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Verizon/AT&T's Attack on Tethering Violating 700MHz Conditions?
The Devil Is in the Carefully-Worded Details

Back in 2007 when AT&T, Verizon and others lobbied for valuable 700MHz spectrum, you'll recall that Google pushed hard for the spectrum to contain open access provisions. At the time, you'll also recall that if you actually bothered to look at the conditions once crafted by the FCC, they were so packed with loopholes as to be rather useless.

Still, the conditions get brought up every few months as "proof" that Verizon has to run an open wireless network. Free Press is the latest, filing a complaint with the FCC today claiming that Verizon and AT&T's recent decision to apparently pressure Google to pull tethering applications from the Android Marketplace violates those rules. Says the consumer group:
quote:
As a condition of Verizon's license for the C Block of the upper 700 MHz block, Verizon and similar broadband providers using the spectrum are not permitted to “deny, limit, or restrict” the ability of their customers to use the applications or devices of their choosing. Recent reports reveal that Verizon has been doing just that by asking Google to disable tethering applications in the Android Market. Tethering applications, which allow users to make their phones into mobile hot-spots, implicate both the customers' ability to use both the applications and devices of their choice.
Free Press isn't wrong, but again the "Carterfone" conditions placed on that spectrum have loopholes Verizon can use to justify any tethering-blocking decisions. As Susan Crawford pointed out when the rules were created, all Verizon has to do is claim that tethering harms their network, and the FCC will nod dumbly and concede (all without Verizon having to provide any hard data). So while Verizon and AT&T are swimming upstream when it comes to trying to stop tethering, expecting regulators to do anything about it is probably a stretch. As we move to wireless pricing that involves one bucket of bytes for all users and devices in a family, the debate becomes irrelevant anyway.
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ITALIAN926
join:2003-08-16

ITALIAN926

Member

??

Does Verizon and AT&T sell a feature to "tether" their phone?
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: ??

T does yes. It's an extra like $15 a month to have the service. It also allows you to consume more bandwidth.
MyDogHsFleas
Premium Member
join:2007-08-15
Austin, TX

MyDogHsFleas

Premium Member

Re: ??

said by hottboiinnc4:

T does yes. It's an extra like $15 a month to have the service. It also allows you to consume more bandwidth.

Not exactly. It used to be an extra $10 to add tethering. Now there's a new $45/month plan for iPhone that allows you to use the iPhone as a WiFi hotspot and/or tether it to a PC, with a 4GB/month data allowance. Extra GBs are $10 each.

The $45/month plan is essentially free tethering/hotspot, but you have to pay for 4GB/month up front.

It's not a bad deal at all. I replaced three 3G data plans with this one plan and saved a bunch of money. I was paying $25/mo for iPad 2GB, $25/mo for iPhone 2GB, and $60/mo for a USB-attached PC 5GB data connect service. That was $110/month. Now I have the one $45/month plan and I just tether or WiFi connect my laptop and iPad to the iPhone 4 when I need connectivity on the road.

I've never come close to using the 4GB -- but if I do happen to go over, it's only $10/GB after that, which is very manageable.
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin

Member

Re: ??

said by MyDogHsFleas:

said by hottboiinnc4:

T does yes. It's an extra like $15 a month to have the service. It also allows you to consume more bandwidth.

Not exactly. It used to be an extra $10 to add tethering. Now there's a new $45/month plan for iPhone that allows you to use the iPhone as a WiFi hotspot and/or tether it to a PC, with a 4GB/month data allowance. Extra GBs are $10 each.

The $45/month plan is essentially free tethering/hotspot, but you have to pay for 4GB/month up front.

It's not a bad deal at all. I replaced three 3G data plans with this one plan and saved a bunch of money. I was paying $25/mo for iPad 2GB, $25/mo for iPhone 2GB, and $60/mo for a USB-attached PC 5GB data connect service. That was $110/month. Now I have the one $45/month plan and I just tether or WiFi connect my laptop and iPad to the iPhone 4 when I need connectivity on the road.

I've never come close to using the 4GB -- but if I do happen to go over, it's only $10/GB after that, which is very manageable.

That's a pretty bad deal and those are paltry data caps.
MyDogHsFleas
Premium Member
join:2007-08-15
Austin, TX

MyDogHsFleas

Premium Member

Re: ??

a) It's a pretty bad deal -- compared to what? Is there something pretty good out there? Or are you just not happy with where the market is right now? I'm not trying to start an argument, if you know of other offerings that compare favorably, I'm interested.

b) They are not caps, it's a tiered plan. Additional GBs are $10 each, which is the US market price point for cell data these days.
eieiomax
join:2010-11-23
Washington, DC

eieiomax to ITALIAN926

Member

to ITALIAN926
Yes, they do..

firephoto
Truth and reality matters
Premium Member
join:2003-03-18
Brewster, WA

firephoto to ITALIAN926

Premium Member

to ITALIAN926
said by ITALIAN926:

Does Verizon and AT&T sell a feature to "tether" their phone?

