Report links wireless Carterfone to higher prices

Creating a wireless Carterfone to regulate how mobile carriers bundle handsets and services won't save consumers a dime, according to a report issued by the Phoenix Center. On the contrary, "the pricing implications of wireless Carterfone are about as anti-consumer as you can get," the report said.

The Carterfone regulation was implemented in the '60s to prevent a Bell System monopoly where consumers were required to use only Bell System phones. The rules for landline phones were lifted in the '80s and '90s but are being considered again for wireless.

"It is ironic that proponents of wireless Carterfone tout their rules as being 'pro-consumer,' because our analysis shows that such rules would likely drive up the cost of equipment with little, if any reduction in wireless service prices," said Lawrence Spiwak, president of the Phoenix Center and the report's co-author.

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