Tethering is Lawful, No Fee Can be Levied, FCC Rules

A new Federal Communications Commission consent decree with Verizon Communications settles a dispute about whether it is lawful for Verizon to charge a special fee for its users who want to use their Android smart phones as personal hotspots, using some of its 700 MHz spectrum.


The FCC decision concludes that tethering is a lawful end user activity, and no mobile service provider has a right to block access to mobile apps that turn an Android smart phone into a personal Wi-Fi hotspot, based on provisions relating to the acquisition by Verizon of 700 MHz spectrum.


The rules do not seem to apply to Sprint, T-Mobile USA or AT&T, though, as a practical matter, AT&T smart phone users, for example, can use their Android devices as personal hotspots, without additional charge, if they buy certain mobile data plans. Sprint continues to levy a discrete fee for the personal hotspot feature. 


The FCC also said that Verizon can charge an additional tethering fee for those customers who are on an unlimited data plan.