Free Press urges FCC to place conditions on Verizon-Alltel and Sprint-Clearwire mergers

FOR IMMEDIATE RELEASE

Date: October 21, 2008
Contact: Jen Howard, Free Press, (202) 265-1490 x22 or (703) 517-6273

WASHINGTON -- With the Federal Communications Commission poised for a Nov. 4 vote on the Verizon Wireless-Alltel merger and the Sprint Nextel-Clearwire deal, Free Press is calling for conditions that require both wireless networks to be open to all devices and applications. The proposed conditions are similar to open-network rules attached to a large chunk of the 700 MHz wireless spectrum, auctioned to Verizon Wireless for $4.7 billion earlier this year.

Since the FCC's 700 MHz auction, many wireless carriers -- including Verizon and Sprint -- have made public moves toward openness. Verizon announced the "Open Development Initiative" to "allow customers to use any device and any application" on the company's wireless network. And Sprint recently launched its new WiMAX service, asserting that its "open Internet business model transcends other carriers' wireless walled gardens that restrict services, choice and innovation."

But despite these public promises, both companies still reserve the right in their terms of service to block devices and applications on their networks. In FCC filings, Free Press and members of the Public Interest Spectrum Coalition argue that merger conditions will ensure that wireless companies actually deliver the open networks they publicize.

Ben Scott, policy director of Free Press, issued the following statement:

"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.

"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."

PISC's Verizon-Alltel filing: http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6520037839

PISC's Sprint-Clearwire filing: http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6520169303

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