Archive for the ‘Sprint’ Category

Verizon’s Smoke At The FCC Is So Thick You Can Cut It With A Knife

Thursday, April 17th, 2008

I want to go on the record. Rebtel does not promote the use of alcohol, tobacco products, guns, other weapons, or illegal drugs. Nor does Rebtel advocate or have anything to do whatsoever with intense profanity or violence, graphic depiction of sexual activity, nudity, or hate speech.

We are not SPAMers or purveyors of fraudulent materials or activities that are restricted by law to those over 18, such as gambling or lotteries.

Nevertheless, if you take the time to wade through the nearly 200 collective pages of legal mumbo jumbo recently filed with the Federal Communications Commission (FCC) by Verizon, AT&T, T-Mobile, Sprint Nextel and CTIA – The Wireless Association, you might actually come away thinking we are. Or could be.

In fact, the only thing we do at Rebtel is give consumers an alternative way to make an international call from their mobile phone, for which we charge them a few pennies per minute instead of mobile operators’ ridiculous rip-off rates.

As you might guess, the carriers are not wild about our service – even though it’s super simple and very low cost to implement. Just ask our friends at Skype, Jajah and Jaxter which are now blatantly copying Rebtel’s invention.

That, however, is an entirely separate kettle of fish.

The issue at hand before the FCC is very straightforward. And we totally agree with AT&T, which wrote in its filing that it is important for the FCC to be clear as to what this proceeding is about, and more importantly, what it is not about.

AT&T wrote in its filing: “This proceeding is not about the ability of wireless customers to exchange [text] messages with other wireless customers. What is at issue is whether wireless carriers can be forced to enter into joint marketing arrangements with content providers through the activation of short code campaigns.”

But for some reason they got it backward. The issue concerning Rebtel is all about the ability of wireless customers to exchange text messages with other wireless customers, and has absolutely nothing to do with marketing using short code campaigns.

As I’ve discussed here in the past, short codes, among other uses are how text messages (SMS) get sent from a company’s web site to an individual’s phone in the U.S.

What’s happening is the carriers’ customers want to send themselves a text message from the Rebtel web site and they want to receive text messages that their friends, family and work colleagues send to them from the Rebtel web site.

But Verizon and Alltel won’t approve a Rebtel short code campaign that would allow those messages through. And while AT&T has approved Rebtel’s campaign, it transmits the messages as flash SMS so they disappear if you don’t immediately save them when they arrive.

All these games because the carriers don’t like what’s in the messages: local phone numbers where you live that connect you to friends abroad.

Verizon wrote in its filing that it does not block text messages, “except those addressed to its subscribers that are captured by its spam filters, or that are affirmatively selected for blocking by its subscribers.”

But there is no mass mailing of text messages going out from Rebtel that might be trapped by a SPAM filter. Instead every single messages is 1:1 sending initiated by the Verizon or AT&T or Alltel or whatever customer to either themselves or from a friend.

What the carriers are doing is really no different than if Verizon started listening into customers’ voice calls and disconnecting the calls if someone talks about a better deal over at AT&T.

So, let’s cut through the baloney. This is about business.

We created Rebtel with a very simple vision: Take the phony out of telephony.

Our mission: Create a genuinely good, honest, trustworthy global communications service that saves people money.

And we set out in 2006 to build a company on just three values: Always take the customers’ side, whatever you do must be clear and simple, and have no fear – do the right thing.

That approach has paid off. Rebtel blew past 1 million regular customers months ago and we’re now tripling in size every three months in terms of new customers, revenue and minutes carried.

In contrast, I think Verizon’s approach of trapping customers into multi-year contracts and then milking them for every penny possible is beautifully captured in its request for the FCC to dismiss the petition filed by Public Knowledge, Free Press and other leading consumer advocacy groups.

Verizon argues that the complaints in the petition refer to “isolated instances” that don’t warrant government involvement. “If consumers want to join a short code campaign that Verizon Wireless has not enabled, they may switch to a provider willing to enable that campaign.”

Okay, Verizon – which providers do you suggest? And, by the way, will you wave the penalty fee on my contract when I do?

Verizon: Time to walk the walk

Wednesday, December 5th, 2007

Skeptical?  You bet!  But we’re in good company.

Verizon is talking openness out of one side of its mouth while the other side is shutting down Rebtel’s application for a harmless short code campaign that would allow customers to set up new local numbers for global contacts with one quick SMS. 

Verizon has been putting on the PR push to position itself as all open and friendly just in time for the January auction of the “C-Block” of 700MHz radio spectrum.   

It’s a good story. In a recent BusinessWeek interview, Verizon CEO Lowell McAdam announced that as part of Verizon’s new “any app, any device” future, his company would support Android, Google’s open mobile operating system.  He goes on to say that this change is far from a sudden course correction — that he’s been trying to figure out how to make Verizon open for a year.  Yet it was only just a couple of months ago that Rebtel’s application for a short code campaign was summarily dismissed.

Short codes are those five-digit numbers that connect you to someone or something instead of dialing an entire phone number.  You may have used a short code to vote for your favorite American Idol, for example.  Rebtel wants these short codes to give customers a fast and easy way to create new local numbers for calling abroad instead of having to first dial a Rebtel operator or use the Rebtel web site.  

But to get short codes you have to apply to each carrier for a campaign, which Rebtel did through its U.S. service provider. 

Sprint said, yes.  AT&T said it might approve our campaign, but only with a bunch of changes, which we’re working on.  And Verizon, Alltel and T-Mobil all said, no. 

According to Adam Liptalk’s story in the New York Times, experts say private companies like Verizon probably have the legal right to decide which messages to carry — that the laws forbidding carriers from interfering with voice transmissions on ordinary phone lines do not apply to text messages. 

Rebtel, however, believes this is a Net Neutrality issue – whether carriers or Internet service providers should have a voice in the content they deliver to customers. And, in our opinion, the Verizon rejection of Rebtel’s short code campaign is nothing short of an anti-competitive abuse of power, much like their rejection of Nara Pro-Choice America’s short code campaign was interference with political speech and activism. 

Just like with Nara, we want Verizon to reverse its decision on Rebtel.  Why can everyone from Burger King to Barak Obama use short codes but not Rebtel customers?

And, given his opinion piece in the Wall Street Journal, I would think Walt Mossberg should be a loud supporter of this cause. 

Regardless, talking the talk is all well and good, but if Verizon really believes in openness we think it’s high time it walks the walk, too. Â