Carterfone decision

In the public switched wireline world, the debate over opening the network to devices, or terminal equipment, has a long and complex history. The long-debated issue of whether or not consumers would be permitted to attach their own equipment to the telephone network was largely resolved by the 1968 Carterfone Decision.58 This decision was issued by the FCC in response to a petition filed by Thomas Carter, an inventor, who developed a device, known as the Carterfone. The Carterfone enabled consumers to connect a two-way mobile radio system to the telephone network. In accordance with its long held policy, AT&T, the parent company of the Bell System, denied the attachment of the Carterfone to its telecommunications network citing concerns about the potential of foreign devices, i.e., non-Bell System devices, to harm the network. Given the Bell System’s status as the monopoly provider of telecommunications, the refusal to allow non-Bell System equipment to attach to the network, in effect, resulted in a de facto monopoly over devices as well as the transmission platform. The FCC, however, determined that the Carterfone device and other customer-supplied equipment could be attached to the public telephone network as long as the devices were “privately beneficial, but not publically harmful.” These rules on connection were later codified as Part 68 of the FCC’s rules.59 As a result, consumers are free to attach any equipment they desire to the public switched network, as long as it meets Part 68 standards. Some are pressing the FCC to apply Carterfone-type rules to the wireless network as well. However, the application of such rules may prove to be more difficult. Unlike the public switched telephone network, which is basically supported by a common technology, wireless networks are supported by a variety of different technologies. As the technologies that support wireless networks converge, the application of a Carterfone-type solution may become more feasible.