Verizon, T-Mobile & Alltel deny a VoIP company short code access for int. calls

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VoIP provider denied short-code access
VZW, T-Mobile USA and Alltel nix text message application

Rebtel, a Voice over Internet Protocol firm that offers low-cost international calling on mobile phones, said Verizon Wireless, Alltel Corp. and T-Mobile USA Inc. rejected requests for short codes for creating local numbers by text message.

“We believe Verizon’s rejection of our short-code campaign is an anti-competitive abuse of power, just like their rejection of NARAL Pro-Choice America’s campaign was interference with political speech and activism,” said Greg Spector, Rebtel’s spokesman. “Enough is enough. It’s time to do what’s right for the consumer—not Verizon’s profits.”

After initially rejecting NARAL’s request for a short code to enable the group to send text messages to supporters’ cellphones, Verizon Wireless promptly reversed course as part of a policy shift and granted the application.

Jeffrey Nelson, a Verizon Wireless spokesman, noted Rebtel’s short-code application was denied in May and that the firm did not appeal. Nelson said Verizon Wireless has a policy of rejecting short codes from companies that seek to compete with the No. 2 carrier, whether it be Rebtel or its traditional cellular competitors.

Rebtel said AT&T Mobility has not denied its application for a short code. But the outlook does not look good for Rebtel.

“While I can’t comment on this particular company and its services, I can tell you that our terms and conditions specifically prohibit the use of VoIP-type services on our wireless network,” said Mark Siegel, an AT&T Mobility spokesman.

Rebtel said it has not encountered such problems outside the U.S., where it said creating local numbers by text message is standard practice.

Alltel and T-Mobile USA did not immediately respond to requests for comment. However, Rebtel said Alltel’s rejection letter stated that the VoIP service “cannibalizes” their international rates and that T-Mobile USA responded it “will not participate in this campaign.” Rebel said Verizon Wireless’ rejection letter refused to acknowledge the legitimacy of the Stockholm-based firm’s international calling plan.

Sens. Byron Dorgan (D-N.D.) and Olympia Snowe (R-Maine) have asked Commerce Committee Chairman Daniel Inouye (D-Hawaii) to hold a hearing to examine discrimination against content and applications by telecom and cable companies and whether existing regulatory safeguards are sufficient. Inoyue has yet to say whether he will schedule a hearing.

VoIP provider denied short-code access - RCR Wireless News