Group asks FCC to probe iPhone Skype restrictions
It didn't take long for Skype's free application for Apple's (AAPL) iPhone to climb to the top of the App Store bestseller list — nor for net neutrality advocates to cry foul over the restrictions placed on its use.
In the first two days after its release, the iPhone Skype app has been downloaded more than a million times — about six downloads per second, according to Skype's official blog.
The application allows iPhone and iPod touch owners to make free and low-cost international calls over Wi-Fi networks. But in deference to AT&T (T), the iPhone's exclusive carrier in the U.S. market, Apple blocks Skype calls made over AT&T's cellular networks. That makes Skype useless for telephony when it's out of range of a Wi-Fi network.
And that's what has the open-Internet advocacy group Free Press crying foul. Arguing that the airwaves should be treated by the same common carrier standards applied to telephone wires, it has asked the Federal Communications Commission to investigate whether Apple and AT&T have violated federal rules.
According to the Wall Street Journal, such a request might get a more sympathetic hearing from the new administration that it would from the old. As a candidate, President Obama expressed support for the principles of net neutrality, and his choice for FCC chairman, Julius Genachowski, is said to have helped Obama craft his position on the matter. (link)
AT&T has declined to comment, and since Apple never comments, it didn't either.
See also: Skype by the numbers
When apple comes out with a camera on the front of the iphone like the macbook and we can video conf call… then i'll pay big time for the app!!
What many commenters here are failing to note is that Skype is a special product. It is a peer-to-peer application that uses your network connectivity for other Skype users' gain.
If it were simply a VOIP issue—whereby a direct connection is made—I would easily side with the consumer. But in this case of a peer-to-peer client, they simply cannot allow the added congestion that is associated with these protocols.
And please note the added verbiage associated with this network protocol as they specifically call it out. That was very much intentional and reflects their awareness of what this program could do to their quality of service.
If AT&T is going to be forced to allow Skype, I certainly hope they would be allowed to raise the price of their services. Get ready for that. (Agree with AT&T)
Copper that AR&T uses was paid in whole by taxpayer dollar, so I wonder (not being a technologist) if this fact weakens, strengthens, or makes no difference to AT&T's decision to deny Skype?
@ GM – I understand net neutrality perfectly. I also understand Apple and AT&T are running a business. If you think it is a business's obligation to drive themselves into bankruptcy for the good of the consumer you'd be better off living in Zimbabwe or Venezuela.
Perhaps to counter the threat of having Skype forced on them by the Gov't AAPL & AT&T, and every other phone maker and telecom, should just stop making or selling phones that have Skype capabilities at all?
You want your cake and to eat it too. With that attitude businesses go bankrupt and you get no cake – or neato iPhones.
As an afterthought, this is win win for AAPL. They bring Skype to the iPhone, which makes them look good, and blame AT&T for limited access, which isn't their decision anyway.
This is a copy of what I sent AMY SCHATZ. It is just as valid here.
"I have a house full of Apple computers, iPods, etc, BUT I don't believe Apple is always correct; this is one of those times when Apple-think is bad-think. Some days they are just too full of themselves.
Apple should not prevent the iPhone from accessing Skype type services or any other voice or data process, either via wifi or the cellular carrier to whom the customer is paying a monthly bill. Preventing competition by limiting the customer's options at the phone, is inexcusable. Even Apple should understand how wrong this is, but they are becoming more like Microsoft monthly (failing to externalize their thought process).
This is not just a "Skype" issue, however. For example, using an iPhone I should be able to create a virtual private line to my business or home or both, without using Skype.
Regarding AT&T, who is obviously behind demanding the anti-competition limitation in the iPhone: They should stop thinking like an old Bell operating company lest the FCC smite them yet again. Remember; they were busted -up to enable free choice of equipment for the customer, to use their equipment (an iPhone in this case) in any way that is privately beneficial, that does not (technically) harm the network.
The entire Apple and AT&T decision needs to be looked at by the FCC to see if they are unfairly foreclosing on customer options.
I am a liberal (and proud of it) and definitely NO FRIEND of ATT. I also believe in net neutrality.
However, in this case I do agree with ATT. There is something not quite fair about taking advantage the network provided by one company to circumvent their own (however outrageous) telecommunications charges. They do, after-all, have expenses incurred in providing that bandwidth and the telephony uses significant amounts thereof. Large usage could potentially (I think) degrade the usage of other customers (tho so does viewing of video).
@Doug
Does not bit Jobs at all. He does not care in the least if ATT is forced to open up to Skype. In fact, it would probably sell a lot more iPhones if they were open.
As for ATT's charges, I avoid them by not owning a cell phone at all.
@ Mike O: You clearly don't understand net neutrality at all. Think of every site that you like to visit on the Internet. Should your broadband provider be able to arbitrarily block those sites whenever they want because they feel they have a better solution or that their business model is threatened? This concept threatens the viability of the Internet as a platform for innovation. Anyone who appreciates technology, innovation, and productivity should care. Your position implies that only liberals value the benefits of increased productivity. Are you sure you want to argue that?
I think AT&T has a good case. Skype would be using ATT's own network to wipe out their Long Distance business. I'm a Liberal, but not a Communist.
Apple & AT&T can still make money as they will still be able to change the price of their data plans. Allowing other voice alternatives would simply inject competition into the telephone market and give consumers more choice. You could choose which carrier you want, based on their coverage, speed and price, then you could choose which telephone provider you want, based on their call quality and price. Competition and consumer choice are key pillars of capitalism, so how could anyone who hails the virtues of capitalism be against it? All the anarcho-capitalists want us to just shut up and bend over, but the intelligent among us know better than that.
"Such a request might get a more sympathetic hearing from the new administration that it would from the old." Steve Jobs' liberal politics now bite him in the butt. LOL!
That makes Skype useless when it’s out of range of a Wi-Fi network.
"Useless"? You can still use text chat over the cellular networks. I don't see how you can qualify that as "useless."
ex ped: Good point! Hadn't thought of that. Changed to read: "That makes Skype useless for telephony when it's out of range of a Wi-Fi network."
I absolutely agree – W/ Apple and AT&T. If a company can't make a buck the whole business model fails, and you end up w/ a big zilch. Count your blessings you get Skype at all and shut the @#$% up. People can't appreciate how good they have it and always want more.
Your reported iPhone Skype download rate does not match the rate shown on the referenced blog. The blog reports the rate as "…around six downloads every second." You've inverted the value to a download every 6 seconds.
ex ped: I can't believe nobody caught that before. Thanks, Robert. Fixed.