AT&T jumps right into the heart of the net neutrality war
Several days ago, reports surfaced about AT&T using
its capabilities to hinder or slow down activities by competitors, putting what some anlysts call a dark light on the top tier telco. FreeConferenceCall.com alleged that AT&T used its position and vast resources to block outgoing and incoming calls routed through its service.
Utilizing a complex array of call routing techniques, FreeConferenceCall.com is
able to offer its customers a free service while still making money. The
technique involves routing calls around to different areas and carriers that
charge different rates so that the math works out to FreeConferenceCall.com's
favor. This was heavily frowned upon by AT&T.
After attempts to circumvent the situation, AT&T filed suit against several
localized telcos for allowing the call routing practice to take place. AT&T
officials said that companies like FreeConferenceCall.com were causing it to
lose millions of dollars. "If this phenomenon were to go unchecked, it
would dramatically raise our costs and seriously impede our ability to provide
great services at reasonable prices to our customers," said Mark Siegel,
Cingular spokesman.
What makes the current AT&T situation more intriguing to industry analysts
is that it touches the heart of net neutrality. Net neutrality has been a hot topic of debate for the last
year and in its current state issues are still high up in the air. Currently,
large telcos such as AT&T
and Verizon are up against content providers such as Google and others.
Telco lobbyists long argued that net neutrality was a non issue, and that
despite Congress' concern over the topic, the telcos deemed the issue nonsense.
When FreeConferenceCall.com made claims that AT&T was acting for its own
financial interest and in a monopolistic and anti-competitive manner, Siegel
said "that's absolute nonsense."
It now appears that AT&T will have to do a bit more to cover its tail as
FreeConferenceCall.com has countersued. Siegel said that FreeConferenceCall and
other localized telcos violated FCC regulations but the FCC itself is
conducting its own study on net neutrality. The large telcos have long
opposed what Congress is doing on the issue of net neutrality
The net neutrality dispute will continue to be a hot topic with an uphill climb for both supporters
and detractors. Without any official laws being passed on the topic,
however, service providers such as AT&T, Cingular and Verizon are free to
stipulate any regulations they feel is necessary. Fees are also a major concern
for customers and content providers, fearing that if the principles of net
neutrality aren't kept consumers will face diminishing service quality and higher
service rates.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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