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."
The question is, what is the current state of regulation in the wireless arena? Do regulations currently exist similar to the old phone regulations? If not, how do the wireless carriers enforce their hardware requirements?
If I can be modded down for being a troll, can I be modded up for being an orc, or a balrog?
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(A) my phone is outdated and no longer has the features I require.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
Pesky 'standards' getting you down? Consumers switching willy-nilly from one provider to another? Don't like the idea of this new-fangled 'interoperability'? There's an easy answer! Just make your own additional rules and refuse to allow devices that don't meet them. And the best part is, you can do this while still claiming to comply with the standard!
-- Ed Avis ed@membled.com
Carriers set phones' SIDs and MDNs so that they work with only one provider (AT&T, for example). They add encryption on top of that so that it's hard to reprogram a phone. Carriers are currently regulated only in terms of tariffs on the service (i.e. federal tax), not on the handset-to-service binding. The latter is unregulated, hence this filing with the district court.
Next year, the Ontario government will be posting a list of approved automobiles for travel on the Highway 407 Electronic Toll Route. Only Chevrolet, Buick, and a couple Pontiac vehicles will be compatible with the new concrete technology. ;-)
"I have never let my schooling interfere with my education." - Mark Twain
The point of requiring all phones used on their networks isn't necessarily an unfair business practices. The wireless carriers may just want to alleviate the threat of abuse over their networks. In this time of attributing fault to various people in the hierarchy of responsibility, handsets could be potentially damaging if they were modified to be scanners. So, to eliminate that possibility, carriers may examine all potential handsets and only approve the ones that could not easily be modified to do such damaging things. One thing I don't understand, though, is how this could bring antitrust accusations against these companies. The only case I can think of is possibly collusion between the carriers, but with the competition between low rates occurring with such viciousness, I don't believe that is even a possibility.
As opposed to... what? Putting up with explaining over and over why random feature 'x' of gee-whiz gollywag phone doesn't work on their network?
Vintage computer games and RPG books available. Email me if you're interested.
Anyway, it is in the carrier's best interest to control the equipment used to access their network. In the newspaper today, there was an interesting article on the HDTV standard, which while a somewhat different scenerio is still relevant. The studios want all newer TV's manufactured to contain DRM type stuff, which would make the previously sold HDTV's obsolete. Now whether or not they can do this over the airwaves is the debate. Over cable is one thing, but over airwaves they've paid the FCC for the rights to, can they control what type of equipment has access to it. I see this as very much the same argument, and believe that if this antitrust case goes through, the TV network companies will in the future see very much the same case.
The future isn't what it used to be.
In Europe, with the GSM system there, you usually ahve two options.
1) An open GSM phone. You can use this anywhere, on any network. Either roaming, or with a sim card from that network.
2) A branded phone, where it is locked to a certain carrier. So you can't just take any sim card and use it, you have to use that network.
With #2, they usually sell the phone cheaper, because you are stuck with their network. Which makes sense.
But.. a carrier will not refuse service or differentiate at all as to what phone you use.
I work for a wireless billing software company. About Item (B)... the FCC is requiring cellular companies to make their numbers "portable" in the near future (more on that later). In other words, you will be able to keep your current wireless phone number, bringing it to another competing wireless provider, provided that it's in the same market.
The problem is, every time the FCC has set a deadline for this to happen, all the big wireless companies whine a lot, petition the FCC because implementing the switch/billing software/etc upgrades would be "too difficult" (i.e. costly), and the deadline gets postponed. As it stands now, it was supposed to already have happened over two years ago, and the latest deadline in late November is probably going to be pushed out another six months (if it hasn't been already). The net result is that it really sucks to be the consumer, 'cuz folks like you have to face decisions like the one you're faced with now.
Sprit was apparently a visionary. They don't need to artifically disable unapproved phones from working... They just build their own propritary PCS system, and NOTHING can even potentially communicate with it unless it uses that same PCS protocol.
Kinda like MSN specifically disabling connections from non-Windows machines, and with AOL it isn't even possible to connect from non-Windows machines in the first place. (Yeah, yeah, Macs. I know.)
Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
It's time the governments of the world realize a free market doesn't work everywhere.
