Wireless & Spectrum Policy

You’d think that in 2009, when global networks are handling exabytes of data in a single day and OC192 fiber optic connections crisscross the planet, the FCC — the most important communications agency in the United States — would at least be able to use modern technology to stream its own public meetings.tlf image realplayer

Nope. The FCC is still streaming its webcasts with RealPlayer, a horrendous and arguably obsolete application that fell out of favor with techies years ago and has since been overtaken by superior streaming platforms like Adobe’s Flash Media Server.

Today’s big tech news item is the FCC’s “three-pronged probe” of the wireless industry, which was set to be announced today at this morning’s Open Commission Meeting.

Want to watch the FCC’s meeting and see what our “public servants” in Washington are up to? Good luck. The FCC’s streaming video server only supports 200 simultaneous connections.

In a nation of 270 million wireless users, why not offer, say, 1000 or even 10000 connections? Given the agency’s $339 million dollar budget that’s not too much to ask, is it?

It’s especially ironic that the FCC still struggles with streaming webcasts given that the FCC is launching an investigation of alleged “anti-competitive” practices in the wireless industry. Why isn’t the FCC investigating its own inability to accomplish relatively simple tasks, like stream live video or run a halfway decent website?

The FCC doesn’t just use RealPlayer for Open Commission Meetings. Even the FCC’s “Broadband Workshops” — which are supposedly going to guide the future of broadband deployment in America — are using the same tired streaming platform.

Of course, in the grand scheme of things, the platform the FCC uses for streaming video isn’t all that important. But it is a much-needed reminder that bureaucrats in Washington aren’t very good at keeping pace with modern technology. Unfortunately, many seem to have forgotten this fact.

ADDENDUM: Turns out the FCC does use a modern platform for streaming open commission meeting, Cisco Webex Webinar (accessible via www.broadband.gov) but only offers RealPlayer streams on the official FCC.gov website. Also, once meetings are finished, they are available online exclusively in the Real video format.

Reacting to Apple’s decision to not allow Google Voice for the iPhone, Wall Street Journal guest columnist Andy Kessler complains,

It wouldn’t be so bad if we were just overpaying for our mobile plans. Americans are used to that—see mail, milk and medicine. But it’s inexcusable that new, feature-rich and productive applications like Google Voice are being held back, just to prop up AT&T while we wait for it to transition away from its legacy of voice communications. How many productive apps beyond Google Voice are waiting in the wings?

So Kessler proposes a “national data plan.”

Before we get to that, Kessler complains that margins in AT&T’s cellphone unit are an “embarrassingly” high 25%.  He doesn’t point out that AT&T’s combined profit margin — taking into account all products and services — is only 9.66%.

AT&T is actually earning less now than it was legally entitled to earn when fully regulated — 9.66% versus 11.75%.

Don’t fall for the myth that AT&T killed Google Voice.

The truth is regulators are quietly expropriating wireless profits to hold prices for regulated services like plain old telephone service artificially low. Continue reading →

Seems like every week the tech rumor mills unveil some new smartphone that’s supposedly going to give the iPhone a run for its money. Over the past couple years, dozens of advanced handsets have been released with much fanfare — the LG Voyager, Palm Pre, Blackberry Storm, Samsung Omnia, to name a few — but time and time again, we end up with a device that can’t hold a candle to the iPhone’s amazing browser, massive app store, and sleek multi-touch interface.090730-moto_droid-01

But all this could change later this year. A number of handsets are due for release on several major networks over the next few months that run on Android, Google’s open source mobile operating system. Android is currently available on only a single device, the HTC G1. It’s a decent phone, but it lacks the polish of the iPhone and is only available with a contract from T-Mobile, which lags behind Sprint, AT&T, and Verizon in terms of 3G coverage.

I’m especially excited about the Android 2.0-based Motorola “Sholes,” a great-looking phone that’s supposedly due for release in November 2009 from Verizon. If rumors pan out, the Sholes should come with a slide-out keyboard, an extremely high-res display, a 5MP camera, and all-around solid specs. Via Android and Me:
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libertyby Adam Thierer & Berin Szoka — (Ver. 1.0 — Summer 2009)

We are attempting to articulate the core principles of cyber-libertarianism to provide the public and policymakers with a better understanding of this alternative vision for ordering the affairs of cyberspace. We invite comments and suggestions regarding how we should refine and build-out this outline. We hope this outline serves as the foundation of a book we eventually want to pen defending what we regard as “Real Internet Freedom.” [Note:  Here’s a printer-friendly version, which we also have embedded down below as a Scribd document.]

