Wireless industry pushes back on data roaming regulation

Two of the nation's largest wireless carriers have voiced their opposition to the Federal Communications Commission's proposed data roaming rules for mobile devices, arguing further regulation will harm consumers and discourage private investment.

Both Verizon and AT&T have come out against the proposed rule, aimed at smartphone users that make use of wireless data networks while out of their network coverage area. The bill would require carriers to sign agreements to allow reciprocal roaming on each other's networks without users being hit with high roaming charges. The FCC already has a similar policy in place with regards to mobile voice services, but data services like mobile Internet and e-mail were excepted from that 2007 rule.

In comments submitted Monday to the FCC, Verizon argued the rules are unnecessary because a number of carriers — including Verizon — have already entered into voluntary roaming agreements with each other. Verizon also claims the FCC lacks the authority to police data roaming because it is not a common carrier service and not covered under the Communications Act.

"The Commission has repeatedly found that heightened regulatory obligations could discourage investment and innovation," states Verizon in its submission. "Because the facts do not show that there is a market failure or that consumers are being harmed in any way, the Commission should continue its hands off approach to mobile data services and should not adopt a data roaming requirement."

In a blog post published in April, AT&T contends that the proposed rule would discourage companies that already own wireless spectrum from developing their resources. Instead, smaller companies would take advantage of "home roaming" at the expense of building out their own networks, according to AT&T.

"The Commission has removed a key incentive for a company to invest in, and build out, long-held spectrum licenses in less-populated, rural areas of the country," writes Bob Quinn, senior vice president for federal regulatory policy. "While we understand why that might be some carriers’ preferred business model, it is not sound regulatory policy."

Quinn also accuses other carriers of focusing on densely populated urban areas while relying on the networks of larger firms like AT&T to roam in less-populated rural areas. He adds that both of the sections of the National Broadband Plan aimed at improving the use of spectrum have actually harmed rather than advanced the cause.

"Let’s face it, if a carrier hasn’t built out its voice network in the last 10 years, the likelihood of that happening now is about as good as the Nats winning the World Series this year," Quinn writes.