The AT&T/T-Mobile Fine Print

Anyone who has a service contract with AT&T knows that there are two parts: the advertisement and the fine print.  The advertisement promises all kinds of wonderful things. The fine print explains how AT&T really has no legal obligation to provide them, and you have no recourse if AT&T doesn’t live up to its terms. The ad has a little asterix (*), to let me know to look for the fine print. For example, AT&T recently offered me a free 4G phone*. *DISCLAIMER: Provided I sign up for a minimum $15 data plan, 4G is available in limited areas, and other restrictions apply. They also promise I can download amazing videos*, DISCLAIMER: *provided I don’t exceed my capacity cap, in which case I will pay lots more money. Etc.

Unsurprisingly, the AT&T/T-Mobile deal comes with its own set of fine print. AT&T and its allies make all kind of promises about how the deal will encourage mobile broadband and create jobs ‘n stuff, while the actual FCC filings have all kinds of wonderfully crafted (from a legal perspective) fine print that explains all the limitations on these promises. Alas, AT&T doesn’t do nearly as good a job with the helpful* for fine print on it’s advertisements for approving A&T/T-MO as it does on its regular advertisements. I want to especially point this out to all the state governors that have supported the merger based on the advertising implying that the mighty AT&T lion is going to go all Aslan and spread broadband and jobs after it devours the sickly gazelle that is T-Mobile.   Based on the fine print, you have as much chance of seeing rural broadband deployment and job creation as the average AT&T iPhone user in San Francisco has of connecting a call and enjoying “unlimited downloads”* (*subject to bandwidth cap, phases of the Moon, and wicked packet-intercepting gremlins).

Advertising matched with FCC filing fine print below . . .

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Sorry AT&T, Title II Would Not Require The FCC To Allow Paid Prioritization.

AT&T has raised a bit of buzz recently with claims from their policy folks that under Title II, AT&T could still do paid prioritization (aka “fast lanes,” “toll lanes,” or, as I like to call it in honor of the man who so clearly laid out the concept “Whitacre Tiering” — but that one sadly never caught on). The implication of these recent statements apparently being that (a) Title II is therefore sooooooo not worth it; and, (b) the demand by whacky-crazy-socialist-radicals to prohibit paid prioritization is just more whacky-crazy-radical-socialist stuff, so pay it no mind. One might ask, if so, why AT&T has invested so much money in demonizing Title II when it supposedly would require the FCC to allow paid prioritization, but I digress.

Instead, let’s play stupid fun lawyer games and try some legal analysis. Ooooooohhhh!!! I love that game! It makes me all nostalgic for a time when we actually filed pleading at the FCC and debated these issues before agencies in a public record rather then in blogs (which tells you how pathetically old I am). Besides, all kidding aside, debating actual law and precedent with with some of the other lawyer types willing to play law games is one of the few intellectual pleasures remaining to me in Policyland these days, given the way this usually degrades to blah blah Socialist blah blah. Heck, I may even see some substantive reply.

My short answer is that while Title II would allow the FCC to permit paid prioritization, in a non-discriminatory manner, it does not compel the FCC to permit paid prioritization. Further, while Title II would not require the FCC to prohibit paid prioritization, it would give the FCC authority to prohibit paid prioritization. Indeed, I first addressed this back when Genachowski announced his “3rd Way” proposal. At this point, the more results oriented can skip directly to the comments to tell me how socialist stupid I am, or describe how evil AT&T is (depending on your preference). Those interested in a little law and policy, see below . . .
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