Public Interest Groups Ask FCC to Investigate MetroPCS Pricing Plan
Five public interest groups led by Free Press said the FCC should investigate MetroPCS’s recently announced low-cost data plan, which would apparently preclude users from using Skype, Netflix and other popular services (CD Jan 5 p1). But customers would be able to watch YouTube videos. The Center for Media Justice, the Media Access Project, New America Foundation’s Open Technology Initiative and Presente.org signed the letter to FCC Chairman Julius Genachowski.
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"By selectively blocking or capping the use of some Internet content, web sites, applications, and services, MetroPCS appears to be in violation of the Commission’s recently adopted open Internet rules,” the groups said. “Although these rules have not yet taken effect, the Commission must not use this as an excuse to ignore or delay action on MetroPCS’s harmful practices. The Commission must act immediately to provide guidance to a growing industry and to help ensure that its recently adopted rules are not being immediately violated on the first day they take effect.”
MetroPCS denied any wrongdoing. “The recent complaints about our new, pro consumer, pro competitive 4G LTE rate plans are erroneous,” the company said in a statement. “We continue to offer consumers a full service, unlimited data plan. We increased consumer choice by adding two new rate plans that are less expensive and enable consumers to select the service and content they want at a price point they can afford. These new rate plans comply with the FCC’s new rules on mobile open Internet."
The MetroPCS announcement “appears to vindicate the predictions of many observers, that both the substance and enforcement of the Commission’s new open Internet policies will be pushed to their limits and beyond by a recalcitrant industry,” the letter said. Strong FCC action would “discourage Verizon, AT&T, and other carriers from following suit."
"MetroPCS’s practices are particularly problematic because, as the company itself recognizes, it disproportionately serves lower-income subscribers, the same audience that is increasingly relying on mobile access to the Web,” said Free Press Policy Counsel Chris Riley. “A walled garden in mobile broadband leaves a large number of Internet users on the wrong side of the digital divide."
Senior Vice President Andrew Schwartzman of the Media Access Project said parts of MetroPCS’s plan remain unclear. “This is exactly the way we expected carriers to ’test’ the FCC’s resolve with respect to wireless network neutrality,” he said. “Unless the Commission responds decisively, MetroPCS’ competitors are likely to follow suit.”
"I am not surprised that Free Press and its allies are already back at the commission trying to get the agency to expand the scope of its net neutrality rules,” said President Randolph May of the Free State Foundation. “But I am disappointed. The type of usage-based plan implemented by MetroPCS is clearly envisioned for wireless providers by the agency’s order.”