FCC Reclassifies Wireless Broadband as an Information Service

The FCC voted Thurs. to reclassify wireless broadband Internet access as an information service, but declined to raise specific questions about whether Carterfone rules apply to wireless networks, despite objections from Comr. Copps. Democratic members of the Commission had pushed for questions in an NPRM, though those efforts fell flat, at least temporarily.

Chmn. Martin told reporters after the meeting interested parties can file comments on whether Carterfone should apply to wireless under a notice of inquiry on net neutrality also approved by the FCC Thurs. (See separate story in this issue.) But Martin said the NOI doesn’t raise specific questions on Carterfone and wireless.

“The Commission has the petition in front of it that was recently filed by Skype,” Martin said: “We're just beginning that process.” He said as part of the NOI, “people will be able to file comments on this and other issues that they think are related to net neutrality.” He said the NOI “does ask about the general principles and how they're being implemented.”

“I… believe we should include questions about how and whether the classification of CMRS services as Title II services incorporates the principle of the seminal 1968 Carterfone decision,” Copps said: “I believe that our answers to these questions -- or our failure to answer them - - will have a direct impact on the pace of technological innovation in the years ahead and on the extent to which consumers can take full advantage of that innovation.”

Copps also questioned whether under the reclassification subscribers will lose protection of their customer proprietary network information. Copps suggested a consumer who uses the CMRS features of a dual-mode device “can be secure in the knowledge that our Title II CPNI rules require the carrier to protect his or her call and location information.” But if a caller uses the same device “to send an e-mail via Wi-Fi, to call up a map of his or her location via a browser, or even to place a VoIP call to another Internet user” the same protections may not apply, he said.

Comr. Adelstein also concurred. “The goal of this declaratory ruling is ostensibly to promote wireless broadband deployment,” he said: “It is hard to fathom how it is likely to make much difference in the near term considering that no party bothered to ask us to formally consider it. It is hard to see how clarifying the regulatory classification will promote deployment when nobody was saying it was ever an impediment.”

But Comrs. Martin, Tate and McDowell voted for the order without similar reservations. “All market players deserve the certainty and regulatory even-handedness necessary to spark investment, speed competition, empower consumers, and make America a stronger player in the global economy,” McDowell said.

In Feb., Skype asked the FCC to impose Carterfone requirements on wireless carriers, giving customers the right to attach any device of their choice to a wireless network (CD Feb 22 p6). The FCC’s seminal 1968 decision said subscribers should be able to attach a Carterfone, a 2-way mobile radio system, or other devices to the PSTN, as long as the devices don’t have the capacity to damage the network.

Christopher Libertelli, senior dir. at Skype, said the Commission should look closely at applying Carterfone to wireless Internet access. “Our users don’t particularly care where Carterfone comes from -- whether its Title I or Title II -- so long as they have the maximum amount of choices for their communications products,” he said.

Sen. Sununu (R-N.H.) said he would study the order when it’s released but the Commission appears to be on the right track. “Simply put, wireless broadband services should not be smothered by needless regulatory burdens that certain classifications can bring,” he said: “These services should be treated as the FCC treats cable and wireless broadband offerings. Chairman Martin has done solid work here and should be congratulated for reaching the right outcome.”

“It is critical that the FCC ensure that regulations are technology neutral and this decision is a welcome step in that direction,” CTIA said in a statement: “Today wireless is a legitimate competitor in the broadband marketplace offering capabilities and speeds comparable to cable and DSL service and today’s order recognizes this important fact. The Wireless Communications Assn. said: “The Commission has already provided such relief for cable modem and DSL services, and it is both appropriate and necessary that wireless broadband providers be afforded similar deregulatory treatment.”