Yes so they can't say tethering itself harms their network but have to explain how certain bits are not as good as the value added bits they sell for a fee.

Oh, and this will work because dumb outnumbers common sense in Simpleton Kingdom.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

I Feel That Verizon is About Ready to Solve This Issue

When caps, meters, and/or "buckets of bits" come along this summer, I have a feeling that VZW will "open" its network to these alternative apps. After all, it will have very little to lose at that point.

Consumer costs are only going to rise due to this abuse of the intent of VZW's smartphone data plan. Get ready...

n2jtx
join:2001-01-13
Glen Head, NY

n2jtx

Member

Re: I Feel That Verizon is About Ready to Solve This Issue

said by openbox9:

When caps, meters, and/or "buckets of bits" come along this summer, I have a feeling that VZW will "open" its network to these alternative apps. After all, it will have very little to lose at that point.

Nothing to lose except all the money they get from the "because we can" fee. It was never about consumption but about getting the customers to bend over and pay extra for something they were already paying for.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: I Feel That Verizon is About Ready to Solve This Issue

Except that you missed the point where I suggested that consumer costs are about to increase for everyone. Don't get me wrong, VZW isn't going to eat the loss when tethering revenue dwindles. Revenue will be sustained/increased through use of caps/meters in conjunction with this new fangled "bucket of bits" that you can do whatever you'd like as long as you pay accordingly.

n2jtx
join:2001-01-13
Glen Head, NY

n2jtx

Member

Re: I Feel That Verizon is About Ready to Solve This Issue

said by openbox9:

Except that you missed the point where I suggested that consumer costs are about to increase for everyone. Don't get me wrong, VZW isn't going to eat the loss when tethering revenue dwindles. Revenue will be sustained/increased through use of caps/meters in conjunction with this new fangled "bucket of bits" that you can do whatever you'd like as long as you pay accordingly.

I understand your point. I am saying VZW can have the best of both worlds; high overages for data PLUS continuing to charge extra to use tethering. This way it will not be a revenue neutral change by dropping tether charges while implementing data caps. You will pay more for data plus continue to have to pay to tether devices.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: I Feel That Verizon is About Ready to Solve This Issue

I understand your point too. I'll just finish by suggesting that whatever the outcome of this, it won't be revenue neutral for VZW
MyDogHsFleas
Premium Member
join:2007-08-15
Austin, TX

MyDogHsFleas to openbox9

Premium Member

to openbox9
There were historically two price points for cell data: one for laptop connect, and one for phone connect. The laptop connect price point was always in the $50-60 range, and the phone connect was more like $20-30.

Tethering puts a strain on this set of price points because if consumers can "cheat" and get laptop connect at phone connect price points, obviously that reduces revenue. So that's why the carriers have been clamping down on tethering hacks.

I think this set of price points is starting to collapse as the carriers introduce smartphone-based hotspots at a bit more than the old phone connect price point, like in the $40-45 range. This will probably come down even more over time.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: I Feel That Verizon is About Ready to Solve This Issue

The "laptop connect" and "smartphone" data plan requirements are obviously blurring. The caps, meters, and strategically incorporated price increases that will be inherent in "buckets of bits" will ensure that the telcos don't take losses in revenue. The "it's my unlimited data, I'll do what I want with it whiners" will get what they want, open access....but they'll pay for it too.

r81984
Fair and Balanced
Premium Member
join:2001-11-14
Katy, TX

r81984 to openbox9

Premium Member

to openbox9
said by openbox9:

When caps, meters, and/or "buckets of bits" come along this summer, I have a feeling that VZW will "open" its network to these alternative apps. After all, it will have very little to lose at that point.

Consumer costs are only going to rise due to this abuse of the intent of VZW's smartphone data plan. Get ready...

Im going to sell my unused bits on ebay.

Edrick
I aspire to tell the story of a lifetime
Premium Member
join:2004-09-11
San Diego, CA

1 recommendation

Edrick

Premium Member

Corporate America

Hard at work for you the consumer
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Corporate America

Umm, no, publicly held corporations are hard at work for their owners. Too many people miss this simple fact. Publicly held companies don't conduct business for the benefit of consumers.
Kommie2 (banned)
join:2003-05-13
united state

Kommie2 (banned)

Member

Re: Corporate America

Corporate Publically held companies using PUBLIC Airwaves don't conduct business for the benefit of the owners of the airwaves(All of us).
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Corporate America

The spectrum is explicitly licensed to licensees for specified purposes. So long as the licensees uphold the terms of the license, all is ok. Maybe the public should cry to the licensor, which is what the Free Press is doing with this complaint.
Kommie2 (banned)
join:2003-05-13
united state

Kommie2 (banned)

Member

Re: Corporate America

Or maybe the Public should get its Airwaves back for free? Since they were leased out for free.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Corporate America

Leased out for free? Have you missed the spectrum auctions that have occurred over the last several years?
Kommie2 (banned)
join:2003-05-13
united state

Kommie2 (banned)

Member

Re: Corporate America

How much does the lease cost them after the inital down payment?
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Corporate America

I don't know. Ask the FCC. What does it matter?
Kommie2 (banned)
join:2003-05-13
united state

Kommie2 (banned)

Member

Re: Corporate America

Because it costs them 0/yr to use our Public Airwaves.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Corporate America

So, $10B for a 10-yr license is $0/yr?
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin

Member

Re: Corporate America

said by openbox9:

So, $10B for a 10-yr license is $0/yr?

