As the wireless Internet evolution develops, government should resist the temptation to bury the industry in regulations and instead, let competition for customers shape the market.
In France, customer ownership issues are under scrutiny. A Paris trade court recently ruled that France Telecom must stop selling WAP phones that lock the devices to its wireless Internet services, according to a Wall Street Journal story. The issue also is likely to come under the microscope in other European countries.
France Telecom says it locked in customers only on handsets that were subsidized by the carrier, and consumers can call the carrier to request a special code that will let them dial another wireless ISP’s gateway. Its opponents claim the carrier used its dominant position in the telecom market to gain in the ISP market and that 80 percent of its phones are subsidized.
But in the United States-where competition claims to be king-a wireless carrier linking customers to its own portal or portals where it has a relationship with the ISP seems to be a clear way of differentiating service.
If I want to open an ice-cream shop that sells only vanilla and chocolate ice cream, shouldn’t I be allowed? Customers who want 32 flavors can go to that other place. My customers will soon learn there are short lines at my ice-cream shop because my customers already know what they want-chocolate or vanilla. They don’t spend as much time dawdling. Of course, I run the risk of losing a lot of potential business, but it’s a risk I’m willing to take.
Governments should not decide beforehand that carriers are pipes. Instead, the competition between Internet service providers, content providers and wireless carriers will benefit the consumer as each segment of the wireless Internet industry tries to own that customer. If a carrier wants to limit how its customers access the Internet, consumers who want open access to everything are free to choose another carrier, especially in a market with six or more wireless providers. (Certainly one carrier would decide to give its customers easy access to any portal as a market differentiator.)
Limited access to the Internet via wireless could be a pretty strong selling point to parents who do not want to pay airtime charges so little Johnny can check baseball scores on his wireless phone while he is supposed to be paying attention to his algebra teacher.
See, competition is good. My cable TV provider has just made a deal to carry a hard-core porn channel. If I had another choice in cable TV providers, I’d be calling that company today …