I. What is Cyber-Libertarianism?

Cyber-libertarianism refers to the belief that individuals—acting in whatever capacity they choose (as citizens, consumers, companies, or collectives)—should be at liberty to pursue their own tastes and interests online.

Generally speaking, the cyber-libertarian’s motto is “Live & Let Live” and “Hands Off the Internet!”  The cyber-libertarian aims to minimize the scope of state coercion in solving social and economic problems and looks instead to voluntary solutions and mutual consent-based arrangements.

Cyber-libertarians believe true “Internet freedom” is freedom from state action; not freedom for the State to reorder our affairs to supposedly make certain people or groups better off or to improve some amorphous “public interest”—an all-to convenient facade behind which unaccountable elites can impose their will on the rest of us.

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We’ve discussed extensively the controversy that recently erupted when Apple rejected Google Voice applications from the iPhone App Store. With the FCC sniffing around and tech pundits around the blogosphere weighing in on the merits of possible government intervention, it’s important to remember that jailbreaking an iPhone may be illegal under the Digital Millenium Copyright Act (DMCA). In other words, if you use a hack or workaround that enables you to run banned apps like Google Voice on your iPhone, you could be violating federal law.

The DMCA hasn’t stopped millions of iPhone owners from jailbreaking their phones and installing Cydia, an unofficial alternative to the official iPhone App Store. Cydia, which lets users download banned iPhone apps like Google Voice, has been installed on a whopping one in ten iPhones, according to its developers.

But jailbreaking programs and applications like Cydia are in risky legal territory. Developers who circumvent the iPhone’s copy protection systems are at risk of being sued by Apple, as are users who run jailbreaking software. Apple maintains that jailbreaking software is illegal under federal law, though it has not taken legal action against any unauthorized iPhone developers to date.

To clear up the muddy legal waters surrounding iPhone jailbreaking, Fred von Lohmann of the Electronic Frontier Foundation has asked the U.S. Copyright Office to grant a legal exemption to iPhone jailbreaking on the grounds that users should be able to install apps of their choice on the phone without risking civil or criminal sanctions. In a recent DeepLinks post, von Lohmann argues that the FCC should throw its weight behind EFF’s call for exempting jailbreaking from anti-circumvention rules.

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One reason AT&T may not like Google Voice is that it allows you to send and receive text messages for free. This has led many to argue that SMS are free to the carriers and they are overcharging. Congress is considering getting involved. Most recently there’s this from David Pogue in the NY Times:

The whole thing is especially galling since text messages are pure profit for the cell carriers. Text messaging itself was invented when a researcher found “free capacity on the system” in an underused secondary cellphone channel: http://bit.ly/QxtBt. They may cost you and the recipient 20 cents each, but they cost the carriers pretty much zip.

The price of a text message does sound ridiculous when you consider it on a per bit basis. The problem with thinking about it that way, though, is that it neglects the fact that AT&T had to build a network, and it has to maintain that network, before a text message can be “free.” AT&T charges customers so it can recoup its investment. It does so through voice and data service fees, but also through other fees, including for text messages. However it charges customers, it ultimately has to bring in enough to cover its costs or it goes out of business.

Now, if we passed a law today that said carriers could not charge for SMS because, after all, it’s free, we would see a an increase in the fees it charges for voice, data, and other services. The mix of prices for services we have right now is one the market will bear and consumers want, and there’s no reason to think that we could command a better one.

Better yet, if you want a “free” text messaging option, consider Boost Mobile, which offers just that. Of course, they have different voice prices and an older and slower network. In the end, they have to cover their costs, too.

Just when you thought the FCC’s investigation of the wireless industry couldn’t get any stranger, TechCrunch reports that the Commission has sent letters to AT&T, Apple, and Google inquiring about Apple’s recent decision to reject the Google Voice app from the iPhone App Store (as Berin discussed yesterday).google-voice-iphone-app-rejected-by-apple

It’s been over two years since the original iPhone was launched, but it seems the FCC still doesn’t get it: the iPhone is very clearly a closed platform — a prototypical walled garden — and Apple has the final say on what applications users can install. When you buy an iPhone, you’re not simply buying a piece of hardware, but actually a package deal that includes software, hardware, and a wireless contract. Is this anti-consumer? 26 million consumers don’t think so. The iPhone 3GS, the latest version of the phone, is selling so fast that Apple’s CFO says they can’t make enough to meet demand!

