Special no-blocking rules for Verizon's spectrum will apply to all carriers.
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 throttlingextend 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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