The Federal Communication Commission is looking into competition among wireless providers in the United States. Right now, four national carriers control about 90 percent of the cell phone market, with AT&T and Verizon holding down 60 percent. The FCC is looking into how this seeming stranglehold of a few carriers affects innovation and consumers.
FCC Chairman Julius Genachowski said, "I hope the new wireless competition report will help set a standard for fact-based, analytically deep analysis of the mobile industry... It is essential that the commission develop policies that encourage a new generation of innovators, working with new tools, on new platforms, and having an extraordinary impact on our economy and society."
The FCC is also examining exclusive deals between handset makers and carriers, like the one linking AT&T and the iPhone, as well as looking into the industry's billing practices. Here's the point and counter-point:
Point:
Andrew Jay Schwartzman, president of Media Access Project:
"This investigation is long overdue... The country's four major wireless providers have enjoyed the fruits of market power for too many years, at the expense of the public's ability to gain widespread access to low-cost mobile broadband services."
Counter-Point:
CTIA, The wireless industry's trade group, president Steve Largen:
"[The U.S.] has the least concentrated wireless market on the planet.... The wireless ecosystem -- from carriers to handset manufacturers, to network providers, to operating system providers, to application developers -- is evolving before our eyes, and this is not the same market that it was even three years ago."
I have a feeling that once it's finished its studies, the FCC is going to find that cell phone companies use their positions at the top of the electronic food chain to discourage innovation and competition from new companies, and often take advantage of their near-monopoly to overcharge subscribers, lock people into ridiculous contracts, and institute bizarre and unfair billing practices. In other words, the jig is (hopefully) up, cell phone carriers!
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anth920
when ever the government comes in to monitor stuff like this they will most likely place restrictions on these companies that are meant to bring them down. Then they will say that they are trying to let smaller companies in but they dont realize it will hurt everybody as a whole. And this is the worst time to do this. If you guys want a detail account of whats going to happen read atlas shrugged.
Necronomoly
I am rooting for the FCC. (wow I can't believe I said that)
slimmer
Phone, TV, Computer, fuel for cars/transpo , food , heat/electricity ,services that a normal citizen cant really go with out (and shouldn't) should be free.
slimmer
The FCC didn't do anything to Comcast after they caught them lying about slowing peoples speeds down that used any kind of p2p.
Whats wrong with this site ? posting messes up half the time.
luvcoronaxtra
Thank goodness! it's about F.ing time. This has been long overdo. Fingers crossed that my bill drops about $30
199ALLSTAR
I guess someone @ the FCC is not too happy with the fact that they can't get their iPhone no Verizo's network. I agree that the billing practices of these companies needs to be addressed. However this carrier exclusive deals will continue. You can't force Verizon to carry the iPhone if they dont want to be raped like at&t. This will all go away once the palm pre comes to Verizon.
That's what this is all about. I mean the fcc wasn't too concerned when the Palm Treo was the it phone to have. They're only concern is that they have a cool phone on their network, and once they do this will all go away.
slvchris
The Gov should stay out of this. They are putting their hands in too many things. F the FCC
deadninjapool
also if i were on my storm it would be spelling for me and i would not look like such a fool.
deadninjapool
deal
deadninjapool
wow if cell phone's really were this big of a dale we would move to japan or korea where they rain as king's of the cell phone world.
wutizang36
I'VE WORKED FOR BOTH VERIZON AND AT&T AND THEY'RE BOTH SLEAZY AND USE UNDERHANDED TACTICS.. BUT, IF I WAS GONNA CHOOSE THE LESSER OF THE 2.. IT'S DEF VERIZON. AT&T'S RUN BY A BUNCH OF REAL SCUMBAGS.
LogicDsign
LOL @ "analytically deep analysis"
Also - 2-year contracts with steep penalties are utter BS. This allows the carriers to provide crap service and retain customers because most people do not want to pay $200 to LEAVE a mediocre
service.
slackersphere17
laissez faire
angryspoon
I am generally a person who says keep the government out of things but sometimes you really need them to step in. There is no reason for the things that carriers do. Why has the price never gone down even as the technology has become standard? At some point things need to change, At&t and the iphone really need some changes as well as the rest of the market. I love my G1 and all it contains but common when it comes down to 2 year contracts and all the little charges. its all crazy.
mrrwbrown
The government is doing its job to ensure that capitalism is being held true in the cell phone market. That and I'm sure some politician under contract with T Mobile is royally pissed he cant get an iphone...
doug1083
i dont think there should be exclusive phones to each carrier but i dont see how the government needs to get into it...just like steroids in baseball...its the MLBs problem not the governments they have better things to worry about
Kanaye
Please...let this mean that my bill will come down from almost 100 bucks that I pay monthly...I love my iPhone, but sometimes, I think AT&T treats me unfairly...
SirCitadel
Jack and Irma's Magic Phones
...did anyone get that? anyone?
Smartguy81
@SJ
This won't amount to a thing. It is simply a feel good measure. The FTC would have to be involved for it to matter where you pointed out most of your problems. FCC will just regulate content restrictions.
What is so wrong with cell manufacturers having exclusive contracts with a carrier??? Nothing. If you want an Iphone suck it up and get ATT. If you dislike ATT that much, go get a Pre or G1, or Storm.
You could do something radical and make a handset that works on CDMA and GSM that is jailbroken or homebrewed and be a pirate.
WhiteWolfAssassin
Maybe AT&T will give a decent network at a fair price. In a perfect world we would not have this problem. But alas, we don't live in a perfect world and I don't predict any good results coming out of this study. Maybe I am just pessimistic, but by the time they're done debating over the issue and it's resolved, I don't think it will matter any more.
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