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Monday, September 28, 2009 11:34 AM/EST

AT&T is Right: Google Shouldn't Get a Pass for Google Voice

When Google points at phone carriers such as Verizon and AT&T and complains they are blocking access to applications, content and services, we tend to listen. Look, it's a bird, it's a plane... No, it's Google, swooping in as defenders of the Internet faithful.

We as a nation are so, so tired of Ma Bell and its descendants holding us hostage, first on landlines, and now on wireless devices. We've come to despise phone carriers and hold them up as the pinnacles of greed and what is wrong with Corporate America. Phone carriers bad; Web service providers good.

No surprise, then, in the backlash against AT&T for arguing that Google is getting away with some of the same things carriers are explicitly denied in network neutrality principles that promote competition among providers of networks, applications, services and content.

As I wrote Sept. 26, AT&T Sept. 25 sent a letter to the Federal Communications Commission protesting Google's blocking of telephone calls from consumers who use its Google Voice service to call phone numbers with inflated access charges in certain rural areas.

AT&T argued that by blocking these calls, Google reduces its access expenses, giving it an advantage phone carriers are prevented from enjoying and thus skewering the competition principles in U.S. network neutrality laws.

Google Voice is not a phone service in the grand tradition of those provided by AT&T, Verizon, et al. It does not span endpoint to endpoint. You cannot pick up your landline or wireless phone and directly call your mom's landline or mobile phone and have her pick up.

So, what is Google Voice? Google Voice is a Web-based phone management service the search engine offers to let users funnel all of their phone calls via one new number to work, home and mobile phones.

I've used Google Voice. It's a fine service, and while it dallies in the realm of phone services, it does not go the last mile, which is why Google's telecom lawyer Richard Whitt argued that Google Voice is a free Internet application and is not subject to common carrier laws.

Moreover, because Google Voice does not enable users to call directly from one phone to the next--users need an existing landline or mobile phone to use it--the application is not intended to be a replacement for traditional phone services. Finally, he said Google Voice is currently invitation-only, serving a limited number of users. Whitt wrote:

The FCC's open Internet principles apply only to the behavior of broadband carriers--not the creators of Web-based software applications. Even though the FCC does not have jurisdiction over how software applications function, AT&T apparently wants to use the regulatory process to undermine Web-based competition and innovation.

Something doesn't feel right about that. Whitt isn't defending the fact that Google Voice blocks calls, which he admitted to earlier in his post. He basically said, hey, we're not a phone carrier. There aren't laws forbidding us from doing these things, so don't get mad at us because the rules don't apply to us. That reads like classic misdirection.

But AT&T claims that even if Google Voice is a Web app, Google would still be subject to the FCC's Internet Policy Statement, whose fourth principle states that "consumers are entitled to competition among network providers, application and service providers, and content providers." Whitt doesn't challenge that.

Perhaps the rules should be amended so that Web applications like Google Voice can't get the advantages phone carriers are denied. We spend so much time worrying about how carriers are getting over on us, that maybe it's time we looked at how Google could be sneaking in the back door.

Google is really splitting hairs with Google Voice when it should be accorded the same treatment as a phone service. Why should Google Voice get a pass just because it doesn't connect the last mile in phone service? In many other ways, Google Voice emulates phone services, as AT&T noted:

Google Voice includes a calling platform that offers unified communications capabilities and a domestic/international audio bridging telecommunications service that, with the assistance of a local exchange carrier known as Bandwidth.com, provides the IP-in-the-middle connection for calls between traditional landline and/or wireless telephones.

Google can't have it both ways. It can't shout open access from the rooftops and then be above reproach for blocking calls the phone carriers are prohibited from blocking. Google is craftily offering voice services as a Web application unfettered by rules and regulations that apply to broadband carriers.

Whitt's post rubbed carriers' noses in the gray areas that free it to do what it wants. Don't shrug your shoulders and smugly act like you can get away with a practice just because you don't fall under the domain of regulations that fail to keep up with the pace of innovation in this country.

I am so in the minority here! Believe me, I recognize it. Many of you left comments castigating AT&T as the root of all evil.

The first comment from Fred Richards notes:

AT&T is an infrastructure provider. Google is a content provider. AT&T wants control of content because they control the infrastructure. The internet does not work like this. If AT&T gets their way, they will make many many things artificially scarce, to artificially inflate prices. They are really, really grasping for straws in this argument.

Unbound wrote:

Didn't AT&T claim innocence just a few weeks ago regarding the Google app running on the iPhone? This is nothing more than a power play by an aging giant that was too slow to capitalize on the new internet market. I do like the showmanship though...

That sparks another idea: Perhaps AT&T did this to score points with Apple, a little tit-for-tat gamesmanship.

Pattycake noted:

AT&T charges for their services to make a profit. The Google service is free of charge. Google is not taking anyone's money and then restricting a customer unfairly. If anyone objects to any restrictions placed on something they get for FREE, they can move to a traditional commercial product that they must pay for. As technology progressed to provide huge cost reductions for telephony infrastructure, telcos continued to charge high rates to greatly enhance their profits instead of delivering this cost savings to the consumer. AT&T has always been one of the biggest eye-gougers in that respect. They'll attack anything that threatens their predatory company policies.

I think this misses the issue and raises another one. Does "free" mean Web services providers should be exempt from competition regulations? Then perhaps the FCC should account for free, too.

Here's the rub of your comments: AT&T is a big, greedy corporate machine, a venerable old greedy gobbler of green from user data fees. The greedy, lone Apple iPhone carrier trying to thwart Google because they don't like its stance on network neutrality. In fact, most carriers are reviled because they are constantly resisting net neutrality. Also, lots of people dislike AT&T because of the shaky service.

