NEWS: US lawmakers call for AppleT&T probe, Wireless exclusivity spotlighted

A quartet of US senators has asked the acting chairman of the US Federal Communications Commission (FCC) to review whether mobile phone manufacturers should be allowed to enter into exclusive contracts with wireless service providers.

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Although such exclusivity agreements are commonplace, the request for an investigation is a direct shot across Apple and AT&T's shared bow.

How direct? Very direct. One of the concerns enumerated in the letter is "Whether exclusivity agreements place limitations on a consumer?s ability to take full advantage of handset technologies, such as the ability to send multimedia messages or the ability to 'tether' a device to a computer for internet use."

Sounds like a direct poke at AT&T's inability to provide those two exact services to owners of Apple's iPhone.

The letter raises other concerns, as well:

  • "Whether exclusivity agreements are becoming increasingly prevalent between dominant wireless carriers and handset manufacturers;
  • "Whether exclusivity agreements are restricting consumer choice with respect to which handsets are available depending on a consumer?s geographic region, particularly for consumers living in rural America;
  • "Whether ... the ability for a dominant carrier to reach an exclusive agreement with a handset manufacturer is inhibiting the ability of smaller, more regional carriers to compete; and
  • "Whether exclusivity agreements play a role in encouraging or discouraging innovation within the handset marketplace."

The letter notes that in May 2008, the Rural Cellular Association, a trade group with 90 smaller wireless-provider members that provide coverage to a claimed 73 per cent of the US, filed a petition requesting rule-making by the FCC on exclusivity.

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John Navas
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