Standards need to be set by a regulatory authority. Otherwise competing businesses will not just have the opportunity to create their own standards, they'll be forced to do so. There'll always be one business that'll use dirty tricks, so to survive, all must use them.
The U.S. cell phone market is a joke. Over here in Europe where I live I can buy any phone from anywhere. It'll work with any operator (as long as I pay for their service - duh). It will operate in any country in the world (except the U.S. and some other exceptions). There are no usage restrictions.
A few years ago when I visited the U.S. the phone I rented worked in New York, but not in Iowa! And I'll be moving to Boston next year, forcing me to get a U.S. phone. I hate you people! (well your phone companies at least...)
P.S. Is it true that text messaging doesn't always work between operators in the U.S?
My Sig: SEGV
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.
I called VoiceStream about allowing a certain phone on their network. They initially indicated it wouldn't work, but when I pointed out it had the proper band, they said I was free to try it.
I don't think the complainers have much of a case. Phone systems are different because their designers start with different frequency allocations, and since they won't get any hardware reuse, they don't bother to make consistent protocols either. And nobody's telling them to do so.
This is the reason you don't want laissez-faire in some consumer industries. You get what you wish for.
--Blair
It's unfortunate that issues like these are treated as legal matters in the US, not policy choices. Cell phone carriers have a valid argument that by tying phones to their service, they can offer more integrated and customer friendly service (sounds familiar?). But that is likely to be outweighed by the benefits to consumers of giving them phone and number portability between carriers. The choice between the two is a policy choice, not a legal matter (I think the same applies to Microsoft's business practices, which are quite similar).
Silly fellow, a company making life less convenient and more expensive for consumers is called a market opportunity. That's how new entrants kill established players. Companys are born, mature, and eventually die. If they don't respond to customer demand, they tend to do so a lot faster.
The people making this lawsuit have no idea what
they are talking about.
I lived in Japan for two years, and just returned to the US. I found that the cell phones in Japan are literally years ahead of phones in the US, and data and Internet features like iMode, email, and Java apps on the handset, which simply work
in Japan, are completely hopelessly brokne in the US.
As far as I can tell this lossage is due precisely to the lack of any leverage that carriers have over handset makers in the US. In Japan, NTT DoCoMo, and the other carriers, dictate exactly what features they want, and thus
they get high quality user experience; all the phones have compatible web browsers, color displays, internet email, and other features. The features all work almost perfectly across the different handset models from different manufacturers.
Contrast this to the pathetic piece of junk called WAP in the US, where each phone has different incompatible implementations. Some phones have color WBMP support (hah!), others handle GIF, other PNG, others JPG. Some carriers gateways have byte limits of 1 kbyte, others higher, no telling which is which though. Chance of actually displaying a color picture, or a proper web page on your phone: about zero.
Email does not work consistently on US phones, and Java applets are still science fiction. People have the WAP forum to thank for this
pathetic situation. They were so greedy that they
tried to get all the carriers to standardize prematurely on technology that solved non-existent problems. NTT DoCoMo just went ahead and basically just built HTML 2.0 into thier phones (iMode) and it works an order of magnitude better than WAP.
Just to be clear, I'm not sure if I can get a Treo with AT&T or not. I have made 0 inquiries about it. I haven't tried to because a long time ago I tried to go from Sprint to AT&T. Result? I had to buy a new phone from AT&T. Fortunately, I didn't mind at the time because the Sprint phone I had was crap. But this basically stuck the idea in my mind that if I don't get the phone through AT&T, I won't be able to use it.
The Treo's I've seen at Best Buy had 'Voice Stream' marked all around them. So I just shrugged and decided to wait. I really don't want to switch from AT&T, but I would like to get a PDA phone in the next 6 months or so.
Curious, though: Are there any AT&T customers with a Palm based phone?
"Derp de derp."
I suggest VoiceStream. I have had no trouble using several phones with them. It's just a matter of popping the sim card out and moving it to a different phone. I have so far resisted getting a triband phone (I prefer Nokia and their triband is $$$) and so pop my sim card out of one Nokia 69xx series and in to another. I have had no trouble using the service in the US, Canada, UK, Netherlands, Poland, Switzerland, Greece, or Spain.
