FCC and Net neutrality: the realities of how it will affect Apple
Federal Communications Commission Chairman Julius Genachowski will deliver a speech on Monday that sources say will outline a plan to adopt new net neutrality rules.

According to a report published by Reuters, the FCC chairman’s plan will seek the adoption of new rules intended to ensure that ISPs can’t arbitrarily block or slow down their customers’ access based on content.
The concept of net neutrality maintains that ISPs, including both broadband cable and DSL providers as well as wireless mobile companies, must deliver data to their customers irrespective of its source, destination, ownership, or the protocol used to deliver it.
While Apple generally benefits from the principle of net neutrality, its partnership with AT&T has resulted in at least two issues that concern the principle. The first is Apple’s rejection of the Google Voice app on the iPhone. The FCC has been investigating the incident to determine if Apple’s decision is effectively being made by AT&T to restrict potential competition in wireless services.
The FCC lacks the jurisdiction to determine what apps Apple must sell in its App Store, and Apple maintains that it has yet to even determine if it will approve some form of the Google Voice app. Additionally, it is possible for Google to deliver a web-based version of the app on the iPhone without Apple’s approval, clouding the issue of whether the dispute is actually an issue of net neutrality at all. Apple does ban VoIP applications from using the iPhone’s mobile network, a policy that is clearly related to carrier demands and may likely be affected by new net neutrality rules.
The other issue that the FCC is investigating concerns exclusive sales of phones on specific providers. Apple’s exclusive deal with AT&T has brought that issue to the forefront, both for users who want to use the iPhone on other providers, and for small regional providers who lack the clout to make similar deals. Technology constraints also factor into the matter, as the existing iPhone simply can’t work on the CDMA networks run by the Verizon and Sprint, the providers most affected users would like to be able to use it on. That may change in the next several years as Verizon and AT&T both build out compatible new LTE networks.
The FCC chairman’s new proposed rules addressing net neutrality are likely to only involve broadband and wireless ISPs. The agency has not yet commented on the other issues still under investigation pertaining to VoIP competition on mobiles and exclusive handset sales.
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