BTW

Browse Issues

Browse the BusinessWeek Archive

Rich Tu

Story Tools

Mobile App Makers Hear Washington Calling

As smartphone apps proliferate, the FCC has sent out a signal that may be music to the ears of software developers trying to get to more mobile users. At an Aug. 27 hearing, the agency hinted at increased regulation of the $32 billion mobile data services market in which app makers offer everything from games and video to free or cheap over-the-Web calling services. One likely issue: whether wireless carriers limit these developers' access to consumers. For the first time, the FCC has asked app creators such as Google (GOOG), Skype (EBAY), and Vonage (VG)—not just wireless carriers like AT&T (T), Verizon Wireless (VZ), and Sprint Nextel (S)—to submit comments about the state of innovation and competition in the mobile market. The FCC "is asking the right questions," says Christopher Libertelli, a senior director at Skype. Both Google and Skype, which offer Web-calling apps, say some carriers thwart their access to users. Carriers have argued that certain video and Web-calling applications can strain network capacity. Referring to the FCC's call for comments, carrier trade group CTIA issued a statement saying it appreciates "the opportunity to respond."

—Olga Kharif