Verizon's Google Wallet Snub May Violate C-Block Auction Rules
Dec 7, 2011, 11:57 AM by Eric M. Zeman
The Free Press today charged that Verizon Wireless's refusal to allow the Google Wallet application on the Samsung Galaxy Nexus may violate the terms and conditions set by the Federal Communications Commission regarding the 700MHz C-block spectrum that Verizon won in an auction several years ago. The FCC added terms to the auction that were meant to prevent winners from "denying, limiting, or restricing the ability of their customers to use the devices and applications of their choice." Free Press attorney Matt Wood said, "We think this could very well be a violation of the C-block conditions. When you have a powerful network operator, it can wield a lot of influence. But Google Wallet should be allowed to compete with Verizon." Earlier this week Google said that Verizon asked it not to put Google Wallet on the Galaxy Nexus. Verizon Wireless later attempted to explain the decision, saying that the application "needs to be integrated into a new, secure and proprietary hardware element in our phones." Google Wallet, which uses near-field communications in coordination with Google's software, permits users to make mobile payments with their smartphone. Verizon Wireless, along with AT&T and T-Mobile USA, are preparing to launch a competing service called Isis next year.
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