NeoMedia Technologies, Inc (NEOM)

[in4it]

Good DD:Wireless Coalition Calls
For 'Open Access' Network
By AMOL SHARMA

A new coalition of wireless industry entrepreneurs is joining the voices calling for the government to back the creation of a nationwide wireless network that would make it easier for mobile device makers and service providers to get their products in front of customers without the blessing of cellphone giants like AT&T Inc. and Verizon Wireless.

The Wireless Founders Coalition for Innovation plans to send a letter to Federal Communications Commission Chairman Kevin Martin Thursday afternoon spelling out its recommendation that a slice of radio spectrum in an upcoming wireless auction be designated for such an "open access" network.

Among the 15 people who signed the letter are the founders of Virgin Mobile USA, a prepaid U.S. carrier that leases network capacity from Sprint Nextel Corp; the founder of Zingy, a top provider of mobile content downloads; the chairman of mobile email provider Seven Networks Inc; and the CEO of handset software maker mPortal Inc.



Hey, William Hoffman, here is another opportunity knocking



The push for an open access network is one of the many battles that have broken out as the FCC prepares rules for an auction of spectrum in a valuable band of frequencies that are being vacated by television broadcasters. Established cellphone carriers like Verizon are sparring with various corners of the technology and wireless industries.

Frontline Wireless LLC, a startup launched by former FCC Chairman Reed Hundt, touched off the debate when it proposed an open-access network. The idea has been endorsed by tech companies ranging from Google Inc. to eBay Inc.'s Skype, along with a coalition of advocacy groups called the SavetheInternet.com Coalition. Frontline and others would be able to bid to be the network operator under such a system, wholesaling out access to other providers.

The cellphone carriers, for their part, say there's no need to set aside valuable spectrum to build such a network. They say there's plenty of innovation in the wireless industry already, and no need for such a radical change. Verizon, which is among the carriers most interested in bidding in the auction, doesn't want to see new constraints on a chunk of those frequencies. Verizon wants to obtain more spectrum for mobile broadband services and has aggressively opposed the Frontline Plan.

Wireless companies such as handset manufacturers and software makers are normally reluctant to weigh in publicly on such disputes, because their fate is so closely tied to having good relations with cellphone carriers, especially in the U.S., where operators exert significant control over which phones and services work on their networks.

The Wireless Founders Coalition includes people who have started mobile businesses in recent years and have first-hand knowledge of the process to get products approved by carriers. But it doesn't include some of the largest companies like handset makers Nokia Corp. and Research in Motion Ltd. Executives of those companies privately criticize the closed U.S. system but are reluctant to rock the boat publicly.

"When you come up with an idea for the Internet, you just put in on the Web, but when you come up with ideas for mobile phones, it's really hard to try them out and get them in front of customers," says Amol Sarva, a founder of Virgin Mobile USA who is a member of a coalition.

It can take months to get a handset approved to operate on a carrier's network. And deals are often exclusive. For example, the Apple Inc. iPhone, which is launching June 29, will only be available through AT&T. Startups providers offering new services in video, social networking or music often have to go through layers of approval at the operators, Dr. Sarva says. The major cellphone operators keep secret the specifications that would make it easy for entrepreneurs to launch their products and ensure they're compatible with carrier networks.

"We believe the wireless industry is ripe with opportunities for innovation and economic growth, but the large wireless carriers currently act as gatekeepers to block or deter many of these opportunities," the group wrote in the letter.

The carriers say scrutinizing new services before putting them in front of customers is vital, especially given the limited capacity of their networks when it comes to services such as video. "If four Sling boxes are put on a cell site, you can take it down," says Tom Tauke, executive vice president of public affairs and communications at Verizon Communication Inc., which co-owns Verizon Wireless with Vodafone Group PLC. "There have to be rules for the network."

The FCC is likely to set rules for the coming auction in the next several weeks.

Write to Amol Sharma at [e-mail]


So I guess there is a war going on!!!

http://online.wsj.com/article/SB118124664668428164.html?mod=googlenews_wsj