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  <id>tag:,2009:/1/tag:72.47.210.69,2007://1.3877-</id>
  <updated>2009-10-30T14:52:05Z</updated>
  <title>Comments for Internet Companies Push For Mobile Phone Carriers to Open Up</title>
  
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  <entry>
    <id>tag:72.47.210.69,2007://1.3877</id>
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    <link rel="service.edit" type="application/atom+xml" href="http://www.readwriteweb.com/cgi-bin/mt/mt-atom.cgi/weblog/blog_id=1/entry_id=3877" title="Internet Companies Push For Mobile Phone Carriers to Open Up" />
    <published>2007-06-06T19:57:25Z</published>
    <updated>2007-12-16T23:11:37Z</updated>
    <title>Internet Companies Push For Mobile Phone Carriers to Open Up</title>
    <summary> In the US mobile phone carriers run closed networks: my Samsung phone will only run on the Verizon network, and if I switch to another carrier, the applications I bought over Verizon&apos;s service won&apos;t come with me. This set up has big Internet companies up in arms. Last March, for example, Google CEO Eric...</summary>
    <author>
      <name>Josh Catone</name>
      <uri>http://www.readwriteweb.com/</uri>
    </author>
    
    <category term="News" />
    
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      <![CDATA[<p><img border="0" src="http://www.readwriteweb.com/images/mobile-phones-us.jpg" width="513" height="198" /></p>

<p>In the US mobile phone carriers run closed networks: my Samsung phone will only run on the Verizon network, and if I switch to another carrier, the applications I bought over Verizon's service won't come with me.  This set up has big Internet companies up in arms.  Last March, for example, Google CEO Eric Schmidt accused the carriers of creating "walled gardens" that kept Internet companies out.  The carriers, however, say that they spend billions of dollars on their networks and shouldn't be forced to open them up.  In March 2005, then-AT&T CEO Edward Whitacre (though it was SBC at the time) <a href="http://www.businessweek.com/magazine/content/05_45/b3958089.htm">told Businessweek</a> that the big telecom companies spent billions laying fiber optic line and it was unfair for Internet companies to have free access. "They use my lines for free -- and that's bull. For a Google or a Yahoo! or a Vonage or anybody to expect to use these pipes for free is nuts!" he said.</p>]]>
      <![CDATA[<p>It wasn't always this way, however.  In 2001 SBC signed a deal that paid Yahoo! in exchange for the right to a co-branded portal and access to other Yahoo! apps.  Now, <a href="http://www.siliconvalley.com/ci_6072098?nclick_check=1">reports Mercury News</a>, SBC is part of AT&T, the biggest phone carrier in the US, and is not so desperate.  They plan to use their position of dominance over the mobile web to control it in a way the failed to do with the traditional web.</p>

<blockquote><p>"As mobile use of the Internet takes off, AT&T and other wireless carriers are poised to exert tight control over the mobile Web, putting search giants like Yahoo in an uncharacteristically weak negotiating position. That's because unlike the regular phone network, the wireless networks are closed. Indeed, neither Google's nor Yahoo's showcase applications for mobile phones are available to Verizon subscribers, the second-biggest wireless company in the United States."</p></blockquote>

<p>But not everyone is taking it lying down.  Skype, a VoIP company that has drawn the ire of big telecom companies in the past who accuse it of using their infrastructure to undercut their prices, has <a href="http://www.usatoday.com/tech/wireless/phones/2007-06-05-skype-fcc_N.htm?csp=34">filed a complaint</a> with the US Federal Communications Commission accusing the phone companies of violating laws by creating closed networks.</p>

<p>"Carriers are using their considerable influence over handset design and usage to maintain control over and limit subscribers' right to run software communications applications of their choosing," said Skype in their FCC filing.</p>

<p><img border="0" src="http://www.readwriteweb.com/images/razr-cingular.jpg" width="300" height="275" /><br /><i>In the US, the phone above won't work on every network.</i></p>

