"Consumers expect mobile data services that will allow
them to remain connected wherever they go," the FCC said in its statement.
"A data roaming rule will help ensure that consumers' services are not
interrupted and that coverage is available on a competitive basis."
The nation's two largest carriers have cried foul.
Tom Tauke, Verizon executive vice president of public
affairs, policy and communications, told Bloomberg
that the order "is a defeat for both consumers and the innovation fostered
by true competition" and "a new level of unwarranted government
intervention in the wireless marketplace."
Folks at AT&T weren't much happier, though had a more
specific complaint. "A data-roaming mandate is unwarranted and will
discourage investment," said Robert Quinn, AT&T chief privacy officer
and senior vice president of federal regulatory, according to Bloomberg.
"Proponents of a roaming mandate were seeking government intervention, not
to obtain agreements—which are plentiful—but rather to regulate
rates downward."
By creating a more competitive landscape, the order could
benefit AT&T, which is in the
process of trying to acquire T-Mobile—a move that some, including
Sprint, have decried, saying it would hurt the ability of smaller carriers to
compete. Were the deal to go through, AT&T and Verizon would control an
estimated 70 percent of the American wireless market.
AT&T CEO Randall Stephenson, in an interview
with USA Today regarding the T-Mobile deal, downplayed the inability of smaller carriers to truly
compete effectively. Not addressing
the more rural swaths of the country where the FCC's new order may more likely
apply, Stephenson noted that "in 18 of the top 20 markets, the customer
has a choice of five different [mobile operators]. It's a fiercely competitive
market today."
Commenting on the new order, FCC
Commissioner Michael Copps, a Democrat, said in a statement that it
advances two key goals that he and the FCC share — to protect consumers
and to promote "sorely needed" competition in the wireless market.
"These safeguards ensure that small regional carriers
can hope to compete in the wireless market place while investing in their own
build-out of facilities," Copps continued. "It means that their
subscribers can have comparable flexibility to move about the country as
customers of the wireless behemoths."
Commissioner Robert M. McDowell, a Republican, explained in
his own statement his reasoning for coming out against the order. Saying he
believes that "certainly it is important that all consumers, no matter
where they live, work or travel, have the ability to benefit from the most
advanced wireless services in a competitive market," he nonetheless finds
the FCC to be overstepping its bounds and in violation of Title II and Title
III of the Communications Act.
"I ... agree with my colleagues that many benefits flow
from the widespread availability of data roaming," said McDowell. "Nonetheless,
the Commission simply does not have the legal authority to adopt the regulatory
regime mandated by this order."
The FCC explained in its general statement that it has
"implemented a data roaming obligation pursuant to its authority under the
Title III of the Communications Act, which provides the Commission with
authority to manage spectrum and establish and modify license and spectrum
usage conditions in the public interest."
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