Why the US Mobile Phone Industry is a Horrible Model for the Internet

The advocacy group Free Press has filed a complaint with the FCC over Apple and AT&T's ban on the use of Skype on their network.

The money quote on this is from a typically clueless AT&T spokesman, "Customers are free to download and use the apps they want, but we have no obligation—nor should we have—to facilitate or subsidize our competitors' businesses."

It sounds reasonable, but what is really going on here is that AT&T is using monopoly power, it is the exclusive licensee for the iPhone in the US, and it's customers incur hefty roaming charges on other networks, in order to lock a potential competitor out on a service that their customers have paid for.

This is why network neutrality is necessary, and it is yet another example as to how the US privatized largely unregulated telco markets do not serve the consumer: it creates businesses whose model is largely predicated on creating, and maintaining, a monopoly.