News recently broke that German automaker Volkswagen rigged emissions tests in the United States to mislead regulators at the Environmental Protection Agency into approving its diesel cars. VW now faces as much as $18 billion in fines as reports trickle in on the company’s widespread knowledge of the ploy.
In the telecommunications realm, where the regulator at hand is the Federal Communications Commission, there appears to be an effort to do much the same thing. Only in this case, lobbying is being used to advance narrow interests. While less abrasive and perhaps more sophisticated than the VW debacle, the efforts underway to rig wireless and Wi-Fi policy is monopolistic cronyism at its worst.
At issue is a potential enhancement to Wi-Fi known as LTE-U, which was developed and tested successfully by a team of engineers from Qualcomm and other technology companies. Its makers maintain that LTE-U will expand the benefits of 4G LTE wireless connectivity for consumers into unlicensed spectrum and deliver a more dependable wireless connection when the traditional LTE network is congested. Wireless companies predominately use licensed spectrum sold by the government to facilitate calls and data sharing. Wi-Fi hotspots, and technologies like wireless speakers and Bluetooth, use unlicensed spectrum, which is not owned or regulated by anyone absent malicious actions by hosts.
Opponents of LTE-U — including an odd alliance of Comcast and Google — unsurprisingly have a lot invested in unlicensed spectrum and maintain significant market power. They claim that the new technology could undermine or disrupt Wi-Fi connections. But test data from LTE-U developers show that LTE-U seeks to be a partner with Wi-Fi — designed to fairly share unlicensed spectrum. “The most important thing to realize about LTE-U and Wi-Fi coexistence,” prominent industry engineer Richard Bennet recently wrote, “is that neither one has any stake in knocking out the other’s transmissions.”
Moreover, Wi-Fi is no magic bullet for avoiding congested networks. As consumers know, Wi-Fi – whether in a coffee shop or a car – is unreliable. The cable industry tries to compensate by offering to allow customers to use related Wi-Fi routers if they travel, taking their cable subscription with them wherever they go. But LTE-U could perhaps provide true seamless mobile coverage, using the LTE-U technology only when the cell network is full.
The issue is highly technical, perhaps enabling easier manipulation by LTE-U opponents, but it is still cronyism, facilitated by a cable industry well versed in the practice of blocking competition. Tactics in this fight mirror industry’s historic pattern of blocking multiple providers in the same market. This cronyism is perpetuated and exacerbated today in the provision of Internet services.
The power of this monopoly is hard to dispute. As Wall Street Journal columnist Holman Jenkins recently wrote, “No industry, except maybe health insurers, has benefited so much from Obama policy as cable companies.”
In this fight, though, President Obama should reject the self-serving pleas from Comcast CEO David Cohen when they next have a “friendly” golf outing. LTE-U could be a critical partner to Wi-Fi, and offers a solution to help constrained wireless networks. There has been extensive testing and public demonstrations by Qualcomm proving that LTE-U not only works, but that it further acts as an enhancer of, and partner with Wi-Fi.
Greed and blocking competition is sadly commonplace in D.C., but when it comes to this fight, it is also very bad policy. Unlicensed spectrum is just that — unlicensed and free for usage by any bona fide provider. Upending longstanding policy to change that by denying a new technology to come to market is both illogical and monopolistic. If LTE-U opponents want to make a bold move toward real competition, they should bid for licensed airwaves in the landmark spectrum auction next year. Established wireless companies would not block their participation. In fact, they would welcome it — rejecting the cable industry’s historical pattern of protectionism.
The monopolists and crony capitalists in this fight may not be as brazen as VW in misleading the regulators and consumers. But their fallacious claims nonetheless must be exposed and rejected by the FCC so that consumers can reap the benefits of this exciting new technology called LTE-U.
Hon. Christopher D. Coursen is founder of the Status Group. He formerly served as majority communications counsel for the Senate Commerce Committee and advised the Ronald Reagan and George H.W. Bush administrations. Thinking of submitting an op-ed to the Washington Examiner? Be sure to read our guidelines on submissions.
