FCC Rules Big Carriers Must Share Networks With Smaller Operators

WASHINGTON — Federal regulators adopted rules Thursday to drive more competition in wireless broadband as more people access the Internet using iPhones and other popular mobile devices.

The Federal Communications Commission voted 3-2 on Thursday to require big wireless carriers to open their data networks to smaller regional operators in places where they don't have their own systems. The large carriers have to offer network access at reasonable prices, and the FCC would resolve any disputes.

The so-called "data roaming" rules are a response to consolidation in an industry dominated by two nationwide carriers, AT&T Inc. and Verizon Wireless. And they come just weeks after AT&T, the nation's second-largest wireless company, announced plans to buy T-Mobile USA, the fourth-largest, in a $39 billion cash-and-stock deal.

Existing voice roaming rules already allow regional competitors to use the big carriers' networks to handle phone calls outside their own service territories. That enables Leap Wireless, for instance, to offer nationwide calling service. It pays other carriers for access to their systems when customers make calls outside Leap's service area.

But smaller wireless providers say they need to be able to be able to do that with data, too, as subscribers increasingly use smartphones not just to make phone calls but to send pictures, watch online video and access bandwidth-hungry mobile applications.

"Consumers ... expect to use their mobile phones throughout the nation for voice calls or data – like email or mobile apps," said FCC Chairman Julius Genachowski, a Democrat.

Parul Desai, policy counsel for the consumer watchdog group Consumers Union, said the new rules should help lower prices by giving consumers more choices for nationwide data services.

Steven Berry, president and chief executive of the Rural Cellular Association, added that the rules should make it easier for rural carriers to grow by ensuring that they can get the nationwide data roaming agreements they need to attract customers and funding for their networks.

"In this day and age, consumer expectations are that their devices work anytime, anyplace, anywhere," Berry said. "What consumer would buy a phone that only works in one small regional area?"

The FCC's three Democrats voted to adopt the data-roaming rules over the opposition of the agency's two Republicans. Republican Robert McDowell said he believes the agency lacks the legal authority to impose such requirements on the wireless industry.

AT&T and Verizon warned that they will have less incentive to invest in their high-speed wireless networks if they have to share them with competitors at regulated rates. In a statement, Verizon said the rules represent "a new level of unwarranted government intervention."

But Sprint Nextel Corp., the nation's third largest wireless carrier, and Leap Wireless, parent of the smaller Cricket phone service, welcomed the rules.

Comments

[PhillyKing]

02:15 PM on 04/11/2011

"The FCC's three Democrats voted to adopt the data-roaming rules over the opposition of the agency's two Republicans. Republican Robert McDowell said he believes the agency lacks the legal authority to impose such requirements on the wireless industry."... why is it alway that party to oppose anything that helps out the smaller guys??

"AT&T and Verizon warned that they will have less incentive to invest in their high-speed wireless networks if they have to share them with competitors at regulated rates. "... like they're not gonna better their servive for their customers... oh wait... that's an empty threat no matter what cause they'll use any excuse to not have to better their networks and bring in the same cash...

"In a statement, Verizon said the rules represent "a new level of unwarranted government intervention.""....i lean towards agreeing somewhat with that... cant tell me what i can and cant do with what i payed for... *cough* Apple *cough*

[ibsteve2u]

05:12 PM on 04/08/2011

Of course the Republicans have launched a new initiative to gain the ability to censor the Internet

http://com­merce.sena­te.gov/pub­lic/index.­cfm?p=Pres­sReleases&­ContentRec­ord_id=f34­e9fb0-01d5­-4603-8026­-698992e89­13c&Conten­tType_id=7­7eb43da-aa­94-497d-a7­3f-5c951ff­72372&Grou­p_id=505cc­3fa-a767-4­0f4-8ac2-4­b8326b44e9­4

You didn't really think stifling NPR would be enough for them, did you? When you know they know the truth is their biggest enemy?

