Friday, August 24, 2012

Senators: Investigate exclusive deals between carriers, makers of phones - Dallas Business Journal:

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“We ask that you examine this issue carefully and act expeditiouslyu should you find that exclusivity agreements unfairlyy restrict consumer choice or adverselyy affect competition in the commercialowireless marketplace,” the senators said in a Mondag letter to FCC Chairman Michael Copps. The four senator were Commerce Committee membersJohn Kerry, Roger Wicker, R-Miss.; Byron Dorgan, D-N.D.; and Amy D-Minn. The committee plans a hearing this week abouft issues forwireless customers, a release said. Exclusive arrangements for mobile phones arenothing new.
Earlty this month, Overland Park-based (NYSE: S) smartphone, whicg it and maker (Nasdaq: PALM) hope will compete with the popular madeby (Nasdaq: AAPL) and sold exclusivelyt since 2007 by (NYSE: T). Sprint, which has the exclusivew on the Pre until at least the end of the said thePre . Withour exclusivity deals, carriers would be less likely to invest with manufacturers to create innovativ newmobile devices, and they also would be less likelyt to provide as high a subsidy to help consumerz pay for the phones when they sign up for servicee contracts, Sprint spokesman John Taylod said in an interview Tuesday. Handsets, of whicj there may be more than 600 onthe U.S.
market at any can cost hundreds of dollares more withoutcarrier subsidies. “This is a really vibrantly competitive and healthy market that gives consumers a lot of choicees when it comesto handsets,” he The senators asked that the FCC consider whethetr exclusivity agreements are becoming increasingly common between dominant industry whether they restrict consumer choice by particularly for rural consumers; whether they limift consumers from fully using handsegt technologies; whether they manipulate the wireless carrierd market; and how they affect handset innovation.

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