Verizon Pondering Court Challenge to Data Roaming Order

"We've seen this movie before and we've seen this movie on the wireline side,” Tauke said of data roaming: “It discourages the kind of competition which is really important for consumers over the long haul, and that is the investment driven by different infrastructure being deployed and developed across the country.”

As was the case with net neutrality, the FCC would “exceed the bounds” of the Communication Act in imposing a data roaming requirement, Tauke said. Verizon was quick to challenge the net neutrality order after it was approved by the commission last December. “Whenever the FCC substantially exceeds its authority on a very important order it would expect that that order would be challenged and it ought to be challenged,” he said.

The FCC should use its “bully pulpit” to encourage carriers to sign roaming agreements, but not impose rules, Tauke said. Verizon has signed about 40 data roaming agreements including several covering 3G data, he noted. “There are some other companies that have 3G networks that have not entered into data roaming agreements on 3G,” he said. “We have had 3G agreements for a long time. People keep telling us we're good actors in the space."

Verizon remains agnostic on the AT&T/T-Mobile merger, Tauke said. “We don’t have a position for it nor do we have a position against it,” Tauke said. “We do have concerns about the process that will be followed in the review.” Sprint Nextel, the other major wireless carrier, this week formally opposed the merger.

Congress and the FCC should continue the push to get more spectrum into play for wireless broadband, Tauke said. “A lot of progress has been made over he last year,” he said. “We know that with spectrum you have to plan ahead because it takes a lot of time from when you start until you actually get spectrum into the marketplace.” Verizon is “relatively rich in spectrum” with its 700 and 800 MHz holdings, Tauke said. “We don’t have an immediate spectrum crunch generally,” he said. “We don’t have the immediate needs that some of the other carriers do, but this doesn’t take long to change."

Verizon does not oppose LightSquared’s proposal for a national wholesale wireless network, as long as interference concerns are addressed, Tauke said. He denied that Verizon has tried to keep the company out of the market. “Competition is good for everyone,” he said. “It’s good for us. It’s good for the industry. It’s good for consumers. … How much of the market can they take? Who knows? If they're really good they can take big chunks."

MetroPCS, Leap and other competitors continue to push for a data roaming mandate while “simultaneously touting their growing competitive success,” Verizon said in an ex parte filing Thursday at the FCC. The record shows that proponents of data roaming rules are really seeking regulation of rates and terms for data roaming. “But oversight of rates and terms is classic common carriage regulation, which the law does not permit for wireless data services,” the filing said.

The FCC is on solid jurisdictional grounds in imposing data roaming rules, Sprint Nextel said in response to Tauke. “It’s disappointing that Verizon wants to stop consumers from accessing email, the Internet and other mobile broadband services wherever they may travel in the U.S.” Rural Cellular Association President Steve Berry said that “this represents a common sense approach in support of competitive connectivity -- and is not rate regulation or price setting.” -- Howard Buskirk