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Wireless Carriers Accused of Antitrust Violations
phoneboy writes "From Wireless Consumers Alliance: A class-action lawsuit was filed on April 5 in the U.S. District Court for the Southern District of New York on behalf of wireless consumers seeking to end the control of the handset market by wireless carriers. Read the Antitrust Complaint. While the complaint is fairly short and easy to understand, a summary is in order: The carriers basically dictate required features to handset manufacturers. Phones are tied to specific carriers and cannot be moved between carriers. Carriers refuse to allow handsets on their network they didn't approve. Handset manufacturers thus cannot sell handsets that aren't approved by carriers because carriers will not allow them to be used. All of this rises costs for the consumer, making it difficult and more expensive to switch carriers, and unfairly restrains trade for both handsets and cellular services. As someone who recently tried subscribing to AT&T's new GSM service with an unlocked GSM phone (they didn't allow me to "activate" the service unless I bought one of their phones), I'll be watching this case very closely."
Bravo!
This is highly needed. I am a big fan of Nokia phones, to the point where I won't use any other brand of phone. Unfortunately, I signed up for access with Sprint PCS 2 years ago, and a little over a year ago I extended my contract (it won't be over until May).
When I signed up with Sprint PCS, Nokia phones were an option. Today they aren't, and no matter how many times I've contacted them things don't seem to be changing.
My only choices are to (A) continue to use my 3 year old phone, (B) move on to a new provider, or (C) get a non-Nokia phone.
None of those options are satisfactory to me.
(A) my phone is outdated and no longer has the features I require. It is over large, gets horrible reception in my new Apartment, and the battery hardly lasts a day.
(B) I would have to change my phone number as I was told I could not switch my current phone number over to the new provider (it is owned by Sprint). Secondly, my options are AT&T and Verizon who are both far worse companies than Sprint (in my experience anyway).
(C) There are few phones I like, and after past experiences with current cell phone companies I've chosen to remain with Nokia, not just because I like their phones but because I like the way they run their business.
As you can see, I am in a no win situation. Any choice I make leads me to make some sort of a compromise. While this lawsuit will unfortunately not go through the courts quick enough to be a benefit to me, it is long overneeded and I can only hope it helps keep others from experiencing these same problems in the future.
Bryan
As most of us know, there are six widely used technologies, Analog, GSM, CDMA 800mHz, CDMA 1900mHz, TDMA 800mHz, and TDMA 1900mHz.
Most carriers only have their towers equipped for one, maybe two frequencies. In your case, while Sprint used to use the GSM technology, they now only use the CDMA 1900mHz for their phones.
Only phones made for that technology will work on that system.
The other issue that is run across quite a bit is knowledge. Most wireless representatives will have no idea how to program handsets they do not actually sell, even if they run on the same technology and frequency. A person who sells only Nokia and Motorola handsets will have no clue how to program an older Ericsson or Samsung, for example.
Another reason they require their own handsets deals with the fact that many companies (AT&T and Sprint for example) upgrade the software in the phones before sending them to the stores.
They do this to make sure you have the ability properly access their networks.
I agree that wireless providers should provide quite a bit more selection in stocking their handsets, but I would don't expect them to sell and support every type of handset out there.
Thats like requiring car manufacturers to make sure all their vehicles can use diesel, gasoline, petroleum, electricity, fuel cells and ethenol, and have them interchangable.
All it will do is drive the price of the service and handsets up, not just for the added technology, but for the additional training and expertise the representatives will need.