AT&T and Verizon, the country’s two largest wireless carriers, each made announcements yesterday that could help consumers.
AT&T said it would no longer prevent iPhone customers from using Internet telephone services such as Skype that bypass AT&T’s voice network. That is a sharp reversal for AT&T, which has steadfastly opposed the use of applications such as Skype on the iPhone which use a technology called “Voice Over the Internet Protocol,” or VOIP, to effectively bypass the phone giant’s own highly-lucrative voice services.
AT&T’s announcement came as the Federal Communications Commission has been looking into the recent rejection of a similar application called Google Voice by Apple. The stories offered by the three parties in that standoff vary a great deal. Apple says it has not rejected Google Voice, but is still studying the application. Google says Apple clearly rejected the application. AT&T has contended it has had nothing to do with any decision on the application, even though it would clearly be the biggest loser from Google Voice being allowed on the iPhone.
FCC Chairman Julius Genachowski responded positively to AT&T’s announcesment.
“When AT&T indicated, in response to the FCC’s inquiry, that it would take another look at permitting VoIP on its 3G network I was encouraged,” said Genachowski. “I commend AT&T’s decision to open its network to VoIP. Opening wireless services to greater consumer choice will drive investment and innovation in the mobile marketplace.”
It still remains to be seen if Apple/AT&T will open up the iPhone to Google Voice, but it would seem like a logical move that would likely please the FCC.
Also yesterday, Verizon announced it would soon release wireless handsets based on Google’s Android operating system, a move seen by many as a direct assault on AT&T/Apple’s wildly popular iPhone.
Verizon stressed its new handsets will allow VoIP applications.
We view both of these announcements as steps in the right direction. Access to VoIP services on iPhones will no doubt help consumers save money. And we think some additional aggressive competition for the iPhone can do nothing but benefit consumers by providing more choices for both equipment and services.
But while yesterday's announcement were a welcome departure the anti-consumer practices all too often employed by wireless companies, it is only a step in the right direction. Much more needs to be done before consumers will truly enjoy the benefits of an open and highly competitive market for wireless devices and services.