FCC to Examine Handset Exclusivity Deals With CarriersAuthored by Mark Hefflinger on June 22, 2009 - 10:35am.
Washington - The Federal Communications Commission (FCC) has
announced that it will open a formal proceeding to examine the exclusive deals
between cell phone makers and wireless network operators that some have argued
restrict consumer choice, such as the exclusives between AT&T (NYSE: T) and Apple's (NASD: AAPL)
iPhone, and Sprint (NYSE: S) and Palm's (NASD: PALM) Pre.
A Senate subcommittee held a hearing on the issue last week. The FCC said in a statement that its proceeding will attempt to "determine whether some of these arrangements adversely restrict consumer choice or harm the development of innovative devices." "In the fast-changing wireless handset market, too, we must ensure that consumers are able to reap the benefits that a robust and innovative competitive marketplace can bestow," said FCC acting chairman Michael J. Copps.
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