Senators To Examine Exclusive Handset Deals

narramissic writes "Based on a request that a group of rural operators sent asking the FCC to examine the practice of handset exclusivity, four members of the Commerce Subcommittee on Communications, Technology and the Internet sent a letter to the FCC expressing their concern. Small operators, like U.S. Cellular argue (PDF) that 'exclusive handset contracts divide wireless customers into haves and have nots.' But nationwide operators, including Verizon, maintain (PDF) that 'in the absence of exclusivity agreements, wireless carriers would have less incentive to develop and promote innovative handsets.' The Commerce Committee expects to hold a hearing on the issue tomorrow."

Comments

Carriers != Manufacturers

[Anonymous Coward]

'in the absence of exclusivity agreements, wireless carriers would have less incentive to develop and promote innovative handsets.'

I wasn't aware that the carriers were in the business of manufacturing...

Re:Carriers != Manufacturers

[shawn(at)fsu]

If the carrier doesn't market the phone then the manufacture will. These manufactures do just well in non US markets, in fact I doubt it would hurt the manufacture at all.

Re:Carriers != Manufacturers

[davester666]

Well, if they couldn't strike these handset deals, the carriers might have to...focus on their damn networks...

Because right now the carriers seem to just be playing lip service to their networks.

Oh, you want an iPhone, but AT&T has a crappy network in your area. Right now, AT&T has a negligible incentive to upgrade their network in your area, but you have to take their network in your area to get the iPhone. If it weren't exclusive, AT&T might actually improve their network if they see a large group of people remaining on T-Mobile and using the iPhone instead of having a small group switch to AT&T anyways.

And just maybe MMS and Tethering might have been possible for the past year if AT&T wasn't able to dictate to Apple that they couldn't be used.

"Innovative", as in having features disabled?

[Anonymous Coward]

Um... yeah.. carriers would never disable features on cellphones, now would they?

Backwards Argument?

[MidnightBrewer]

It seems to me that in the absence of exclusivity agreements the carriers would have greater incentive to introduce new features because they wouldn't be allowed to dictate terms to handset manufacturers in order to maintain their current level of mediocre offerings.

Re:Backwards Argument?

[sodul]

I used to work for a big name smart phone manufacturer. The versions for Sprint/Verizon were crippled at the carrier's request, i.e.: disabling internet sharing to your laptop. The unlocked (GSM) versions of the phones had all the features, not because they were more expensive, just because there was nobody requiring to remove the features.

One of the problems with Sprint and Verizon is that the radio has to be specifically designed for them which mean you can only use a phone that they sell directly. With GSM providers (AT&T, T-Mobile, and most of the world) you just need to put the SIM card in and it works (granted the local frequencies are supported by the phone).

Normally the manufacturer has no interest to cripple it's own product, but when the carrier control what devices will work on their network you don't have any choice but to comply. It is pretty much the same situation as when you had to use the land phone from the One phone company and were not allowed to plug you own.

"Would have incentive to..."

[laughingcoyote]

"Without longer than a century copyright, I would have no incentive to develop anything useful." "Without being able to patent walking using both feet, I wouldn't have incentive to make anything useful." "Without being able to grant myself a monopoly on something, I would have no incentive to create anything useful." "Without the Shoot Anyone Using Anything But My Stuff Act, I would have no incentive to develop anything useful."

I am getting quite tired of seeing that, and we should really quit listening. If you don't want to, then by all means, don't, and feel free to fade away. In the meantime, those who still have plenty of incentive to do so (by finding creative ways to make money off of it, out of simply enjoying it, out of their own need for a tool to do something or a wish to create something for their own enjoyment, what have you), will do so.

I'm getting less and less tolerant of this temper tantrum. And that's really all it is-"I don't WANNA share!!!!! I thought of it FIRST!!!!" If the dinosaurs mean it, then by all means, their time has come and we should let them go. Good riddance to them, something better suited to modern times will take their place. On the other hand, they do tend to like paying themselves those large bonuses, so I would wager they'll start getting really creative in the absence of these artificial restrictions enabling them to be lazy and rest on their laurels.

Re:Binding Contracts.

[Qzukk]

wireless carriers would have less incentive to develop and promote innovative handsets

I'll buy "promote" but when was the last time a wireless carrier ever "developed" a handset? And no, I don't count taking a good handset someone else made and crippling all of its features with a shitty firmware overwrite that turns the phone to crap.