Verizon Offers Compromise In Exclusivity Debate

For about a month now, Congress and the FCC have been investigating the exclusivity deals between mobile carriers and phone makers which require that certain handsets only operate on certain networks (for example, the iPhone on AT&T). Now, Verizon has volunteered a compromise to Rep. Rick Boucher (D-VA), chairman of the House Energy Subcommittee on Communications, Technology and the Internet, which would allow smaller carriers access to the restricted phones after a six-month delay, while continuing to block the major carriers. "From now on, when Verizon strikes a deal with a manufacturer for exclusive access to a handset, it will allow the phone be sold after six months to any carrier with fewer than 500,000 customers." In a letter to Boucher, Verizon said, "Exclusivity arrangements promote competition and innovation in device development and design. We work closely with our vendors to develop new and exciting devices that will attract customers. When we procure exclusive handsets from our vendors we typically buy hundreds of thousands or even millions of each device. Otherwise manufacturers may be reluctant to make the investments of time, money and production capacity to support a particular device." Many remain unimpressed by Verizon's generosity.

Comments

Why Should Verizon Compromise At All?

[Anonymous Coward]

These exclusivity deals are not unheard of in businesses. These excluse phones part of what differentiates them their competitors, and hopefully draws customers.

It's not as if you couldn't get mobile phones on another carrier if you don't like this arrangement. Consumers are not being deprived here. The FCC is barking up the wrong tree, and Verizon shouldn't even have to offer this up. Its yet more government meddling in business affairs.

Re:Why Should Verizon Compromise At All?

[The_DoubleU]

Say you have a DSL line with AT&T and want to buy a Dell laptop to use with that connection but you can't because only Verizon is allowed to sell Dells with their DSL line. If you want to use AT&T DSL then you have to buy a Mac. (Linux is supported on both networks but only 56K connections)

The customer should be allowed to buy any mobile device they want and then go to a service provider to get a connection. So the customer can get the best choice for them. The phone they want + the service they want.