With Sprint and Comcast cheering (and Verizon booing), the Federal Communications Commission has issued rules requiring commercial mobile broadband providers to provide data roaming to other carriers "on commercially reasonable terms and conditions."

The vote was three to two in favor of the decision.

"The evidence shows that mobile providers must be able to offer nationwide voice and data plans to have any chance of competing in today's market," commented FCC Chair Julius Genachowski at today's Open Commission meeting. He continued:

Yet the record evidence supplied by carriers in the market shows that roaming deals simply are not being widely offered on commercially reasonable terms. On the contrary, the record makes clear that some providers have refused to negotiate 3G or 4G data roaming agreements, have created long delays, or have taken other steps to impede competition.

Rejected out of hand

Inter-carrier voice roaming connectivity is already a requirement, but smaller, rural carriers have long complained of running into a brick wall when it comes to cutting data roaming agreements with larger mobile operators. Last year, a coalition of telecom co-ops wrote to the FCC protesting that even their requests for discussions "are many times rejected out of hand, with a citation to the lack of a data roaming requirement in the Commission's rules."

"This trend has increased as the mobile wireless industry has begun to transition to 3G wireless services," the statement warned. "Thus, absent immediate Commission action, many rural consumers' access to these beneficial services will remain limited."

The full order detailing the data rules hasn't been released, but the gist includes the "commercially reasonable terms" requirement, and a provision allowing carriers to file formal or informal complaints about another carrier's behavior.

The Commission also reserves the right to roll out "baseball"-style arbitration on behalf of a dispute. In this scenario, two parties submit their competing offers to a third-party mediator. The arbitrator then picks one of the proposals.

But, Genachowski adds, this isn't price regulation: "We have avoided, as we did unanimously in the voice roaming context, regulating rates for data roaming agreements, instead leaving it to the parties to set their terms."

Congratulations, or not

Carriers responded predictably to today's announcement. Providers that stand to benefit from data roaming cheered the move. The big carriers that will be called upon to offer connectivity weren't so happy.

Sprint, the nation's third largest carrier, praised the decision. "The FCC must be congratulated for taking this action despite the opposition of the two largest US wireless carriers who have lobbied against this pro-consumer, pro-competitive item," its press statement declared. "With AT&T’s proposed acquisition of T-Mobile and the corresponding threat it poses to continued wireless competition, it is absolutely critical that the FCC take steps to promote competition and level the playing field."

We found no protest against the heavy hand of government in Comcast's response.

"To compete effectively in the wireless space, new entrants must be able to provide nationwide service from the start, and roaming will be a critical component of that ability," declared Comcast Vice President David Cohen. "And sensible data roaming policies will catalyze further investment in mobile broadband networks, helping to bring us closer to President Obama's vision for reaching 98 percent of Americans with high-speed wireless networks."

Verizon, however, was quite disappointed in the decision. The wireless giant's commentary noted that it has entered into over 40 data roaming arrangement with its competitors. It called the FCC Order a "new level of unwarranted government intervention in the wireless marketplace."

By forcing carriers that have invested in wireless infrastructure to make those networks available to competitors that avoid this investment, at a price ultimately determined by the FCC, today's order discourages network investment in less profitable areas. That is directly contrary to the interests of rural America and the development of facilities-based competition and potential job creation. Therefore, it is a defeat for both consumers and the innovation fostered by true competition.

Illegal bootstrapping

Ditto, declared the FCC's Republican minority. Commissioner Robert McDowell accused the agency of imposing common carrier rules on wireless Internet carriers, thus exceeding the agency's authority.

"Moreover, in crafting a new rule for complaints by bootstrapping on to the complaint procedures that pertain to common carriers, the majority eliminates all of the commercial flexibility granted to the providers," McDowell warned.

McDowell's colleague Meredith Attwell Baker agreed with this analysis, but called for carriers to cooperate on data roaming.

"With or without the 'regulatory backstop' envisioned in this order, it is ultimately incumbent upon our nation’s mobile carriers to work together to develop the data roaming environment that meets the needs and expectations of each of us as we increasingly come to rely upon mobile data for all our communication needs," Baker declared.

As for Democrat Michael Copps, he opined that the order did not go far enough.

"I would have supported an item that gave carriers the right to negotiate roaming arrangements at 'just and reasonable' rates as opposed to the 'commercially reasonable' standard we adopt here," Copps wrote. "I am confident, however, that vigorous application of today’s order can and should lead to much the same result—ensuring that consumers, no matter where they live or what carrier they choose, can use mobile technology to the fullest extent possible."