White House Threatens Net Veto

The executive office of U.S. President Barack Obama stated Tuesday that the White House strongly opposes passage in the Senate of a resolution that could impact the equal availability of the Internet to all classes of users.

The resolution introduced in the Senate disapproves a rule submitted by the Federal Communications Commission in December on the net neutrality issue, and states that it should have “no force or effect”.

If the President is presented with the resolution, S.J. Res. 6, which would not safeguard the free and open Internet, his senior advisers would recommend that he veto it, the administration said.

The FCC Report and Order adopted the rule that fixed broadband providers may not unreasonably discriminate in transmitting lawful network traffic”. A “no blocking” rule states that fixed broadband providers may not block lawful content, applications, services, or non-harmful devices. Mobile broadband providers are also prohibited from blocking lawful websites, or block applications that compete with their voice or video telephony services.

The U.S. House of Representatives has already passed in April a Republican-backed resolution disapproving the FCC rules, and asking for their roll back.

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Want A $19/Month Mobile Plan?

A new wireless operator is gearing up to launch next week with plans offering unlimited data, voice and texting for $19 a month and no contract.

Republic Wireless, a division of Bandwith.com, will provide the service through Voice over IP using the nearest available Wi-Fi hotspot starting Tuesday, Nov. 8, a spokesman confirmed via email.

When a wireless phone user is traveling, the service will be provided through traditional cellular connections, initially over the Sprint network.

One important catch: Republic will require that its users have a new Android-based smartphone equipped with hardware and software that supports automatic switching from Wi-Fi to cellular. The device must have single phone number that works on both networks.

Republic hasn’t disclosed further details on phones the network will support. The company said more details will be made available on the launch date.

Republic calls its Wi-Fi and cellular mixture “Hybrid Calling,” a strategy it said reduces the costs for network services and makes the $19 flat monthly “membership” rate possible.

Republic estimates that smartphone users are within reach of Wi-Fi over 60% of the time, said the spokesman, Kevin LaHaise.

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Sprint Sues To Stop AT&T-T-Mobile merger

Sprint on Tuesday announced it has initiated a lawsuit against AT&T and Deutsche Telekom to block the two companies from merging “as a violation of Section 7 of the Clayton Act.” Section 7 of the Clayton Antitrust Act bars any person from acquiring “the whole or any part of the stock or other share capital” that would “substantially … lessen competition, or to tend to create a monopoly.” In its suit, Sprint argues that the proposed merger would violate this act because it would lead to AT&T and Verizon’s controlling 75% of the wireless market while taking in 90% of the profits.

Sprint’s antitrust suit comes less than a week after the U.S. Department of Justice filed an antitrust suit against the merger with the U.S. District Court for the District of Columbia. In its suit, the DOJ similarly argued that the proposed merger would significantly damage competition in the wireless industry, especially since T-Mobile has historically offered low-cost wireless voice and data services for customers. The DOJ also contended that any efficiencies gained by combining AT&T and T-Mobile spectrum would not be enough to offset the damage done to U.S. consumers by further consolidation of the wireless industry.

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T-Mobile Will Offer Unlimited Data Plans

Wireless telecom firm T-Mobile USA said it will begin offering unlimited data service plans, in a move aimed at snagging customers of bigger rivals Verizon Wireless and AT&T Inc which have discontinued offering such plans.

T-mobile, a unit of Deutsche Telekom AG, said the new plans will become available from July 24. The unlimited plans will be available with a two-year agreement for new and existing customers.

Verizon Wireless, the biggest U.S. mobile provider, said earlier in July it will stop offering unlimited data service plans, meaning higher prices for heavy users of services such as mobile Web surfing.

AT&T had stopped offering unlimited data services last year.

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NY To Investigate AT&T’s T-Mobile Acquisition

The state of New York  has indicated that it will investigate AT&T’s proposed take over of T-Mobile USA for anti-competitive effects, including possible increases in mobile broadband costs for New York residents and businesses, Attorney General Eric Schneiderman said.

New York is the first state that has committed itself to probing the $39 billion deal, which was announced on March 20 but is expected to take 12 months to close. At their current sizes, the combined telecom companies would have 130 million subscribers, dwarfing the next-biggest operator, Verizon Wireless, with 93 million. In a press release on Tuesday, the attorney general’s office raised the possibility of Verizon responding with an acquisition of Sprint Nextel, which has about 58 million subscribers.

“The proposed merger could start a process of consolidation that would lead to two firms -AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide,” Schneiderman stated.

Schneiderman said mobile service has changed from a luxury to a basic necessity and T-Mobile currently is a low-cost option for many New York residents. People in some areas, including Albany, Rochester, Buffalo and Syracuse, already have limited wireless choices, he said.

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