The acting head of the FCC announced last Thursday that the FCC would soon be examining the legality and competitive nature of exclusivity periods for new mobile phones.
The announcement (PDF) comes just days after a Senate subcommittee took competing arguments considering whether or not deals like AT&T’s long-running iPhone monopoly or Sprint’s Pre exclusivity is harmful to consumers. FCC chief Michael J. Copps has instructed the bureau to begin looking at these arrangements to ensure that consumers are truly receiving a competitive market.
The second “other telecom issue” I want to touch upon, and which is much in the news recently, is exclusive arrangements between wireless carriers and handset manufacturers. 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. I appreciate the concerns that have been expressed on Capitol Hill and elsewhere, and I agree that we should open a proceeding to closely examine wireless handset exclusivity arrangements that have reportedly become more prevalent in arecent years, and I have instructed the Bureau to begin crafting such an item.
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