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Cincinnati Bell: AT&T should give us its exclusive handsets
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The FCC should force AT&T to give small wireless carriers access to its exclusive handsets if it approves AT&T's $944 million proposed acquisition of Centennial Communications, Cincinnati Bell said in a filing.
In the filing, Cincinnati Bell said that AT&T's purchase of Centennial "will reduce smaller carriers' ability to compete in purchasing handsets in another, complementary way as well--it will deprive smaller carriers of an ally and consortium partner in buying arrangements." Cincinnati Bell said it was part of a consortium of carriers, which included Centennial, formed to get "relatively competitive prices and terms from a number of handset providers."
"Thus, AT&T's merger with Centennial will exacerbate the inequality in bargaining positions and make it even easier for AT&T to impose exclusivity requirements on handset manufacturers," the carrier said. As a remedy, the FCC should impose on AT&T's purchase of Centennial a condition that is "parallel" to an offer on handset exclusivity that Verizon Wireless made earlier this year.
In July, Verizon said it would give small wireless carriers--those with 500,000 or fewer subscribers--access to all of its exclusive devices from all of its handset partners six months after Verizon launches the phones. The Rural Cellular Association rebuffed the offer.
An AT&T spokeswoman did not immediately respond to a request for comment.
The Justice Department has approved AT&T's proposed acquisition of Centennial, but the FCC is still considering the deal. Meanwhile, the FCC is investigating handset exclusivity and wireless competition more broadly.
For more:
- see this Bloomberg article
- see this FCC filing
Related Articles:
Justice Department signs off on AT&T-Centennial deal
GOP FCC commissioners support handset exclusivity deals
FCC's Genachowski lays out concerns over exclusive handset deals
RCA carriers unsatisfied with Verizon's exclusivity offer
Verizon offers small carriers a deal on handset exclusivity
Comments
Posted by WilliamC | October 21, 2009 - 5:02pm
Smaller carriers keep the heat on THIS big BEHEMOTH. If you give up - AT&T AND VERIZON wins. Consolidation is inevitable. We can not stand by and let the FCC grant their every wish. It is not about them - It is about the health of all of the carriers. WHAT HAVE YOU DONE TO HELP YOUR CARRIER TODAY??? BUY A SERVICE OR PRODUCT. Wimax service, ringtones, apps, broadband cards, and upgrade in service, a new device, songs, games - this is what helps your cellular company stay in business. KEEP YOUR COMPANIES AFLOAT!!! HELP STRUGGLING CARRIERS - IF YOU CAN.........
Posted by Anonymous | October 22, 2009 - 6:01pm
I work in the wireless industry and I would much rather see the handset manufacturer open stores and sell thier own product. Let the wireless providers sell the service.
This would circumvent SOOOOOO many issues we deal with on a regular basis. An individual could then purchase the handset they prefer from the manufacturer the prefer and then choose the wireless company that will suit thier needs best. I am tired of dealing with customers upset about the way a phone functions.
You would be amazed how many people I have seen switch to Verizon or AT&T soley because their kids wanted "cool" phones. Not only did they switch but they paid more on their monthly service and experience far worse customer service than my small provider ever offered them!
This would FORCE the manufacturer to accept responsibility for poorly manufactured handsets. The customer could then take it to the store where they purchased it and have an actual technician assess the phone. I get tired of the whole "my phone is a POS" when it looks like it has been through war. Then they get mad when I want to charge them an insurance dedcutable!
If you truly want to support your small company and make the wireless market more competitive, fight for handset manufacturers to open their own stores and sell their own product and let the service providers do what they do best..... Provide service!
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