UPDATE 1-FCC chairman to oppose Skype open-network petition

(Adds further background, quote from Kevin Martin and Democratic FCC commissioner)

LAS VEGAS, April 1 (Reuters) - Federal Communications Commission Chairman Kevin Martin said on Tuesday he was proposing to dismiss a petition from Web-based phone service Skype to force open wireless networks.

Martin said he would circulate a proposal among the four other FCC commissioners dismissing the petition which Skype, a unit of online auction leader eBay Inc (EBAY.O: Quote, Profile, Research, Stock Buzz), had filed a little over a year ago with the communications regulator.

"In light of the (wireless) industry's embrace of a more open wireless platform, it would be premature to adopt any other requirements across the industry," Martin said in prepared remarks at the annual U.S. wireless industry trade show in Las Vegas.

To cheers from the audience of mobile industry insiders, Martin said he was opposing the Skype petition because of a need to strike a balance between supporting innovation and investments in network infrastructure by telephone companies.

Skype has attracted hundreds of millions of users worldwide to its free or low-cost Web-based phone calling services. It relies on peer-to-peer technology that distributes network capacity among users signed on to the system.

At the center of Skype's petition are open-platform "Carterfone" requirements, named after a precedent-setting decision by the FCC in 1968, which forced the Bell telephone monopoly to open up and allow outside devices to run on formerly closed networks, as long as they did not cause damage to the system.

In recent years, the two largest wireless carriers, AT&T (T.N: Quote, Profile, Research, Stock Buzz) and Verizon Wireless, have agreed to abide by open-access principles.

Verizon Wireless is a joint venture of Verizon Communications Inc (VZ.N: Quote, Profile, Research, Stock Buzz) and Vodafone Group Plc (VOD.L: Quote, Profile, Research, Stock Buzz).