Lobbying Expense 1998-2004: $22,260,000

Skype petitioned the Federal Communications Commission earlier this week to force U.S. mobile operators to loosen controls on what kinds of hardware and software can be connected to their networks.

In a document dated February 20, Skype asked the FCC to apply to the wireless industry what is known as the “Carterfone” rules, which would allow consumers to use devices and software of their choice on cell phone networks.

The “Carterfone” rules, which were enacted in 1968 during the old AT&T’s monopoly of the phone industry, allow consumers to hook any device up to the phone network, so long as it did not harm the network. Prior to these rules, AT&T provided all telephones and devices connected to the telephone network, and it routinely sued companies that sold unauthorized products that could attach to the network.

The cell phone industry’s trade organization says, “Skype’s self-interested filing contains glaring legal flaws and a complete disregard for the vast consumer benefits provided by the competitive marketplace.”

That’s about where I had to switch over to rubber boots. If Cellco’s [or Telco’s] are suddenly getting devout about a competitive marketplace, someone had better tell the politicians and lobbyists they employ — to get a new religion.



  1. Lauren the Ghoti says:

    Bulls-eye, Eideard. 🙂

    “Skype’s self-interested filing…”

    Pot, to Kettle: You’re black!
    Kettle: WTF??

    “…the vast consumer benefits provided by the competitive marketplace.”

    After cleaning up the mouthful of java I spewed all over my kbd, I thought, “Yes, how true. And Oceania has always been at war with Eastasia.”

  2. Billabong says:

    When they write the history of the cellphone business it will tell about the trillions of dollars stolen in the early years.

  3. TJGeezer says:

    Just another legislated monopoly posturing for a competitive marketplace while buying lawmakers right and left to defeat it.

    Chevron advertises that it cares about the environment, mobile phone and cable companies posture in favor of competition, up is down, black is white, same old same old.

  4. tallwookie says:

    thats an interesting plea there Skype, wtg! One network may do it, but unlikely all of them will, not this early in the game. Jebus, some companies remind me of parasites.

  5. bill says:

    Does each company have their own network and cell towers? If so, that seems like a waste. And no wonder they ‘lie cheat steal’ for any kind of advantage. Maybe some kind of free national wireless WiFi and the widespread use of that technology would level the playing field.. Am I missing anything here? It just seems like the present system just won’t work. I don’t want to have to pay for a redundant national network.

  6. TJGeezer says:

    Something like that has been tried in cities. I believe the usual suspects in congress have tried to make it illegal.

  7. SN says:

    “a complete disregard for the vast consumer benefits provided by the competitive marketplace.”

    Can someone explain how locking users into “what kinds of hardware and software can be connected to their networks” provides more competition or benefits to the consumer? I’m serious, that’s the most ludicrous statement!

  8. James Hill says:

    While a nice idea, the number of networks available to customers will make winning this suit impossible.

    This isn’t like Ma Bell… and with the number of free phones out there, it’s going to be hard to prove malice.

  9. SquidBanana says:

    Just think….if your cell software and architecture were more fully open, you could easily put encryption on your phone….and they wouldn’t’ want that, would they?
    They’re only for a truly open marketplace when it comes to the other guy’s product, not theirs.


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