FCC to Verizon: You can’t block tethering apps, Verizon settles for $1.25M

Gigaom

Verizon(s vz)(s vod) customers will soon have the option of downloading Android(s goog) apps that let them turn their phone into a mobile hotspot —apps that Verizon blocked initially because it didn’t want customers circumventing its $20 a month mobile hot spot fee. The FCC has determined that nation’s largest wireless carrier was in the wrong in this situation because it had purchased spectrum back in 2008 that required Verizon to allow open access to its network.

Thus Verizon has settled with the FCC and is offering a $1.25 million payment to the U.S. Treasury as a result of the FCC’s consent decree on this issue. The FCC also is saying that Verizon cannot charge customers on tiered data plans the $20 a month tethering fee, but it can charge it for those customers who are on an unlimited data plan. However, Verizon will not actually have a way…

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