Google + AT&T = Hypocrisy times two

Google and AT&T are in the midst of one of the nastiest public battles in recent memory, with each accusing the other of unfair business practices, and the FCC launching investigations of both companies. It's hard to know who's more hypocritical in this fight, Google or AT&T. I'd call it a toss-up -- both companies are flat-out wrong.

The latest dust-up concerns the way that Google Voice blocks access to certain phone numbers. Google Voice is a free Web application, designed to unify all of your communications. AT&T has complained to the FCC that Google blocks calls to phone numbers in a number of rural communities, because Google doesn't want to have to pay the access fees it would have to pay if the calls went through. AT&T accurately points out that AT&T isn't allows to block calls in this way, and Google shouldn't be allowed to, either.

The IDG News Service reports that Robert Quinn, AT&T's senior vice president for federal regulatory affair, wrote to the FCC:

"Numerous press reports indicate that Google is systematically blocking telephone calls from consumers that use Google Voice to call telephone numbers in certain rural communities. By blocking these calls, Google is able to reduce its access expenses. Other providers, including those with which Google Voice competes, are banned from call blocking [by the FCC]."

AT&T complains that Google has long argued for net neutrality -- and yet, by blocking rural access, it's violating one of the most basic principles of net neutrality.

The FCC appears to agree there may well be a problem, because it's begun an investigation whether Google is violating the law by doing this. The FCC sent a letter to Google about it on Friday, requesting more information. According to the Associated Press, "the FCC is asking Google to explain how its Voice service works, whether it blocks calls to certain numbers and whether it informs users that it does so. "

AT&T is clearly right here. Google wants it both ways. It wants net neutrality...except when it doesn't. And when it doesn't want it is when it affects the company's bottom line. Richard Whitt, Google's telecom and media counsel wrote in his blog that:

The reason we restrict calls to certain local phone carriers' numbers is simple. Not only do they charge exorbitant termination rates for calls, but they also partner with adult sex chat lines and "free" conference calling centers to drive high volumes of traffic. This practice has been called "access stimulation" or "traffic pumping" (clearly by someone with a sense of humor). Google Voice is a free application and we want to keep it that way for all our users -- which we could not afford to do if we paid these ludicrously high charges.

But Google can't have it both ways. It can't argue for net neutrality, except when that means that it has to pay fees it doesn't want to pay. The company has to build the cost of those calls into its business plan -- in essence the same thing that it's asking AT&T and other service providers to do when building their high-speed networks for Internet access.

AT&T is equally culpable and guilty of hypocrisy. AT&T has been the most vocal critic of network neutrality, and now it's complaining because Google is doing exactly what AT&T wishes it could do. And, in fact, the FCC has launched an investigation of why Apple won't allow a Google Voice app to run on the iPhone -- and, of course, the iPhone can only be used on AT&T's network.

This has turned into one of the uglier fights in recent years. I can't remember another instance in which two companies have resorted to such blatant hypocrisy. Let's hope the FCC can straighten them both out.