This is probably because VoiceStream is owned by Deutsch Telekom.
Thanks!
I thought Microsoft was the only one allowed to be accused of such a thing? :P
I hope there are more I don't know of... I hope... But you can get a phone from USTronics (and I hope someone post links to more, it's sad they are the only company I know of, I have no connection to them but give them credit for this).
GSM 900 is a standard, but low and being phased out. GSM 1800 is the EU and World standard, and now that the US is doing GSM they "have to be propriatary" and only offer 1900 band, not 1800 band. That honestly has more to do with the FCC and bandwidth avaliablity than it has the standard, but it has a bit to do with both.
Your best bet, as a consumer is that wants service, is to get a tri band GSM that does 900/1800/1900) and is unlocked and will accept a SIM card.
You have to consider, they many not lock you out of switching companies as much now (because they "lock you in" in other ways, like 1 year service contracts.)
But, the lock codes still "criple" the phone companys software on the phone.... Those Nokia and Ericsson phones do a LOT more than the company want's to provide support for, so they "LOCK" the features out to keep you from asking "why isn't my email/text messaging working, I found the option on the phone!
I wonder how much of this comes as a result of pressure from handset makers. By not allowing handsets to be transfered between wireless companies Motorola (or whoever) might get to sell two (possibly identical) handsets instead of one.
Also, this restricion might allow the wireless companies more better deals with the handset mfgs. As far as I can tell it would generally be in the best interest for the wirless company to allow any handset (lowering the barriers for cusomters to switch to their service).
So how much of this is the result of wireless companies being bullied by handset makers (just has PC mfgs are bullied by MS)?
~Adam
SPAM
I've got 50 karma (about 14 today), so...
so what?
All this talk of the US cell phones being so broken compared to Europe and Japan? Tsk tsk tsk...
Shame.
and all those intelligent, educated software engineers sitting at home reading the want ads, deciding whether to become a plumber or an electrician....
really is a shame...
see any CONNECTION HERE?? MANAGEMENT???? HELLO?????????
Well, of course you don't. Hurry along now, you're late for your all-day meeting!
Someone said "it'll get worse before it gets better?" I sure hope not.
...well, some level of precedent.
I'm technically not old enough to remember any of this, but from what I recall, there was some issues with the phone company not selling phone equipment to people -- only leasing.
There was some issue about the use of non-Bell phones on the system. Could someone respond with more intelligent and enlightening information regarding this?
The gist of it is that the general population won the right to use their own phones on their phone connection without being hassled by the phone company about it.
Not specifically this case - but I would like to point out that "Class Action" lawsuits mainly benefit the lawyers who file them and basically no one else.
Here is how the scam works - One million plaintiffs each of whom gets say $10 - the lawyers pocket 15% or more of each judgment; so the lawyers take down a cool couple of million.
Very cute - if anyone but lawyers pulled a similar scam they would be in prison for fraud.
BTW, Qwest sucks bad, and is not a "wester US provider" for Cell service, but a "big provider in mid and southern Arizona" PERIOD. They are known outside of that area, but that is thier KEY hardcore stronghold for cell service.
So to say Qwest is any kind of big company is laughable, and only serves to prove you spent way to long in Southern AZ and need to travel more... (which isn't totally a bad thing, I grew up in Tucson, and loved it... it just shows you don't get out as much as you should).
Actually...
I had a few problems with AT&T activating a phone they didn't sell.
I had been waiting for them to release the Ericsson T39, but the launch dates kept being pushed back. I called them and they said they were going to be getting the T68, no date though. I called their GSM support center and got conflicting opinions on them activating a phone they didn't sell. They told me they could sell me a SIM and I would just put it in my phone. On that note, I went ahead and bought a phone on eBay because I was tired of waiting for them. When I picked up the phone from the person I bought it from, I also stopped at the nearest AT&T Wireless store to buy a SIM. They sold me a SIM ($25) and told me to call a certain number to activate it. I call said number and the CSR basically went ballistic about the store selling a SIM without a phone. He then refused to activate the SIM. No amount of convincing would work. He said they would only activate a SIM only if it was sold with a phone from them. At that point I thought I might be SOL in getting my phone working on their network. Well, I called back and spoke to a supervisor and asked the same questions again. He told me the same things that the previous CSR had said. I then asked him what would stop me from getting one of their phones and using that SIM. He said nothing would, and couldn't tell me not to do it. I had been with AT&T since 1994 so I knew I was going to get a good deal on the Customer Upgrade Program. I went to one of the AT&T stores in downtown Seattle and bought a Motorola Timeport that they were selling for $199, my price was $9.99. After the hour long wait for them to "move" my TDMA account to GSM, I pulled the SIM out of the Motorola and stuck it in my T68 (in the presence of the clerks at the store) and the phone worked fine.
