Verizon challenges FCC's new Internet rules

By Jasmin Melvin and Sinead Carew

WASHINGTON/NEW YORK | Thu Jan 20, 2011 7:13pm EST

WASHINGTON/NEW YORK (Reuters) - Verizon Communications took the Federal Communications Commission to court on Thursday over its recently issued Internet traffic rules, arguing the regulator had overstepped its authority.

The filing with the U.S. Court of Appeals for the District of Columbia fulfilled the predictions of many industry analysts that the FCC's split vote last month to impose the rules would be swiftly challenged.

Medley Global Advisors analyst Jeffrey Silva said there was a "reasonable chance" the court would strike down the rules.

The same court ruled last year that the FCC lacked the authority to stop Comcast Corp from blocking bandwidth-hogging applications on its broadband network, spurring the agency's most recent rulemaking effort.

Verizon said it was concerned by the FCC's assertion of broad authority to make new regulations on broadband Internet networks.

"We believe this assertion of authority goes well beyond any authority provided by Congress, and creates uncertainty for the communications industry, innovators, investors and consumers," Verizon deputy general counsel Michael Glover said in a statement.

A senior FCC official said Verizon appeared to be premature in making its filing since the Internet rules have not even been published yet in the Federal Register.

The agency is confident the order is legally sound, said the FCC official, who spoke on condition he was not named.

In a 3-2 vote on December 21, the FCC adopted rules that prevent network operators from blocking lawful content but still let them ration access to their networks. The agency's two Republican members voted against the measure.

The rules gave wireless service providers more leeway in managing their networks but still forbade them from blocking access to websites or competing voice and video applications.

The action highlighted a huge divide between those who say the Internet should flourish without regulation and those who say the power of high-speed Internet providers to discriminate against competitors needs to be restrained.

Even though the FCC's Internet rules have not been formally published yet, a step that would put them into effect, Verizon's appeal argued that the rules would modify wireless airwave licenses it holds.

Verizon is majority owner of Verizon Wireless, the biggest U.S. mobile service.

Disputes over licenses must be filed within 30 days of the order's release, and are only heard in the D.C. circuit court.

(Reporting by Sinead Carew in New York and Jasmin Melvin in Washington D.C.; Editing by Tim Dobbyn)

Verizon Wireless to unveil iPhone Tuesday: source

A sign of Verizon Wireless is seen at its store in Westminster, Colorado April 26, 2009.

Credit: Reuters/Rick Wilking

NEW YORK | Sat Jan 8, 2011 6:54pm EST

NEW YORK (Reuters) - Verizon Wireless, the top U.S. mobile provider, plans on Tuesday to unveil a version of the Apple Inc iPhone for its service and will kick off sales of the device a few weeks later, a source told Reuters.

Verizon Wireless will offer the iPhone to its customers under its existing wireless service price plans, said the source, who asked not to be named as the plan has not yet been announced.

Apple and Verizon Wireless declined comment on Saturday.

Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc, will announce pricing for the device at an event to be held in New York on Tuesday.

The agreement between Verizon Wireless and Apple marks the end of AT&T's iPhone exclusivity. AT&T Inc, the No. 2 U.S. mobile service, has been the only operator to sell iPhone since it launched in 2007.

Since AT&T has been heavily dependent on iPhone for customer growth in the last few years, some investors have worried that it could face a mass exodus of subscribers once its bigger rival starts selling iPhone.

AT&T's reputation for network performance problems, particularly in cities such as New York and San Francisco, could exacerbate the problem.

But some analysts have said that the loss of customers will be tempered by the fact that most of AT&T's iPhone customers subscribe via family plans, which are trickier to exit as they involve more than one customer.

(Reporting by Sinead Carew; Editing by Xavier Briand)

Verizon to carry iPhone: source

A customer looks at an iPhone 4 at the Apple Store 5th Avenue in New York June 24, 2010.

Credit: Reuters/Eric Thayer

NEW YORK | Fri Jan 7, 2011 9:33pm EST

NEW YORK (Reuters) - Verizon Wireless will sell the iPhone, the Wall Street Journal reported on Friday, citing a person familiar with the matter.

There was no specific date for when Verizon would sell the phone in its stores, the paper reported on its website. The announcement will be made on Tuesday at an event in New York, WSJ said.

Verizon declined to comment. An Apple spokeswoman declined to comment.

Shares of Verizon rose 2.5 percent in after-hours trading on the New York Stock Exchange. Apple shares rose 0.6 percent in after-hours trading on the Nasdaq.

Verizon, Wireless, a joint venture between Verizon Communications and Vodafone Group Plc, delivered cryptic nontransferable invitations on Friday to an event to Tuesday's New York event.

The in-box invite to journalists was skimpy on details: "Join us as we share the latest news from Verizon Wireless."

AT&T Inc is currently the exclusive carrier of the iPhone.

On January 6, AT&T announced it will cut the price of its older iPhone model, the 3GS, to $49 from $99.

Apple's iPad is available through Verizon.

Earlier this week at the Consumer Electronics Show, the annual gadget extravaganza in Las Vegas, Verizon Wireless said it plans to have 10 new devices -- including four smartphones and new tablets -- on store shelves by midyear for its high speed wireless data service.

(Reporting by Liana B. Baker, Jennifer Saba, Gabriel Madway; Editing by Gary Hill and Gunna Dickson)