Antitrust Pressure Mounts For Wireless Providers

Over the past few weeks, the cellphone industry has been criticized on a variety of subjects, from distracted driving to handset exclusivity deals to everything else that's shady within the industry. Verizon's CEO has now responded, addressing what he claims are "myths" about standard practices. Reader DJRumpy points out that the chairman of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights has been calling for an investigation into whether competition is being stifled through many of these practices, "including possible text messaging price fixing and questionable roaming arrangements." Apparently the new antitrust chief is hitting resistance from within the government over the aggressive inquiries into this and other major industries. However, a small victory was achieved the other day when the National Telecommunications and Information Administration "told incumbent carriers that they'll have to prove their cases just like everyone else if they want to challenge broadband grant proposals from smaller players." There is also legislation in the works that would require states to impose a ban on text messaging while driving or lose a significant portion of their federal highway funding.

Comments

*Yawn*

[MikeRT]

On antitrust, the Obama Administration seems to be just looking for something to do. They're looking at going after Google over... precisely what? The fact that they produce a lot of free apps which any small, dedicated team of developers could reasonably reproduce and integrate? Some are clamoring for action against Apple because they are the only player with an integrated consumer content sales and delivery system that the public really wants? Now they're going after wireless providers when there are still several major players on the market all because of text messaging fees?

Here's a thought, take the phone away from your tween daughters if they're racking up 800-900 texts a month. Or better yet, get an unlimited plan and just deal with it. Are we so damn poor that we'll mess with the market because theoretically someone could be paying $35/month instead of $50/month for an unlimited texting plan for an entire family?

Re:Ban on text messaging while driving?

[sanosuke001]

I am all for banning texting while driving. However, this is a state issue and this underhanded tactic of withholding funds to get legislation passed is wrong, deceitful, and should be illegal.