I should not have had to go through all of this to get my phone to work. Had they activated the SIM that I bought, they would not have had to spend money to subsidize the Motorola I had to buy to get them to activate a SIM. I did pay more than what AT&T is currently selling the T68 for, but I did get the portability of taking it to whatever carrier will activate a SIM.
I have heard rumors about AT&T planning to do naughty things to people who are using phones that weren't purchased from them. One is not allowing any phone with an IMEI(sp) number that is not one they sold to access their network. I do not think this can possibly be legal. I think there is a requirement for all carriers to allow access to their networks for 911 service. They can't block a phone without being in violation of that.
The problem I had with the WAP stuff is that their WAP gateway was not yet configured for the T68. Shortly after they started to sell that model, the gateway was updated.
I can't see any possible way for this suit to succeed on its merits. The courts have held, again and again, that a "unilateral refusal to deal" is not a violation of the antitrust laws. As far as I can tell, there isn't any allegation the companies conspire not to use each others' phones -- and, of course, there would be no reason for them to conspire _not_ to cooperate.
But, like most class actions, this suit can succeed without the slightest hint of merit, since the real point is just to extract fees for lawyers by making it too expensive for the defendants.
I Can't Believe It's A Law Firm, LLP does not necessarily endorse the contents of this message.
Ok, I am from Canada, wireless here is just as bad.
One of the main reason why Japan and other countries in the world today have better wireless technology is because of the fact that the landline is way too expensive
For example in Japan, you still have to pay by the minute for LOCAL call from landlines!
USA is too big and landlines are cheap, that's why it take a lot of incentives for the mass to get wireless.
That's my theory anyways.
kawai
i'm amazed, usually here in Europe we have to sneer and hide our jealously behind sarcastic comments in all things communication related, eg you have always on DSL, we're still waiting (well, DSL is /starting/ to become more a bit widespread in some EU countries), you have 155Mbit/s OC-3c's while for the same price we get E2's (4Mbit/s), you have free local calls - we're still getting screwed by former state monopolies who still control the local loop and do their damnedest to make it difficult for the competition to get access... etc..
But at last we europeans (and those asians even more so) have a chance to cast a gloating data communications eye across the water: the USA is still in the mobile phone dark ages!
Over here, you can buy any phone and have it work anywhere in europe with any carrier. It's all GSM here. (well, actually there are pre-paid phones, and bill phones) and I can go on holiday to a little greek island and my phone could roam on either of the 2 greek carriers that covered the island. I go to london, get off the airplane and my phone has a choice of a whole bunch of networks!
My dad travels a lot, so to save on roaming costs he bought a pre-paid GSM SIM card in each country that he regularly spends time in. So when he gets off the plane, he just puts whichever SIM card into his phone according to which carrier has the best rates. the only disadvantage is that to reach him i might have to dial 4 numbers (Dad, Dad-FR, Dad-NL, Dad-ES). But hey..
Also, do people in the states have to pay full price on the handsets? At least here in EU, most of the cost of handsets is subsidised by the carriers (low-end nokia's are about EUR30 to EUR70 depending on the carrier's deal - used to be they gave them out free, but not anymore)
anyway.. GSM - we pee in your general direction! hu hu..
I use Friend/Foe + mod-point modifiers as a karma/reputation system.
I have heard rumors about AT&T planning to do naughty things to people who are using phones that weren't purchased from them. One is not allowing any phone with an IMEI(sp) number that is not one they sold to access their network. I do not think this can possibly be legal. I think there is a requirement for all carriers to allow access to their networks for 911 service. They can't block a phone without being in violation of that.
Sure they can - they can let you come up on the network, but refuse to complete any calls but a 911 call.
