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FCC To Probe Exclusive Mobile Deals

On Tuesday, we discussed news that four US Senators would be looking into the exclusivity deals between carriers and cell phone makers. Apparently, they didn't like what they heard. Reader Ian Lamont writes with an update: "The Federal Communications Commission is planning on launching an investigation into exclusive handset deals between mobile carriers and handset makers. In a speech on Thursday, acting FCC Chairman Michael Copps said the agency 'should determine whether some of these arrangements adversely restrict consumer choice or harm the development of innovative devices, and it should take appropriate action if it finds harm.' It's not hard to imagine who might be targeted — at a separate Senate Committee on Commerce hearing on Thursday, much of the discussion centered on AT&T's exclusive deal to carry the iPhone. AT&T claimed 'consumers benefit from exclusive deals in three ways: innovation, lower cost and more choice,' but carriers and senators from states with large rural populations disagreed, saying that their customers had no choice when it came to the iPhone — it's not available because AT&Ts network doesn't reach these areas. One panelist also brought up the Carterfone precedent (PDF), which concerned an 'electrical acoustic coupling device' that a man named Tom Carter developed in the 1950s to let field workers make phone calls using a radio transceiver connected to AT&T's phone network. AT&T, which was then a monopoly, claimed no foreign devices could be connected to its network, but lost when it challenged the Carterfone in court. The result spurred innovation such as the fax machine."

6 of 159 comments (clear)

  1. So what I'm hearing is... by hansonc · · Score: 5, Funny

    Four Senators want iPhones but don't want to leave Verizon...

    As with everything, until it inconveniences a Senator directly they don't see it as a problem

    1. Re:So what I'm hearing is... by oneplus999 · · Score: 4, Funny

      Does that mean if we chip in to buy them some PS3s or some 360s we might get rid of these ridiculous console-exclusivity deals?

  2. Re:It's Not Your Prerogative by Anonymous Coward · · Score: 2, Funny

    good lord.... I agree with you, but I'm not as emotionally invested as you are in this discussion.

  3. Re:Doesn't Anyone Remember? by Anonymous Coward · · Score: 1, Funny

    What the fuck are you smoking? AT&T didn't "make this possible." They agreed to Apples deal which basically says "bend over AT&T." Fucking apple fanboy queer.

  4. Re:Well, my 2 cents by beuges · · Score: 2, Funny
  5. Re:One out of three ain't bad... by Man+On+Pink+Corner · · Score: 2, Funny

    Perhaps AT&T should use as their new slogan, "War is Peace; Freedom is Slavery; Ignorance is Strength."

    True, that sounds even better than their current slogan ("Your world. Delivered. To the NSA.")