FCC to look at exclusive cell phone deals

[popdog54]

http://tech.yahoo.com/news/ap/200906...clusive_phones

FCC to look at exclusive cell phone deals

• By PETER SVENSSON, AP Technology Writer - Fri Jun 19, 2009 1:10PM EDT

NEW YORK -
Regulators will investigate whether exclusive cell phone deals, such as the one that locks the iPhone to AT&T, are good for consumers.
The acting chairman of the Federal Communications Commission, Michael Copps, has instructed the commission's staff to review exclusivity arrangements.

"In the fast-changing wireless handset market ... we must ensure that consumers are able to reap the benefits that a robust and innovative competitive marketplace can bestow," Copps said Thursday at an industry conference in Washington.

Carriers generally negotiate exclusive deals that last six months to a year, after which other carriers can also sell the phone model to their customers. By launching with only one carrier, the manufacturer gets a higher price or extra promotional spending on the phone.

Apple Inc.'s iPhone is a much-noted exception. Dallas-based AT&T Inc. has been the sole U.S. carrier since Cupertino, Calif.-based Apple launched the first model two years ago, frustrating consumers who want to use it on another carrier.

Handset exclusivity was one of the subjects of a Senate Committee on Commerce, Science and Transportation hearing this week.

Barbara Esbin, senior fellow at the Progress & Freedom Foundation, a think tank that generally opposes government intervention, told the committee that exclusive arrangements help manufacturers bring new devices to market quickly and gives the carriers incentives to promote and subsidize them.

Competing U.S. carriers have found touch-screen phones from other manufacturers to compete with the iPhone, but none has come close to equaling that phone's cachet. The third model, the 3G S, went on sale Friday.

Verizon Wireless offered a few months ago to shorten its exclusive periods for new cell phones from LG and Samsung to six months, from as long as a year, to give small rural carriers a better chance to sell up-to-date phones.

The rural carriers rejected the offer as insufficient.

[mbaseball3]

in a way I agree and would be ok with the 1 year exclusivity for a model phone. like the Iphone, att and all other carriers fight for the first year deal, then its up for grabs after that. same goes with that phones following gen change or what not. plus, I think it was dumb for apple to agree to one carrier only. from a business standpoint, if phone a is better than phone b, why not do all you can with phone a to blow phone b out of the water? if apple made carrier specific phones for more than one carrier, no doubt in my mind that apple iphone would be huge majority of purchased phones. most likely everyone would have one. better business for apple? maybe they didn't see it that way? or maybe they didn't want to deal with multiple carrier specific phones?

[Snoman002]

Interesting read, thanks for the info.

Personally I dont think I agree with the Gov stepping in and trying to controll a deal between two companies, unless such deal creates a monolopy which the iPhone does not.

As for the iPhone on ATT only, I think Apple likes it that way, it makes them exclusive. Look at the Apple computers, they are not limited to carriers so to speak, but they are exclusive in price. Keeping the iPhone exclusive maybe convinces those who buy it to put up with its defects, instead of whining and complaining like mass consumers usually do.

[Dr.8820]

i'm just curious but as much as people bash the iphewy, if it came to sprint, would anyone suddenly change their mind? (things that make you say 'hmmm')

[nxtech3]

I wouldn't buy an iphone,even if sprint started selling it,its old, and doesn't do anything more special than my pre

[mbaseball3]

Iphoney does nothing that a winmo phone can't. that's why I laugh at all the bandwagoneers! seriously I'll call out any iphone user to debate with any winmo user in the forums! everyone went with iphone cause it was shiney and simple. there's nothing but simplicity with that paper weight. no fun ui. boring as piss! buddies of mine have em and they attempt to show it off, I show off right back. cept our phones have backgrounds fun menus eye candy basically. apple made a phone for monkeys to use with its single push navigation. love how we're out of the masses and in our own little community of complex multi tasking. ha! should be apples new slogan; its so easy to use, a monkey can do it! buy the iphone! lololol

[Rabid_Gypsy]

I think that this is bogus, what makes the gov't think they need to do this? If I want the new shiny toy but my carrier doesn't offer it, I chooses to drop my carrier or wait for them to get their own even newer shiny toy. Is the gov't going to pay manufacturers extra money to not be exclusive? Or just force the consumer to pay more because the carriers aren't going to subsidise the phone as much because they aren't drawing in new customers from other carriers? What's next? Every manufacturer has to build a GSM and CDMA handset and release them at the same time?

[gator352]

If a carrier designed,engineered,manufactured, and sold it's own branded phone, then yeah. That phone should be exclusive to itself, but that isn't the case. Most of the manufacturers design a phone and sell that design to the carriers. Then they come up with key differences to make it unique. Such as the TP, Diamond, etc. But it is soley up to that carrier to buy and sell that phone. They don't have too though. That's what makes competition and a free market.

In cases such as the Pre and Iphone, they shouldn't be able to hold onto the rights for x amount of time. Maybe the rights to release it first for say a month or two, but not a year or even exclusively. Technology changes way to fast and a year can be eternity in this market.

In apples case, I blame AT&T more than I do apple. It would be better for business as they would or could triple thier revenue. Look at the Ipod, it's open and readily available. But on the other hand, I think they are doing shady business.

My two cents is that NO carrier should be able to sell a phone exclusively unless they design and manufacture it themselves. If the carrier chooses not to sell a particular phone you want, then change carriers to get that phone. But holding exclusive rights to 1 phone and 1 carrier is indeed a monopoly FORCING you to be on a specific carrier and not one of your choosing.

[BenC]

What it really is - showing you that Congress is there by your side. Sure.

[robertrulez]

this would be awesome if it actually happened

im sure nothing will come out of this, the corporate funded lobbyist will do anything to stop this from happening


I would love an iphone on Sprint, that would be amazing! Probably the best phone in the US.