Truphone, T-Mobile, Skype, and the Federal Communications Commission…. July 17th, 2007  

The US market is highly regulated when it comes to sending text messages to consumers. Due to the fact that users there pay for receiving SMS messages, to be able to send text messages from a service like Rebtel we’re required to go through a certification process by each mobile operator in the US.

This is great, as it protects users. But two of the largest operators are declining our application because we’re cannibalizing on their international call revenue. Yet another example of network operators abusing their dominance in the market preventing new entrants from bringing value and innovation to the customer.

However, it does look as though some small headway is being made. T-Mobile has just been ordered to stop blocking WiFi rival Truphone’s calls. Truphone, which routes calls via WiFi when handsets are within range of wireless hotspots, accused T-Mobile of abusing their dominant position in the market, and yesterday the High Court granted an intermin injunction, forcing T-mobile to connect calls made to Truphone numbers.

James Tagg, Truphone’s chief executive officer, says:

“The injunction is good news not only for Truphone but for every company trying to develop internet-era services and for every consumer wanting freedom of choice and lower prices. We are determined to bring better-value mobile calls, text messages and other innovative services to mobile phone users, and it’s right that we should not be prevented from doing so.”

Over in the US, meanwhile, Skype are petitioning the Federal Communications Commission (under the “Carterfone” rules) in an attempt to force US mobile operators to loosen controls on what kinds of hardware and software can be connected to their networks. If the rules of the upcoming Federal Communications Commission auction of 700MHz spectrum (probably due to take place in January 2008) are written in such a way as to encourage ‘open access’, the wireless market might finally be able to evolve into an open, thriving, innovative network, free from the stranglehold the mobile operators currently have on it. With Truphone’s case set to continue later this year, it looks like this winter might be an interesting one…

By: admin