Special no-blocking rules for Verizon's spectrum will apply to all carriers.
by Jon Brodkin
Ars technica
Feb 12 2015, 2:30pm CST
http://arstechnica.com/business/2015/02/wireless-net-neutrality-puts-verizon-and-rivals-on-equal-footing/
When Verizon Wireless spent more than $4 billion on a chunk of prime
700MHz spectrum in 2008, it came at the additional price of facing rules
that its rivals wouldn't have to follow. Google entered the auction to
make sure that it would hit the $4.6 billion reserve price that
triggered rules preventing Verizon from blocking applications or devices.
But now, all carriers may soon face rules that are similar to what
Verizon has followed. That's because Federal Communications Commission
Chairman Tom Wheeler is proposing to apply net neutrality rules equally
to fixed and mobile broadband networks, in contrast to previous net
neutrality rules that exempted wireless networks from key provisions.
The proposal's bans on blocking and throttling extend to legal content,
applications, services, and non-harmful devices. An FCC spokesperson
confirmed to Ars that the proposed net neutrality rules will have
essentially the same effect as the requirements applied to Verizon's
700MHz spectrum despite being worded differently.
The rules on Verizon's 700MHz C Block spectrum, in the 746-757 and
776-787MHz bands, say that "Licensees offering service on spectrum
subject to this section shall not deny, limit, or restrict the ability
of their customers to use the devices and applications of their choice."
There are exceptions for complying with technical standards necessary to
manage or protect the licensee's network and for complying with other
government rules.
The spectrum rules also prohibit handset locking, which prevents devices
from working on other providers' networks. That probably explains why
Verizon more often ships unlocked phones than its competitors. But the
net neutrality rules may not apply here.
"I don't believe the new rules will speak to unlocking," communications
attorney Matt Wood, the policy director for advocacy group Free Press,
told Ars. The net neutrality restrictions "are on the network side, not
the device side." That means carriers can't build their networks to
prevent devices from connecting, but they don't have to sell devices
that can connect to rivals' networks.
But even there, carriers have bent to Wheeler's will. Separately from
the net neutrality proceeding, carriers agreed to unlock customers'
devices after they've paid off their contracts. That doesn't require the
carriers to ship phones unlocked, but they have to let customers use
them on any compatible network once a customer owns a device outright.
Wood is happy that the net neutrality proposal bans blocking and
throttling of applications and devices. But applying the applications
rule will be more straightforward than the devices one, he said.
"There always have been excuses and explanations from US wireless
carriers—whether legitimate or otherwise—about the additional
complexities they face in authenticating devices and providing service
to them over cellular networks," Wood said. "A lot of those excuses are
called into serious doubt by the much more open architecture you see for
wireless devices in other countries, where the tight control that
carriers had over device manufacturers loosened much earlier than it did
here."
In 2012, the FCC ordered Verizon to stop blocking tethering apps on the
strength of the C Block rules. Last year, Verizon prevented the Nexus 7
from connecting to its LTE network for many weeks while it put the
device through its "certification process," even as other carriers
allowed the tablet on their networks. In that case, the FCC did not
intervene to make Verizon move faster.
"Verizon has rightfully been subject to a lot of complaints about the
length of time it takes them to authenticate and authorize new devices
that—in theory—should be ready to go on the C Block LTE network off the
shelf," Wood said. "I think that in general those complaints have been
resolved over time for each specific new device, but only after a lot of
foot-dragging by Verizon."
Wheeler's proposal, to be voted on February 26, will create new
complaint processes for consumers to get relief when providers break the
rules. Enforcement proceedings are typically slow, but the FCC has shown
that it can get results by simply pointing to the rules.
Verizon last year planned to start throttling unlimited LTE data plans
in congested areas. Wheeler objected, pointing to Verizon's C Block
obligations. Verizon denied that it was breaking any rules, saying it
isn't obligated to provide any particular minimum speed, but the company
still caved just before the new throttling program was scheduled to go
into place. Verizon continued to throttle unlimited data on 3G, which
wasn't subject to the C Block requirements. But the FCC could try to
eliminate unlimited data throttling on a wider basis after passing its
net neutrality rules. Wheeler's proposal specifically says providers
cannot claim to be doing "reasonable network management" when they
renege on promises to supply unlimited data.
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