Power, Freedom and Money

Skype, Apple, and the Carriers

April 2009 – Skype JournalPhil Wolff, @evanwolf

1

It sounds innocent enough.

Apple says iPhone is a computer that looks like a phone.

Carrier says: no Skype?

Apple says: we'll write a little no-VoIP clause

in the developer contract, don't worry, AT&T.

Time passes

iPhone becomes a game changing success

More time passes

Skype launches their iPhone app

Millions of people squeal with glee

Millions of people squeal with glee and download

Skype tops iTunes app store charts worldwide

And then they try to Skype

And then they try to Skype while walking around or driving

And can't.

Not allowed.

Skype says:

Look at Apple, they forced us.

Apple says:

Look at AT&T, they forced us.

AT&T says:

It's our service. take it or leave it.

2

Citizens ask:

What is the difference between

a PC and

a mobile phone?

Why is it evil for ISPs like AT&T and Deutsche Telekom

to control my PC experience?

ISPs for PCs shall not control

What I see

ISPs for PCs shall not control

What I say

ISPs for PCs shall not control

What software I use

ISPs for PCs shall not control

What gear I use

Because that would be wrong

Why can they say "no" when I do the same thing on my mobile?

Even on a mobile computer?

Why does my freedom end there?

And what can I do about it?

3

Skype picks fights

David v. Goliath et al fights

2007

Skype petitions the US Federal Communications

The Carterfone decision let you plug any phone

into the wall of your home (just don’t harm the phone system)

“Mobile Carterfone:” FCC would force mobile carriers

to permit consumers to use any device on a network

Skype says: “Mobile Carterfone” will improve:

customer choice, competition,

innovation

Carriers fight Skype’s six page letter with a multimillion dollar lobbying,

astroturfing, and PR campaign

Outcome:

The FCC doesn’t act.

2008

The big US mobile operators say they are open

and getting more open

Mobile operators swear allegiance to all things open,

so the FCC and the American people

should be happy

Skype writes the FCC, details their lies and distortions

Outcome:

Egg on carrier facesLots of industry pressNo mainstream notice

Carriers still behave badly

2009

Skype for iPhone launches

Skype points out AT&T blocks mobile Skype calling

AT&T forced to justify anticompetitive, anti-consumer,

anti-Skype practices

2006, 2007, 2008 Skype argues US government

must act.

Force meaningful consumer choice

Protect civil liberties

Lower barriers to competition

Open access to wireless networks

Let Skypers Skype

Outcome:

We'll see

4

Is Skype picking good fights to fight?

How loud will people shout

for the freedom to Skype away from Wi-Fi?

Will consumer pull sway carriers

to permit Skype?

Or will citizen activismregulate open access?

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