[Mister Grumpy]

01:22 PM on 04/08/2011

Forget it........ The Tea Baggers will sieze upon this opportunity to shut down the government when their attempts to control a womens uterus has failed.

[hungrypilot]

03:31 PM on 04/08/2011

Fav'd and Fan'd, you win sir.

[creed840]

12:59 PM on 04/08/2011

Well of course two Republicans and two large corporations would not agree to some thing that can help the consumer.

"they will have less incentive to invest in their high-speed wireless networks" ....if they choose that route and service becomes worse, they will lose customers. If another carrier that pays to piggy back on either wireless system offers a better monthly price, people will just go with them since they would be getting the same old service anyway. Since neither AT&T or Verizon Wireless had incentive to make improvements, it will be their loss. Why pay them more for the same old service?

[8thplane]

12:53 PM on 04/08/2011

AGAIN, this is all about "money', and "Power"! If the American people don't wake up, we are going to turn into "The United States of Verizon, AT&T, G.E., Exxon/Mobil". And the vehicle to get there is by turning it around and blaming the government, it look's like it's work'in. The AT&T deal should never be approved, but just wait, they'll make it work, just like they did with "citizen's united".

[Johnism96]

11:12 AM on 04/08/2011

awe... poor Verizon and AT&T. Now they will only make $95 billion in profits instead of $100 billion. How will they ever survive?

[UnknownSolider]

10:26 AM on 04/08/2011

so the industries big threat is to not upgrade their networks........ that will work until you start to see the backlash when people start switching to your no frills cheaper competitors

[J0E1]

10:06 AM on 04/08/2011

Sprint already piggybacks off Verizons towers.  This is why I tell people to switch to sprint.  The plans are cheaper and they get service everywhere verizon does plus.  It's all included in the price, free roaming for calls and data.

[Matt Raven]

12:28 PM on 04/08/2011

Almost. I nearly got burned by the thought that Sprint uses Verizon's towers, and has free everything.

They have free everything, but not everywhere! If have unlimited internet with Sprint, and access the internet using one of Verizon's towers, you are charged for it. Their 'Unlimited' access is only unlimited in their network areas, not everywhere.

Since I use my phone for internet, almost exclusively (3 gb of data a month, versus about 20 minutes of talk time), I would have been burned hard by switching. I was just about to do so, when I noticed the two magic words next to 'Unlimited'. They were 'In Network'.

There are no Sprint towers where I live. They are all Verizon. So while I could surf like a bandit, thinking it was all good, I would have ended up with a $20,000 bill after the first month!

Be careful about Sprint's Unlimited plan. Very very careful.

[J0E1]

05:03 PM on 04/08/2011

Up to a certain max is allowed.  In your case you would want to use Verizon, however, for most people that only occassionally go into roaming on Verizon towers with their sprint phones, they are allowed up to 300MB/mo before incuring any charges.  In fact, until last year, it used to be 2.5GB.
 
http://www.evdoinfo.com/content/view/3250/64/
 
"The trend of cutting data usage allowances down on customers is slowly becoming the industry norm. Sprint data services used to be completely unlimited until Sprint placed a 5GB cap on "in network" usage and a 2.5GB cap on "off network" roaming (i.e. connecting to towers that Sprint does not own but has a roaming agreement with). If you thought that the 2.5GB roaming limit was bad enough, Sprint has announced that they will be further reducing their data roaming limit to only 300MB. This new change results in an 88% percent decrease in roaming allowances for customers. If you exceed the new roaming policy, Sprint will charge you 25 cents per MB after 300MB (or you can choose to have your data service suspended until the following month).

I have never tried pushing it to 300MB but I have done some light data use while roaming on my EVO and have yet to incure any charges.

[Philippe Sharboneaux]

06:50 AM on 04/08/2011

Europe has been doing this for years! Your phone goes from network to network flawlessly, without loosing signal, no matter where you go. This will be good for America in the long run.

[Quanta]

03:45 PM on 04/10/2011

Hell, it will be good in the short run, for everyone, except ATT and Verizon but they can rot.