It's a matter of semantic, but in Europe use it or lose it rules have greatly assisted competition in the wireless market.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Corporate America

I agree that licensees should have a employment plan when obtaining usage rights and if they don't use the spectrum, then it should be returned and made available to a new licensee.
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin to openbox9

Member

to openbox9
Cry to the licensor? The same one lobbied to the ends of the earth and back by the corporations they're supposed to "regulate"?

How do you maintain such willful blindness?
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Corporate America

I'm not blind. What else do you propose?
WernerSchutz
join:2009-08-04
Sugar Land, TX

WernerSchutz to openbox9

Member

to openbox9
said by openbox9:

Umm, no, publicly held corporations are hard at work for their owners. Too many people miss this simple fact. Publicly held companies don't conduct business for the benefit of consumers.

Yes, it should be the government that looks out for the consumers against these corrupt, evil, cheating bastards.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Corporate America

Ok. That's what this complaint is asking the FCC to do. Maybe the government nanny will come through for you.

••••
djcrazy
Premium Member
join:2009-08-05
Minneapolis, MN

1 recommendation

djcrazy to WernerSchutz

Premium Member

to WernerSchutz
said by WernerSchutz:

said by openbox9:

Umm, no, publicly held corporations are hard at work for their owners. Too many people miss this simple fact. Publicly held companies don't conduct business for the benefit of consumers.

Yes, it should be the government that looks out for the consumers against these corrupt, evil, cheating bastards.

Our government is full of corrupt, evil, cheating bastards who in many cases are just as bad or worse and usually in bed with the corporations you mention. There's the REAL truth!
gorehound
join:2009-06-19
Portland, ME

gorehound to Edrick

Member

to Edrick
slowly sinking to the level of a third world country.
little by little at a time

vpoko
Premium Member
join:2003-07-03
Boston, MA

vpoko

Premium Member

Re: Corporate America

Yeah, because when I think "third world country", I think "unreasonable wireless tethering policies". I don't think much of AT&T's policies, but all this drama-queening...
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin

Member

Re: Corporate America

said by vpoko:

Yeah, because when I think "third world country", I think "unreasonable wireless tethering policies". I don't think much of AT&T's policies, but all this drama-queening...

Have you seen the wireless service in India/China/freaking Somalia?
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

lte & 4g on 700mhz? don't think so..

they grabbed the "C" block to play keep away from Sprint, Cleearwire and LightSquared (aka the cable companies), not for their own use.

••••••
axiomatic
join:2006-08-23
Tomball, TX

axiomatic

Member

Revised Definition of Tethering

ORIGINAL:
Tethering

Tethering is the use of a mobile device such as a mobile phone to supply Internet access for another device which is otherwise unconnected, using the mobile device as a modem. This can be done through Bluetooth wireless technology or cables (such as USB). (en.wikipedia.org/wiki/Tethering)

Tethering - The connection of a personal computer to a mobile phone so as to obtain wireless Internet access from the PC. (en.wiktionary.org/wiki/tethering)

REVISED:
Tethering

Tethering is a misused word commonly invoked by wireless communication companies who go against the well defined network protocol standards that all networks should be able to be interconnected and impose a "pay wall" where one should not exist or was implied by inter-networking standards.
mmay149q
Premium Member
join:2009-03-05
Dallas, TX

mmay149q

Premium Member

Verizon pulled PDANet

The free (except for https sites) USB/Bluetooth tethering app off the market, you can't find it any more on there, and just a readme that says they are pulling it off the market due to this and if you want, go to their web-site on their PC to download it... It's pretty sad, especially when knowing that you can just download the EXE for it online, and the EXE will automatically install the APK on your phone...

Either way, good luck Verizon/AT&T, I have my HTC Thunderbolt fully rooted with PDAnet, and the WiFi tether app, and I just blew through 2GB's on UNLIMITED data today on my 4G connection to download a PC demo

On the flip side I will be interested to see what happens with this though, I'd like to see if Verizon tries to hide behind the whole "It's damaging our network" crap, I know AT&T will, but I'm not so sure if "The Nations Most Reliable" wireless network will really try and hide behind that.

Matt

••••••••••••
bcltoys
join:2008-07-21

bcltoys

Member

What need's to happen.

This wont happen but at the end of everybody's contract don't re-up and just get dumb phone's that's what i'm going to do f**k these wireless bastard's.I will keep my 3g usb dodongle for internet and just have a dumb phone.