A public-interest group asked the Federal Communications Commission to impose open-access conditions on the Verizon Wireless-Alltel Communications L.L.C. and Sprint Nextel Corp.-Clearwire Corp. mergers.
Free Press said that while Verizon Wireless and Sprint Nextel have moved to loosen their control of networks, both companies still reserve the right to block third-party devices and applications.
FCC Chairman Kevin Martin is pushing to approve both wireless deals at a scheduled Nov. 4 meeting. Both mergers are also under review by the Department of Justice, with Verizon Wireless already agreeing to divest assets in 100 markets and to honor roaming agreements between Alltel and other wireless providers.
“Merger conditions provide an essential consumer protection in an increasingly consolidated wireless industry. Openness should not be a privilege that a lucky few customers enjoy on the wireless Internet – it should be backed up with guarantees of user choice for everyone,” said Ben Scott, policy director of Free Press. “We commend wireless carriers for supporting open-network principles. But we’re concerned that these companies still reserve the right to block applications and devices in the fine print. As wireless competition dwindles, the FCC must adopt policies that put more choices and greater innovation in the hands of mobile users. Open-network conditions ensure that wireless companies walk the walk, not just talk the talk.”
Verizon Wireless paid $4.7 billion for a nationwide collection of regional open-access licenses at the 700 MHz auction earlier this year, and the No. 2 carrier is pursuing an open-development initiative to allow third-party devices and applications throughout its national network.
Meantime, Sprint Nextel said it is using the open Internet model for WiMAX service recently launched in Baltimore and planned for nationwide deployment.
Public-interest and consumer groups have signaled they plan to ratchet up their criticism of the proposed transactions in coming days.
Group asks for open-access conditions on mergers
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