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Could wireless net neutrality be a boon for the enterprise?


This week FCC Chairman Julius Genachowski issued a call for an "open Internet," and wireless networks are not immune. There's going to be a big fight.

The chairman has proposed to make it a formal rule that broadband operators--both wired and wireless--can't discriminate against certain types of traffic by degrading service or blocking certain applications, like VoIP. He has a majority already as the FCC's two Democratic commissioners--Michael Copps and Mignon L. Clyburn--say they support the measure.

Big providers like Verizon and AT&T don't have a problem with net neutrality being applied on wired networks but they do on the wireless side because spectrum is a finite resource. AT&T has already acknowledged that it is struggling to keep up with the data traffic on its network, thanks in most part to the popularity of the iPhone, which is the reason why it delayed offering MMS on the device and has indefinitely delayed tethering. In May, AT&T defended a network policy that prompted content placeshifting technology developer Sling Media to remove 3G access from the iPhone edition of its SlingPlayer Mobile video application, with the operator arguing the app would consume too much network capacity.

Most of the major operators have restrictions on what customers can use their broadband connections for, but not all heavily enforce them. AT&T stipulates that data sessions may be conducted only for Internet browsing, email and Intranet access. The company noted that there are "certain uses that cause extreme network capacity issues and interference with the network and are therefore prohibited." Examples of these prohibited uses include: Server devices or host computer applications, camera posts or broadcasts, peer-to-peer file sharing and devices that maintain continuous active Internet connections when a computer's connection would otherwise be idle or any "keep alive" functions.

Still, it's unclear exactly what an "open" wireless network would look like. The Cellular Telecommunications & Internet Association (CTIA) promises stifled innovation and crippled networks if such regulations pass.

Operators do have a valid argument that their networks are bound by spectral limitations and the FCC should take that into account. But I believe operators have already planned out how they can compete in an era bound by open access. The moment President Obama was elected to office, they were planning for it.

In light of the move toward openness, analysts have been talking a lot about how network providers can add value rather than being a dumb pipe. Most agree that operators should leverage the unique attributes of their networks, creating a personal broadband experience of sorts. Location is a big one. Geobrowsing, for instance, would bring points of interest to a user's location where a virtual map comes together to allow users to find what they're looking for.

Operators can become a smart managed pipe. Some applications will require the most optimal network performance available, requiring content providers to make deals with network operators. For instance, an operator could provide more bandwidth for a short period of time if a content provider wants end users to view a video in real time or provide better Quality of Service for mission-critical enterprise applications.

Open access will mean operators have to find new ways to participate in the revenue stream. To me, there's no doubt they will be courting the lucrative mobile enterprise space. - Lynnette

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How does this plan affect the providers who paid millions for spectrum?

Yes, that's a problem. For the 700 MHz auction, one tranche was deemed open access while other licenses didn't have that stipulation. AT&T bought much of the 700 MHz spectrum that didn't have open access provisions attached and is claiming "bait and switch." We'll have to see how this plays out. --Lynnette

Now lets look into the future…do you really think that my carrier will be happy with me subscribing to a data only plan and initiating calls via SIP provider (VoIP), that is say in Singapore? I doubt it the carriers are very scared in releasing LTE (4G) and will tread very carful not to rock the Voice/SMS goldmines. Most data on mobile networks don’t forget is handed off at the tower and backhauled over regular IP networks.

In many parts of the world incoming calls are free and the carriers decide how the handset is setup from the manufacturer e.g. in Australia one major carrier will order say 100,000 units of a Nokia handset and have their deck only accessible and off-deck access only achievable if you know how to configure the phone. Even more disturbing is that the same carrier sets the handset up to only ring 3 times, why? Because there is so much revenue made by people accessing their voice mail and then the comfort in knowing that the user will return the call in most cases on the carriers tariff.

Congratulations FCC

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