<p>According to Skype, wireless carriers should be forced to follow a 1968 FCC rule, which stipulates that any device must be able to connect to any US phone carrier.  Skype's ulterior motive, of course, is for its customers to be able to purchase an unlimited data plan  on any wireless network and then make calls over the Skype software.  There is a technical problem with Skype's vision, however.</p>

<p>In most non-US markets carriers use the GSM standard, but in America carriers use a variety of technical standards.  That means that some phones simply can't function on multiple networks with the current set up.  In order for Skype's proposal to work, mobile phone carriers would either need to spend billions updating their networks to conform to a single standard, or all handsets would need to support multiple standards.</p>

<p>Still, as a frustrated US mobile customer myself, it would be great if carriers were forced to tear down their walled gardens and the mobile web could become as open as the traditional Internet.  Some analysts predict that is what will happen eventually anyway. "If you think about AOL in 1995, they were in a similar position of power," says Charles Golvin from Forrester Research.  "That broke down because consumers wanted access to the open Internet.  I would argue that the same will happen in mobile."</p>

<p>And of course, if Skype gets its way, it will mean an iPhone that works on any network.</p>]]>
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  <entry>
    <id>tag:72.47.210.69,2007://1.3877-comment:33302</id>
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    <title>Comment from Jamie on 2007-06-06</title>
    <author>
        <name>Jamie</name>
        <uri></uri>
    </author>
    <content type="html" xml:lang="en" xml:base="">
        <![CDATA[<p>Its a bit rich for Skype to be complaining about anything being closed and locked down.</p>]]>
    </content>
    <published>2007-06-06T22:05:38Z</published>
  </entry>

  <entry>
    <id>tag:72.47.210.69,2007://1.3877-comment:33303</id>
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    <title>Comment from teki321 on 2007-06-06</title>
    <author>
        <name>teki321</name>
        <uri></uri>
    </author>
    <content type="html" xml:lang="en" xml:base="">
        <![CDATA[<p>> Its a bit rich for Skype to be complaining about <br />
> anything being closed and locked down. </p>

<p>Why?</p>]]>
    </content>
    <published>2007-06-07T01:01:07Z</published>
  </entry>

  <entry>
    <id>tag:72.47.210.69,2007://1.3877-comment:33304</id>
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    <title>Comment from Powder on 2007-06-06</title>
    <author>
        <name>Powder</name>
        <uri></uri>
    </author>
    <content type="html" xml:lang="en" xml:base="">
        <![CDATA[<p>In the 1990s the original local and long distance phone companies tried to keep other companies off their "pipes" and we all know they lost that fight. Something tells me that the FCC will gradually open up access.</p>]]>
    </content>
    <published>2007-06-07T05:39:38Z</published>
  </entry>

  <entry>
    <id>tag:72.47.210.69,2007://1.3877-comment:33305</id>
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    <title>Comment from Timoty on 2007-06-07</title>
    <author>
        <name>Timoty</name>
        <uri>http://cheaptravelling.blogspot.com/</uri>
    </author>
    <content type="html" xml:lang="en" xml:base="http://cheaptravelling.blogspot.com/">
        <![CDATA[<p>In Russia we haven`t problems with mobiles.. like this.</p>]]>
    </content>
    <published>2007-06-07T11:55:57Z</published>
  </entry>

  <entry>
    <id>tag:72.47.210.69,2007://1.3877-comment:33306</id>
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    <title>Comment from Randall Gordon on 2007-06-07</title>
    <author>
        <name>Randall Gordon</name>
        <uri></uri>
    </author>
    <content type="html" xml:lang="en" xml:base="">
        <![CDATA[<p>"...it will mean an iPhone that works on any network."</p>

