Verizon Blinks
In Telecom Patchboard on February 18, 2010
As we all know, Verizon went public on Tuesday with its agreement to allow Skype’s VoIP application to run on its network. There are still a few gotchas for Verizon subscribers who want the service, but in the world of telecom this is momentous. Faced with the FCC’s proposed rules for net neutrality and a new fifth principle of non-discrimination, Verizon (along with AT&T) has relented.
I’m happy that Skype user can make unlimited domestic VoIP calls to each other over Verizon’s network . I think it’s fair to say we can thank the FCC for taking a more vigorous approach to enforcing net neutrality on wireless networks. Back in October, a draft of proposed rulemaking included language for a new Internet principle of non-discrimination:
manner.
The devil lurks in the details. While broadband access providers can’t charge content or application providers for specialized or prioritized access (that’s the FCC’s definition of non-discrimination), they are given significant leeway in managing their networks. In fact, the proposal includes a category of “managed or specialized services” that can encompass VoIP and video, but for which discriminatory pricing rules do apply.
This is to say, Verizon or AT&T wouldn’t be allowed to charge a content provider extra for improved access to a generic web-page, but access providers could effectively create a new service class for a video site by defining it as a managed service.
N.B: Nothing in the proposed rule making prevents a broadband access provider from prioritizing IP packets as long it’s “reasonable network management”—for example, assigning a video packet lower priority to unblock congestion.
Again, I’m delighted about Verizon’s new openness on wireless VoIP. Warning: much can change between now and when the final rules are decided on by the FCC, and new regulations will undoubtedly be challenged in the courts.
To get a flavor of the contentious possibilities, take a peek at the FCC comments from the CTIA, the wireless industry’s principle trade group. A single sentence should give you the flavor of the opposition:
