FCC: Verizon Can't Charge For Tethering

Verizon has been fined $1.25M for charging customers who used a third-party app to evade their tethering fee.

The company had asked Google to remove "tethering" apps from its Android Market. Tethering allows users to plug a smartphone into a computer and use the phone's cellular connection to power the computer's Internet access. The apps circumvented Verizon's own tethering service, which costs $20 per month. In 2008, when Verizon bought the licenses to the wireless frequencies that it now uses for its 4G service, the FCC imposed rules barring the company from restricting its customers' ability to use the devices or apps of their choosing. The rules only apply to Verizon and not other wireless carriers.

Tethering fees were a frequent topic at this year's Netroots as the venue's wifi was often unreliable.