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Lawmakers debate iPhone-like exclusivity deals, wireless contract disputes
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Lawmakers debated whether or not states should continue to have the right to resolve disputes between customers and wireless carriers, exclusivity deals for devices, roaming rules and other issues as they look to define a new regulatory framework for the industry.
At a hearing of the House Energy and Commerce Telecommunications Subcommittee, several lawmakers voiced support for a measure that would allow a federal standard to pre-empt state regulations for resolving disputes between customers and wireless carriers over their contracts.
Lobbyists for the wireless industry are in favor of such a move because, they argue, voice calls and data transfers from cell phones by their very nature cross state lines. Rick Boucher (D-Va.), the chairman of the subcommittee, said states should continue their role in resolving the disputes.
Lawmakers also voiced concerns about exclusivity agreements for hot new devices, such as the one AT&T Mobility has with Apple for the iPhone. "I continue to question why a consumer is constrained" by such exclusivity arrangements, said Rep. John Dingell (D-Mich.).
The lawmakers also debated whether to require wireless carriers' roaming agreements to cover mobile broadband data instead of just voice calls. Rep. Henry Waxman, who chairs the full committee, said that carriers that received federal funding should be required to offer roaming service to other companies "on a just and reasonable basis." Small carriers, such as Leap Wireless, argue that roaming agreements are one of the keys to their survival, and that larger providers such as AT&T and Verizon Wireless often make it difficult for smaller competitors to enter new markets by either charging them extremely high fees for the roaming agreement or denying them roaming access.
For more:
- see this Dow Jones Newswires article (sub. req.)
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AT&T's Stephenson eyes prolonging iPhone exclusivity, will refresh focus on wireless
FCC will not revise roaming rules
Roaming rules spark controversy
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Comments
Posted by DavidB | May 10, 2009 - 8:11am
Someone ask Mr. Dingell if he would also then like to force every carrier to offer "exclusive" duds? I'm sure the industry is littered with far more "exclusive" devices that didn't pan out as expected than there are one that did. This is gov't interference in way the market does not need.
Posted by Anonymous | June 18, 2009 - 6:01pm
Excuse the comedic repertoire of DavidB - You see the last part of the story. AT&T does every thing it can to take all the business away from competitors.This is why consumers and lawmakers are grumbling. Some consumers are upset about these exclusivity and locking of phones. I know carriers and regionals want to make money so I am in support of limited unlocking of phones. I know someone is going to bite my head off for saying that!!! They have to do this in order to stay in business and also be competitive....But, It sounds like AT&T and Verizon employ tactics to keep themselves ahead of the rest. We've known this for a long time...It is good that Congress is probably gonna rain on on their parade....soon!!!
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