After years of claims that in-cabin wireless use would risk calamity, the airlines now want the public to believe any wireless access regulation--and the 
failure to make timely deregulation-- results from government inflexibility and 
inertia.  Why the change of strategy?  
The airlines want to "monetize" wireless access making it another profit center along with checked baggage and snacks. But to fully do so they need to undo several decades of claims that wireless handset use would cause--or at least risk--harmful interference with air traffic control communications and other essential avionics.
The airlines want to "monetize" wireless access making it another profit center along with checked baggage and snacks. But to fully do so they need to undo several decades of claims that wireless handset use would cause--or at least risk--harmful interference with air traffic control communications and other essential avionics.
    The restrictive FAA/FCC regulations resulted from active 
airline participation with a different rent seeking strategy.  The airlines' motivation did not solely 
stem from concern about consumer welfare.  Instead they wanted to protect their 
Airfone monopoly deal with GTE and later BellAtlantic/Verizon.
 
    Over time wireless has migrated from voice/text only to a vast array of 
data and applications.  The airlines now need to refute the avionics harm rationale they 
vigorously advocated in the first place.  True to form, sponsored engineers and 
now economists are retained to claim the need for immediate deregulation of "job 
killing" regulations.  These researchers join with more clearly defined 
stakeholders to vilify regulatory inertia, etc.  
 
    So now the avionics harm risk does not exist, if it ever did.  
Smartphones always have had the ability to reduce transmission power to the 
lowest wattage needed making it highly unlikely that in cabin interference could 
result.  Also the airlines now have a transmission routing scheme, albeit overly 
costly, that eliminates the avionics risk by locating the necessary higher 
wattage link to an outside the cabin antenna for ground tower, or satellite 
access.
    My takeaway from this case study: it's easy to blame government 
regulators as inflexible.  But the political process forces these regulators to 
accommodate well-financed stakeholders like the airlines.  Belatedly the 
airlines have come to understand that wireless can become a lucrative, new 
revenue center.  So they launch a "public interest" campaign to persuade the 
FAA/FCC to remove now unnecessary, inefficient and costly regulations 
they helped create.  Sadly the true public interest has 
suffered for the decades of unnecessary handset restrictions.
 
    Also consider this irony: back on earth the wireless carriers have 
spent billions convincing Congress and the FCC that subscribers should not 
have certain access freedoms, including the "right" to unblock a fully paid for 
handset.  The wireless carriers claim that subscribers have no legal right to 
use a handset to access a competitor even if the subscriber no longer is bound  
by a service agreement and even after the carrier has recouped any handset 
subsidy it offered the subscriber.  Some subscribers have resorted to "illegal" 
self-help strategies instead of asserting their right of ownership.
    I marvel at how wireless carriers can regulate and constrict individual 
economic freedoms, including the right to control fully owned property like 
handsets, including ones bought on an installment basis during a two year 
subscription term.  The FCC has a longstanding Carterfone policy that 
would prohibit such consumer restraints on corded handsets.  Sadly the FCC has 
bought bogus concerns about radio spectrum harm raised by the wireless carriers 
who benefit from the restrictions they impose in subscription agreements.

 
 

1 comment:
Do you trust a sponsored engineer more than a sponsored economist?
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