Of course, the iPhone model isn’t for everyone. I, for one, don’t own one because I’m an obsessive tinkerer and prefer a phone that’s as open as possible. But not everyone shares my preferences. As mentioned above, over 26 million iPhones have been sold since June 2007, so openness clearly isn’t make-or-break for a lot of consumers. Who knows, maybe some people actually trust Apple and like the comfort of knowing that every app they can get comes with a seal of approval from Cupertino.

The FCC’s letter to Apple demands an explanation for why Google Voice was rejected. If Apple’s explanation doesn’t satisfy the FCC’s criteria — which, by the way, are entirely unclear — then what? Will the FCC force Apple to accept Google Voice? Say what you will about Apple’s app store track record, but the prospect of federal regulators having the final word on which applications smartphone owners can install hardly seems pro-consumer. The FCC can’t even figure out how to run its own website!

In some ways, the iPhone has perhaps been too successful for its own good. It’s so popular that many consumers seem to no longer view it as just another product but instead as an item to which they are entitled. Thus, bureaucrats and Congresscritters in search of political points are making a big fuss over the fact that the iPhone isn’t everything to everyone. Why can’t it be wide open? Why isn’t in available on every carrier nationwide? Why is it so expensive to purchase without a service contract?

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The iPhone-obsessed blogosphere is atwitter about the Apple”s exclusion of the Google voice application from the iPhone app store. On Friday, the FCC sent letters of inquiry to the two companies as well as AT&T.

Whatever one thinks about whether Apple and AT&T should be able to operate their own networks as they see fit, this cat-fight should at least demonstrate the pointlessness of the investigation opened by the FTC in May as to whether Apple and Google are violating the antitrust laws by having two members of their boards of directors in common: Google CEO Eric Schmidt and former Genentech CEO Art Levinson. If the two companies were, in fact, trying to collude in an anti-competitive manner, they don’t seem to be doing a very good job of it!

Meanwhile, if you don’t like how Apple runs its app store, don’t get an iPhone! If you already have one, you could follow the lead of TechCrunch’s Michael Arrington and simply cancel your existing iPhone contract to get a more “open” phone—such as one powered by Google’s Android operating system.

Me, I’m just waiting for Google Voice to offer number portability so I can start using the service without having to change the number I’ve had for the last five years—and plan to take to my ashen grave (somewhere beyond low Earth orbit).

US Wireless Bandwidth per capita 2000-08Over the July 4 weekend, relatives and friends kept asking me: Which mobile phone should I buy? There are so many choices.

I told them I love my iPhone, but all kinds of new devices from BlackBerries and Samsungs to Palm’s new Pre make strong showings, and the less well-known HTC, one of the biggest innovators of the last couple years, is churning out cool phones across the price-point and capability spectrum. Several days before, on Wednesday, July 1, I had made a mid-afternoon stop at the local Apple store. It was packed. A short line formed at the entrance where a salesperson was taking names on a clipboard. After 15 minutes of browsing, it was my turn to talk to a salesman, and I asked: “Why is the store so crowded? Some special event?”

“Nope,” he answered. “This is pretty normal for a Wednesday afternoon, especially since the iPhone 3G S release.”

So, to set the scene: The retail stores of Apple Inc., a company not even in the mobile phone business two short years ago, are jammed with people craving iPhones and other networked computing devices. And competing choices from a dozen other major mobile device companies are proliferating and leapfrogging each other technologically so fast as to give consumers headaches. Continue reading →

Last summer, my PFF colleague Barbara Esbin and I explained that, while many consumers dislike not being able to get popular smartphones like the iPhone on the wireless network of their choice, such exclusive deals actually benefit consumers. Barbara summarizes her testimony (PDF) as follows:

the dynamic created by the exclusive arrangement between Apple and AT&T that produced the iPhone allowed the two companies to bridge the gap between the technologies of today and the disruptive innovations of tomorrow. Moreover, it is undeniable that the breakthrough success of the iPhone has spurred a wave of competitors. If every wireless carrier had been able to sell the iPhone when it was initially released, I noted, it seems unlikely there would have been as much carrier support for developing competing products like the Google G1, RIM Blackberry Storm, Samsung Instinct or Palm Pre.