Google is outflanking an outdated system that needs to evolve to account for Web applications. I realize FCC Chairman Julius Genachowski is reworking net neut. I won't get mad at Google, nor will I stop using Google Voice, but Google should have kept its mouth shut on this one. Whitt's blog post only underscored how unlevel the playing field is in net neutrality.

We shouldn't let Google get away with practices we spend so much time correcting carriers. It's not the method that matters, it's the practice. No one should be allowed to block calls, or everyone should.

Google is just giving carriers ammunition, and possibly, undermining its own arguments about fair competition in network neutrality.

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Comments (8)

Otto :

Sorry, but no. AT&T is not right, and Google is. Why? Because Google really, really, is not a phone service.

Think of it this way:

- A phone service provides people with a phone line. Google doesn't do that.
- A phone service provides people with a long-distance plan, perhaps. Google doesn't do that either.

Google does none of the major things a phone service does. They use existing phone services and provide added features on top of them. Ringing to more than one phone line. Voicemail. Voicemail transcription. SMS Text services. And so forth.

Yes, they do offer a dial-out capability. But anybody can do that. My company has a PBX. We have our own three digit prefix from the local telco access point. We have 1000 numbers. I can pick up the phone and dial a number in the local area code and somebody located in our Mexico office will pick up the phone. Are we a phone company? Are we even a phone service? No, we buy these services from the local phone company, and then route the actual local calls over our internal network instead. Outgoing calls dial through our main connections here at the corporate office.

And I guarantee you that we block some of those extra charge prefixes as well.

A carrier can be prohibited from blocking calls because that is their primary function: to carry the calls. That's what you are paying them to do.

I don't pay Google to connect me to other phones. I "pay" them for the added services, or to connect me to voice-over-internet services, or what have you.

That is the difference.

Clint Boulton Author Profile Page:

Otto:

This is the best framing of this argument I've seen yet, and your example makes sense. I don't disagree with the finer points about what makes and what doesn't make a phone service. It does however, seem like just another argument for limiting carriers, which I've already noted are massively regulated by the FCC as it is. "Free" has once again become a license to anything. Google is exploiting it.

Craig :

I think Otto misses the technology on how Google provides the service and what makes them a phone service. Google servers "receive" the call, and then look at the rules for disposition. Their server then "bridges" the call by calling the disposition phone number, and initiating a connection. This "connection" may be facilitated by some carrier facilities (some carriers support having a call "bridged" within their network if they own both endpoints), however in other cases the Google servers will need to bridge the call (backhauling it over IP to somewhere "close" to the other party then dumping it out to a carrier for "the last mile"). There was an interesting technology overview of this up when GrandCentral was still GrandCentral

So the picture painted by Otto isn't correct in that Google isn't just providing "voicemail" and "ring my phone" services, but rather is fully in the call delivery business, just like a carrier...

Craig :

This is an interesting reaction by Google as it shows a weakness in the "advertising-based cost recovery" model for things that have a variable cost to deliver (assuming that the ad-based model is their "end target" model). Other "call carriers" such as Vonage have a flat "free LD within the US", not a "free LD within the US, unless you're calling somewhere expensive". For other classes of calls (900 numbers or other fee per call #) then they have a way to bill that back to the customer.

Perhaps a "premium" service for a few $ a month is the better approach for them as they've done with Google Apps...

Sam :

My understanding is that Google Voice is not VOIP, but land line transmission.

If my understanding is correct, then screw Google and their wanting to pay nothing.

EPoe :

Craig is right they act as a carrier in some of the functionality.

Here is the other shoe that drops - if Google can decide who they connect to and who they don't for whatever BS reason then ATT should not have to connect to the numbers Google Voice user get from Google because of the same BS reason

KRITIK1 :

Googles explanation seems more convincing than AT&T. I expect more from both parties to give specific examples. Dish it out, thats the American Way.

About your Comment,
"But AT&T claims that even if Google Voice is a Web app, Google would still be subject to the FCC's Internet Policy Statement, whose fourth principle states that "consumers are entitled to competition among network providers, application and service providers, and content providers."
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A: Yes, Consumers are entitled to be regulated and protected from predators, by enabling ~competition~., thus attempting to be more fair. but how much more "competition, fair, and protection" do you need, when you get a consumer max-advantage of free? That cuts out all the greedy Phone companies. No wonder, they are in uproar. You don't need the FCC to regulate anymore, to protect the public. The public was made happy by google, that in turn flipped off the greedy phone companies, busy and engaged in a cha-cha-dance with the FCC.
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"Perhaps the rules should be amended so that Web applications like Google Voice can't get the advantages phone carriers are denied."
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A: The rules are only necessary to protect the public. no need to amend the rules, to now go 180 degrees and protect the Phone Companies from the non-paying public and google as a free services provider.
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"Google is really splitting hairs with Google Voice when it should be accorded the same treatment as a phone service. Why should Google Voice get a pass just because it doesn't connect the last mile in phone service?"
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A: We'll explain it to you again:
Google Voice should NOT be accorded the same treatment as a phone service, because Phone Service has power to take money from people, and needs regulation. Google Voice is Free and you can take it or Leave it: = Freedom of Choice.
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"We shouldn't let Google get away with practices we spend so much time correcting carriers."

A: Yes, you should let google get away with these practices, because google has managed to correct with technology, what the FCC was unable to correct with regulation.: The blatant extortion of the American People by the Phone Companies.
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Google Voice brings to the people the freedom of choice. If you don't like it, don't use it. Go back and fiddle with your AT&T account. :-)
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"It's not the method that matters, it's the practice. No one should be allowed to block calls, or everyone should."
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A: Yes, that could be agreed to, if you make everyone equal and the FCC orders AT&T to also provide their call routing and management services for free. Then, the playing field is equal, and you can stop regulating.


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