T-Mobile, Airlines Poised for FCC Win in Fight with Massport
The FCC likely will hand T-Mobile, other wireless carriers and airlines a victory over the Mass. Port Authority (Massport) on a Massport demand that Continental Airline yank a Wi-Fi antenna from its frequent flyer lounge at Boston- Logan International Airport. Sources involved in the fight said Wed. the order has big implications for Wi-Fi’s future. Continental wants to offer customers free Wi-Fi service, competing with Massport’s $7.95-a-day service (CD June 5 p4).
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Chmn. Martin this week began to circulate an order that addresses a Continental claim that Massport’s attempted lease restrictions are preempted by FCC Over-the-Air Reception Devices (OTARD) rules. The order, to be voted on circulation, hasn’t been slated for the Sept. agenda meeting.
“This is an extremely important case for residential and commercial wireless broadband,” said Harold Feld, senior vp of the Media Access Project: “Most of the people who are serviced by community wireless networks are renters… If the landlord has the ability to prevent you from using a Part 15 system we have the same problem as with inside wiring where the incumbent can cut a deal with the landlord to have an exclusive right to offer a service and there goes competition.”
“What’s at stake is is Wi-Fi going to continue to operate the way we think of it and expect it to… as opposed to giving the person who may hold the deed to the property the right to decide whether you can or cannot use Wi-Fi,” a regulatory source said: “It matters for shopping malls. It matters for Starbucks.”
Continental sought a ruling from FCC last year, after Massport ordered it and American Airlines to shut down Logan lounge Wi-Fi hubs (CD Sept 30 2005 p7). The authority also ordered Delta Air Lines not to go live with a planned Wi-Fi service. CTIA, T-Mobile, the Air Transport Assn. of America, American Airlines, the Enterprise Wireless Alliance, United Airlines and UPS are among those urging the FCC to find for Continental. Massport claims it needs to control radio transmissions to protect passenger safety.
If the outcome takes the expected form, it could be a big win for T-Mobile and the airlines, said Jessica Zufolo, analyst with Medley Global Advisors, noting that the order seems to have “a lot of support… This decision is very positive for the wireless carriers who want to promote more broadband service and broadband access in public locations. It’s very good for T-Mobile since they offer Wi-Fi hotspots in a lot of locations.”
The decision could alter the Wi-Fi access model at U.S. airports and perhaps those abroad, Zufolo said: “This would just eliminate another profit center for airports. But it’s great for the airlines.”
The FCC could agree the OTARD rules preempt the lease restrictions, setting a broad precedent, or the order could be more tightly constructed, said a lawyer who has done work in support of Continental: “It depends on the wording, as so many of these things do… The Commission is extremely serious about promoting broadband wireless applications.” The order poses tough questions, he said: “It certainly gave the Commission pause and it has taken the Commission more than a year to rule on what should have been a fairly straightforward issue.”