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FCC Charged To Take Action Against MetroPCS

Jacob Chung |
January 13, 2011 | 9:36 p.m. PST

Staff Reporter

MetroPCS under scrutiny from net neutrality supporters.
MetroPCS under scrutiny from net neutrality supporters.

It’s now just three weeks since the Federal Communication Commission set in motion the rules of net neutrality, and it looks like the commission will have to face its first major challenge in dealing with one up-and-coming mobile wireless provider, MetroPCS. 

MetroPCS, despite its relatively late entry into the wireless market, has found some success by introducing competitive packages of wireless voice and data services at affordable costs. The company’s popular slogan touting, “Not-$40ish. $40” for unlimited talk, text, and web (including taxes and regulatory fees) has caught the attention of many price conscious shoppers. However, with its new 4G plans, the company’s has been receiving some unwanted attention. 

According to supporters of net neutrality like Free Press, Center for Media Justice, and Presente.org the company’s new 4G package goes against the spirit of a free and unbiased Internet. In a letter addressed to the commission’s chairman, Julius Genachowski, the group said, “MetroPCS has announced recent changes to its mobile broadband service plans that offer a glimpse of the future of the mobile Internet, one in which carriers, not users, decide what content, applications, and services are important and will be delivered.” 

More specifically, the contention lies with the companies lower tiered 4G plans which offers access to the web with the exception of certain data intensive services like Netflix or Skype. The excluded services, however, will be accessible with the higher tiered service plans starting at $50. 

This, net neutrality supporters allege, is not in accord with the rules set by the commission. In the 194-page document the commission released last month, key points included polices of transparency in service methods, no blocking of lawful content being transferred, and no unreasonable discrimination of lawful content traffic on the web. 

The discussion now lies with whether the services excluded with MetroPCS’s new service qualifies as “unreasonable discrimination” of lawful content. 

Despite criticism, the company maintains that there is no foul play. Roger Linquist, the Chief Executive Officer of MetroPCS said in an emailed response to CNET.com, “The recent complaints about our new, pro consumer, pro competitive 4G LTE rate plans are erroneous. We continue to offer consumers a full service, unlimited data plan. We increased consumer choice by consumer choice by adding two new rate plans that are less expensive and enable consumers to select the service and content they want at a price point they can afford. These new rate plans comply with the FCC’s new rules on mobile open Internet.”   

Although the Federal Communication Commission has not yet formally addressed this issue, this puts the commission in a difficult position. Depending on the commission’s move on the matter, precedence will be set on how “unreasonable discrimination” will be interpreted in the future of mobile wireless service.

Reach reporter Jacob Chung here.



 

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