I'm a consultant - I convert gibberish into cash-flow.
AT&T plans to go to GSM because EDGE and WCDMA are 3G upgrades from GSM. Also, I can send an SMS to any provider so far, including Cingular and VoiceStream. Just enter the number, and they get the SMS with a return addy of my phone's text message email addy, so they can reply.
I use Voicestream, and I can SMS my friend that uses AT&T without any problems. I've never had that work with any other carrier though.
Before there was CDMA, the days when there was cellular ONLY the phone was "Free!!" - ...but there was a contract.
The thing was the phone cost nothing, a penny or maybe $100 in the case of the "cooler" ones. The phone was being paid for by the cellular provider because you were signing a contract.
But what was the contract for? In many cases the contract wasn't for service at all. Sure, it's nice to have a steady customer for years - but you just gave some idiot a $400 phone for free so you need to collect on that.
It would be like the cable company giving out Tivo's for "Only $20!!". They may disable some features and not let you move with it but you would have to sign something right?
I'm guessing that there is a loophole that let's them not "unlock" the phones. They are taking a loss on every phone sold.
Who believes the phones with wireless web and vibrating features cost $39.95? I don't.
Get your Unix fortune now!
After hearing nothing but horror stories and and now reading this article I will probably never buy one.
What real advantages do I get? Oh, thats right. My boss can call me anytime he wants. Oh boy. Sign me up. Or have my annoying parents or friends call. I prefer screening with my answering machine at my convience thank you. There really is no advantage of a cell phone except that the office follows you where ever you go. And do not be decieved that carrying a cell phone somehow increases your job performance and efficiancy. It just doesn't. Can you think of anyone who has got promoted because his cell phone made him or her like %40 more productive? Its all bs. If I need to call someone, I can just find a pay phone. A standard old fashioned rj-11 line meets my needs just fine. Infact my father is an executive and even he never uses one. I asked him why because he is a VP. He answered when I leave my office, I want my office to stay where it is thank you.
Also I give a message to the phone companies that I will not be jerked around. Give me cell phone access for $20 a month( same as regular phone line) or I wont switch. I find a simularity between the MPAA and megaTeleco trying to persuade everyone that the world will leave without you if you do not buy there latest products. I just laugh at them and count the money saved in my wallet.
http://saveie6.com/
The important thing to note here is that one of their phones are needed to activate the SIM. Once that's done, you can use any phone (I tried a couple of my GSM phones). They told me "oh, just buy the phone, activate, and return the phone." Sounds like what you ended up doing, too (except you kept the phone).
Of course, I ended up cancelling the service and returning the phone the next day since their GSM coverage was crap where I needed it to work. Maybe in a year it might be better.
-- PhoneBoy
The views expressed herein are not necessarily those of anyone, including the poster.
In the UK most phones that you can buy are locked to the only work on the network which they are first sold for use on and can only be used on that network.
But by either paying about £30 to the phone company, or about half that to an "unlocker" you can easiliy get your phone unlocked to work on any network. And the phone companies seem to allow any phone to work on their network. After all, its in their interest to try to prevent you from using your phone on other networks, but in their interest that you use your unlock phone on *their* network rather than another one.
And the cost of calls seem to be considerably less here that in the USA from what I've seen
Sig is taking a break!
Local calls are only 'free' in the US if you make enough to cover the monthly local calling fee (at whatever rate would be charged). I don't make a lot of local calls in the UK since I got ADSL, and just use my mobile for most social/business calls, so the US 'free local calls' scheme would actually cost me money.
The rest of the world is actually *bigger* than the US (shock!) and GSM works just fine there...
If phoneboy's summary is correct, this lawsuit is a joke. Let's look at each piece separately:
The carriers basically dictate required features to handset manufacturers.
I've seen these requirements, and they don't generally dictate anything other than what the GSM standards require. It's a way to ensure that all the phones on the network have the same set of features for the customer. Take Orange for example, a major operator in the U.K. They require 2-line support on all their phones, so they can offer phones with 2-lines to all their customers. This is a customer win, and is a key reason to pick Orange over someone else in the U.K.
Phones are tied to specific carriers and cannot be moved between carriers.
