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Senators urge FCC to probe handset exclusivity deals
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A group of senators has asked to the FCC to review exclusivity agreements between wireless carriers and handset makers and assess whether or not such deals limit consumer choice.
"We ask that you examine this issue carefully and act expeditiously should you find that exclusivity agreements unfairly restrict consumer choice or adversely impact competition in the commercial wireless marketplace," the senators wrote in a letter to Michael Copps, the acting FCC chairman. The senators who signed the letter, dated June 15, include John Kerry (D-Mass.), chairman of the Senate Commerce Subcommittee on communications, technology and the Internet, Byron Dorgan (D-N.D.), Amy Klobuchar (D-Minn.) and Roger Wicker (R-Miss.).
The issue has gained steam in recent months. In May, the Rural Cellular Association, which represents 80 small and rural wireless carriers, filed a petition asking the FCC to investigate the matter. The group argued such deals pose serious challenges to smaller carriers unable to get access to exclusive handsets. Further, a coalition of public-interest groups just this week sent a letter to the Senate Commerce Committee in anticipation of hearings for two FCC nominees, urging that the committee address, among other issues, the connection between wireless devices and services.
Thus, the issue of exclusive handsets may well come up during the Senate Commerce Committee's hearing to consider the nomination of Julius Genachowski and Robert McDowell to the FCC.
For more:
- see this Reuters article
- see the release
Related Articles:
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Report: Apple talking to Verizon about iPhone
AT&T's Stephenson eyes prolonging iPhone exclusivity, will refresh focus on wireless
Comments
Posted by WilliamC | June 16, 2009 - 10:46am
This is a start!!! Thanks for acting Senators. How can two carriers get all the handsets while the other carriers and regionals have to hope and pray that they can get their hands on a particular handset??? The two titans are making competition extremely difficult for the other carriers to compete in my opinion. Either they suffer or these guys try to swallow them up. We want choice in American telecommunications. The way this exclusity is being doled out is harming carriers and helping a few bottom lines. Give every one a chance to land a handset in their column. Exclusivity contracts should be LIMITED to 2 YEARS!!! This sounds fair to me and would give another carrier or regional a chance to get the handset of their choice if it meets its network specifications i.e. EDGE, GSM, IDEN, EVDO REV A AND O AND 1XRTT AND CDMA ETC.......Nothing can be further from the truth!!!!
Posted by Anonymous | June 16, 2009 - 11:51am
As if there aren't more important issues for the government to be focusing on besides who gets what cell phone. Before you know it, we'll all be using the new "GC" wireless service: Government Cellular.
Posted by Anonymous | June 17, 2009 - 12:21pm
We will be using "Government Cellular" if the present Duopoly of Verizon and ATT are allowed to continue as they are in the present! Common sense should tell us all that competition fosters inovation and better quality service for all consumers!
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