Blog: Cellular Carterfone

Maybe it's the criticism Verizon has been getting on blogs, in the press, from academics, and in Congress for its anticompetitive behavior. Maybe it's pressure from activist groups like Save the Internet. Maybe it's the upcoming spectrum auction, where the FCC implemented some (but not enough) rules to encourage mobile competition, and Verizon sees the writing on the wall. Maybe it's because they refused to launch the iPhone on their network, and instead Apple ended up with an exclusive with AT&T. Maybe it's Google's recent announcement of their open Android platform.

Whatever the reason, yesterday Verizon—the most control-freak-ish of mobile carriers, the one that cripples phones to disable WiFi or Bluetooth or anything that might compete with their high-priced service add-ons, the one that refused to give NARAL SMS access, whose BREW system locks out all but the deepest-pocketed developers—that same Verizon Wireless yesterday announced that it will open up its network to any phone, the "cellular Carterfone" Tim Wu has been advocating.

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Walt Mossberg of the Wall Street Journal calls out the telephone companies for stifling innovation and limiting consumer choice. The telcos claim that their market is competitive, that they are empowering rather than restricting their customers, but unlike Congress, Mossberg isn't fooled. (Mossberg doesn't receive tens of thousands of dollars in campaign contributions from the telcos.)

A shortsighted and often just plain stupid federal government has allowed itself to be bullied and fooled by a handful of big wireless phone operators for decades now. And the result has been a mobile phone system that ... severely limits consumer choice, stifles innovation, crushes entrepreneurship, and has made the U.S. the laughingstock of the mobile-technology world.

That's why I refer to the big cellphone carriers as the "Soviet ministries." Like the old bureaucracies of communism, they sit athwart the market, breaking the link between the producers of goods and services and the people who use them.

Great framing by Mossberg, and great that someone of his stature is laying out the facts.