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There’s At Least One Wireless Company That’s For Net Neutrality

Following FCC Chairman Julius Genachowski’s speech this morning that outlined the agency’s plans for new rules regarding net neutrality, it was little surprise that two of the largest wireless providers—AT&T (NYSE: T) and Verizon Wireless (NYSE: VZ)—criticized the idea of regulating mobile networks, too.

Jim Cicconi, AT&T’s SVP of external and legislative affairs, said in a statement (via CNet) that it considers the new rules fair for wired networks, but when it comes to wireless: “We are concerned…the FCC appears ready to extend the entire array of Net neutrality requirements to what is perhaps the most competitive consumer market in America: wireless services.”

But at least one wireless provider thought otherwise. Kirkland, Wash.-based Clearwire (NSDQ: CLWR) issued a statement today by its Chief Commercial Officer Mike Sievert: “Clearwire applauds the Chairman’s efforts to safeguard an open Internet and his desire to strike a balance between consumers’ need for open, rich access to the Internet and appropriate network management practices.”

Perhaps, Clearwire’s opinions on the subject are not surprising. For some time, it has been arguing that it will provide equal access on its wireless broadband network to all internet services and applications. But also it’s possibly influenced by one of its investors and partners—Google (NSDQ: GOOG), which has been one of the most outspoken proponents of Net Neutrality. It’s also true, however, that Clearwire is speaking from a position of strength, rather than just influence. Clearwire has a considerable stash of spectrum, which will allow it to support high-bandwidth applications to consumers well into the future.

While AT&T and Verizon Wireless do have sizable positions, they don’t have the same bragging rights. CNet reports that Verizon’s VP of regulatory affairs, David Young, said in a panel after Genachowski’s speech that these rules will be difficult to implement in the wireless market because of the capacity constraints on wireless networks. “On a wireline broadband network, you know where your customer is,” he said. “So you can build capacity to handle the peak demands. But on a wireless network, you have a crowd converge on a site that suddenly has 10 times or 100 times the users competing for the same resources.”

Genachowski was clear in saying that all roads to the internet must be regulated, regardless if it is wired or wireless—people will expect to access everything no matter what type of network they are using. Having said that, he said wireless networks will have to get additional consideration. He said: “The rulemaking process will enable the Commission to analyze fully the implications of the principles for mobile network architectures and practices—and how, as a practical matter, they can be fairly and appropriately implemented.”

Sep 21, 2009 9:39 PM ET

Wireless Tower Photo: Flckr

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Posted In: Legal, Regulatory, FCC, Mobile, Technologies / Formats, 3G, 4G, Broadband, WiMax, Companies, AT&T, Clearwire, Verizon

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