<p>Unfortunately that leaves just a handful of providers here in the US -- Cingular, T-Mobile and the few smaller GSM carriers that are spread around.  Plus, from what I understand Cingular has done well to ensure that the iPhone is relying on a good bit of carrier-side software that would cripple some of the iPhone's messaging features if it were used on, say, T-Mobile.  Not to mention the CDMA carriers are nixed straight away, so no iPhone for quite some time for Sprint, Verizon or Alltel users.</p>

<p>Even if Carterfone-esque legislation does get pushed through by Skype and others, there are so many technical hurdles that the carriers have managed to build into their networks that it would be a smaller victory than everyone is hoping for.  Just the issue which was mentioned, having two major radio standards, GSM and CDMA, is bad enough.  Then among the CDMA carriers you've got the issues of the application subsystems being entirely different with some using BREW and some using  J2ME (Java).  What is more important is ensuring that the infrastructures, and more-so the devices, of the future are open.  An impractical amount of work would be required to make our current mobile devices truly interoperable.  And due to the lead time on engineering in the mobile industry, it will be a couple years before we see a decent amount of change.</p>

<p>But there is hope in that there are open projects in the works.  Mostly a handful of hackers who have the technical knowledge to make their own phones.  But, FIC has their Neo1973 which has been claimed by many to be a viable, unlocked iPhone alternative.  I know my eyes are set on snagging one.</p>]]>
    </content>
    <published>2007-06-07T17:00:20Z</published>
  </entry>

  <entry>
    <id>tag:72.47.210.69,2007://1.3877-comment:33307</id>
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    <title>Comment from Fred Brunel on 2007-06-07</title>
    <author>
        <name>Fred Brunel</name>
        <uri>http://fredbrunel.com/</uri>
    </author>
    <content type="html" xml:lang="en" xml:base="http://fredbrunel.com/">
        <![CDATA[<p>I don't think wireless carriers will open their network to the traditional web. They are so afraid of becoming a "just another ISP" that they won't do it. </p>

<p>Actually they are stuck in such a position that they would never be able to earn so much money than today (with SMS and voice). Moreover, GSM/3G networks are not so good in terms of performance and are the last one not being IP driven. </p>

<p>I would tend to think that the traditional web will go mobile through alternative networks such as WiMAX. Some ISP (e.g.: Free Telecom in France) are very close to propose such offer.</p>

<p>Clearwire, a broadband company in US just invested hundred of millions dollars in WiMAX. They claim they would be able to reach 223 million of people with WiMAX.</p>

<p><a href="http://arstechnica.com/news.ars/post/20070604-after-deal-with-att-clearwire-can-reach-223-million-people-with-wimax.html" rel="nofollow"><a href="http://arstechnica.com/news.ars/post/20070604-after-deal-with-att-clearwire-can-reach-223-million-people-with-wimax.html" rel="nofollow">http://arstechnica.com/news.ars/post/20070604-after-deal-with-att-clearwire-can-reach-223-million-people-with-wimax.html</a></a></p>]]>
    </content>
    <published>2007-06-07T17:16:33Z</published>
  </entry>

  <entry>
    <id>tag:72.47.210.69,2007://1.3877-comment:33308</id>
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    <title>Comment from Kevin Shaum on 2007-06-08</title>
    <author>
        <name>Kevin Shaum</name>
        <uri></uri>
    </author>
    <content type="html" xml:lang="en" xml:base="">
        <![CDATA[<p>I disagree that all carriers would have to switch to a single standard, or that all handsets would have to be multi-standard -- though that would certainly simplify the logistics. It simply means that multiple standards would co-exist, a la PC and Mac. But instead of buying your GSM phone from Cingular, you would buy it from Motorola or Samsung (or Apple), and enter a code to enable it on the Cingular network.</p>

<p>That said, I don't think the existing mobile networks will open voluntarily, and they will move heaven and earth to prevent it from happening through regulation. Instead, I think they will be subverted from below, through WiMax or its eventual successors.</p>]]>
    </content>
    <published>2007-06-08T16:20:43Z</published>
  </entry>

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