NEW YORK, NY – After months of controversy surrounding wireless companies, the Federal Communications Commission voted unanimously on Thursday to launch a wide-ranging probe of the wireless industry.

"We are transitioning from a voice-centric world to a world of ubiquitous, mobile Internet access," said FCC Chairman Julius Genachowski. "This transition promises to increase the pace of innovation and investment, but only if we have an open and competitive marketplace that gives every great idea a chance to make its way to consumers so that the best products or services win."

The investigation, which could pave the way for new regulations, will encompass a variety of matters, including spectrum availability, wireless networks, devices, applications, and business practices. In addition, the FCC said it's seeking comments about "how the public has used wireless services and technology to solve real-world problems in areas such as health care, energy, education, and public safety."

The agency's probe comes as regulators and advocates have increasingly challenged some wireless practices. Earlier this summer, four U.S. senators publicly questioned whether exclusivity deals -- such as the one tying the iPhone to AT&T -- are unfair to consumers. Also, last month the FCC sought answers from Apple, AT&T and Google about an apparent decision to block Google Voice from the iPhone. Google Voice would have allowed iPhone users to send free SMS messages and make cheap international phone calls.

Meanwhile, broadband advocacy group Free Press recently urged the FCC to specify that neutrality rules apply to wireless networks. The group argues that consumers should be free to use any lawful applications on wireless networks, and has called for an investigation into Apple's decision to disallow a Skype VoIP app for the iPhone that would have worked on the 3G network. Instead, the approved app works only on the Wi-Fi network.

At least one commissioner, Michael Copps, indicated on Thursday that he's open to Free Press's argument on that point. "The freedom to choose devices and applications is, I believe, good for consumers and good for entrepreneurs, too."

Gigi Sohn, president and co-founder of broadband advocacy group Public Knowledge, praised the FCC's decision to investigate. "The Commission took exactly the right path today when it voted to look at all aspects of competition in the wireless industry," she said in a statement. "For too long, the appearance of competition among a few carriers has masked underlying anti-competitive industry practices ranging from consumer contracts to roaming agreements."

Copyright 2009 MediaPost Communications. All rights reserved. From http://www.mediapost.com. By Wendy Davis.
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