Absolutely! No question! And they should be! That lovely little Nokia 8290 you just got was likely subsidised to the tune of $100-$150 by your new operator. If the operator wants any chance of getting their money back for that subsidy, they have to prevent you from getting a cheap phone from them and then grabbing a SIM from another operator.
Most operators will gladly unlock your phone for you so you can use it on another network, especially in Europe. Just call them up and ask. They might charge you ~$50, but that's still less than their subsidy. Even Voicestream in the US will do this for free if you ask them, I've had it done.
Carriers refuse to allow handsets on their network they didn't approve.
This is flat out wrong. I've been using tri-band phones that I purchase in Europe over in the U.S. for years with my basic Voicestream SIM. In fact, I've never purchased a phone from Voicestream. Cingular does this as well. AT&T currently doesn't sell SIM-only packages, but they are going to. (Keep in mind they *just* started GSM service, and are still trying to get everything sorted out).
Manufacturers thus cannot sell handsets that aren't approved by carriers because carriers will not allow them to be used.
True, you cannot sell a handset *to an operator* that the operator hasn't approved for sale on their network. This is because the operator is responsible for all the support calls, replacement, and management of the phones on their network. Would you buy 1,000,000 phones from a company if it hasn't passed your quality assurance tests? Heck no!
If your phone fails these tests then it just means that you can't sell your phone to the operator directly and have to make it available through other channels. But (and again, if I've seen these tests) if you can't pass the tests then something is *seriously* wrong with your phone.
While it hasn't hit the U.S. yet, there are companies in Europe that make a killing selling phones that are not tied to a specific operator. Carphone Warehouse is a great example from the U.K., and you can bet that now that the U.S. has woken up to cellular it won't be too long before the same types of companies are available here.
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.
This is the statement that shocked me the most. Have you *looked* at cellphone pricing and plans lately? My newspaper is constantly filled with offers that include 1, 2, or even 4 phones for *free*, with tons of minues included. For $29.99 a month I can get a really nice phone and more airtime than I can possibly use in a month.
If the operators *couldn't* lock their phones to their network to guarantee they'll make back their subsidy, do you actually think the prices will go *down*?
Sure, there's plenty of reason not to cooperate. But there's no possible reason to conspire not to cooperate. If you don't want to cooperate, you just ignore each other and develop separately, which is the precise opposite of a conspiracy.
I Can't Believe It's A Law Firm, LLP does not necessarily endorse the contents of this message.
Ok, you are not smart.
You bought a phone AND[!] signed the contract. Did you read the contract? Chances are they do in fact 0wn your phone.
I have worked with and around mobile phones since cellular and up until now and the big bust of digital carriers.
Many [i.e. Verizon] companies started out as Cellular and still work on the same principles. They are buying the phone for you and selling it to you at a significant loss.
A local company that is now part of Verizon would, for example, sell you a Star TAC for $99 but they still 0wned the phone. They wouldn't go to great lenghts to retrieve it if you canceled your contract because you would have to pay the lump sum to get out of it. That lump sum is for the phone itself - not for any service.
Your contract isn't for service at all. Maybe it is. You would have to be stupid or desperate to get into a wireless contract today. I was a GTE customer when they rolled out in my area [one of the first] and ever since then Cellular has been dead.
Great quality, CDMA, no contracts, low minute charges and cool phones.
The down side to this new wireless telephone access is that when you buy a phone at the mall it is a "Sprint Phone" or a "Cingular Phone" - it's not "My Phone".
Actually if you watch the ads you will see that they advertise phones as "Get this nifty, cool, Sprint phone" but not "Get this nifty, cool, Nokia phone".
Alas, this was the reason that if you had provided your own equipment in the old Cellular game you could get out of signing the contract.
Imagine your local ISP sells you a computer for $49. You pay them a monthly fee for net access. He isn't going to let you move with it and likely they are going to make you sign a contract to recover the costs of your machine.
Get your Unix fortune now!
The idea that cellular phone networks are a free market is laughable. The barriers to entry are fierce and largely political. New entrants have high barriers of entry and this distorts and facilitates bad behavior. The cure is to lower the barrier to entry so that established carriers have to either cater to customer needs or they watch their market share erode to upstarts who do a better job of it.