Consumer Advocates Say MetroPCS Plan Violates FCC Neutrality Rules

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Warning that MetroPCS's new pricing plans could set a dangerous precedent, a coalition of consumer groups officially asked the Federal Communications Commission to probe the wireless company. The groups, including Free Press, Center for Media Justice and Media Access Project, say that MetroPCS's pricing scheme violates the FCC's recently passed neutrality rules because MetroPCS will block some subscribers from accessing Skype, Google Voice and other competing VoIP services.

"The Commission must act immediately to provide guidance to a growing industry and to help ensure that its recently adopted rules are not being immediately violated on the first day they take effect," the groups say in a letter to the FCC. The agency passed neutrality rules in December by a 3-2 vote, but the regulations do not go into effect until 60 days after they're published in the Federal Register.

The rules prevent wireless carriers from blocking competing applications.

Last week, MetroPCS rolled out controversial new pricing plans, including one that offers subscribers unlimited voice calls, text messages and YouTube access for $40 a month. That plan appears to prevent users from accessing VoIP services like Skype and Google Voice. In addition, it appears to block users from visiting Netflix on their mobile plans.

MetroPCS is offering other, less restrictive tiers of service for $10 and $20 a month extra.

But the consumer groups say that MetroPCS's cheapest plan is unlawful because a restriction on competing VoIP services runs afoul of the FCC's neutrality order, which prohibits wireless providers from blocking lawful sites and competing applications.

In addition, they argue, MetroPCS is acting arbitrarily by charging consumers more to access Netflix than YouTube. "By permitting YouTube videos and Web sites to be viewed without limit, while simultaneously disallowing or restricting the use of other voice and video Web sites and services, MetroPCS's actions harm competition, consumer choice, and innovation," the advocates say.

The FCC's neutrality order does not directly ban wireless companies from engaging in unreasonable discrimination, but does prevent them from blocking sites. It's not clear whether the agency will view charging consumers more to access certain sites and services as equivalent to blocking the material.

The consumer groups contend that governmental approval of MetroPCS's pricing will send the signal to other wireless companies that they, too, can offer plans that block certain sites or applications. "If MetroPCS's violations are left unchecked, Verizon, AT&T, and other carriers may well follow suit," the groups argue. "And these discriminatory practices will be surpassed by far worse: Providers of policy control and deep packet inspection equipment are currently marketing technology to mobile broadband providers that would enable highly application-specific blocking and pricing behavior."

MetroPCS did not respond to Online Media Daily's request for comment.

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