Senators Request Probe Into Exclusive Carrier Deals

[JMcEntegart]

A report on Reuters today says that several U.S. senators are urging anticompetition regulators to review exclusive arrangements regarding mobile handset technology between wireless carriers and cell phone makers.

Senators Request Probe Into Exclusive Carrier Deals : Read more

 

[vohnvest]

wont some phones still not work with other networks by design?

 

[jerreece]

Finally!!

 

[chripuck]

[citation][nom]jerreece[/nom]Finally!![/citation]

You really don't get it do you? In exchange for exclusivity these companies (Apple, Palm, Blackberry) get money towards development of the new phone.

If anything this will potentially stifle innovation because companies will be less likely to dump as much of their own money into a phone...

 

[suppliesidejesus]

Not necessarily, as many cell phone manufacturers make both CDMA and GSM versions of their phones. I would LOVE to see all phones starting to come unlocked instead of a choice few.

 

[greenskye]

I figured most exclusivity deals were natural outcomes due to the differing technologies employed by the networks. Would manufactures be forced to make the same phone 4 times so that they all worked on all networks? As much as I'd love for verizon to get some more phones this doesn't make much sense.

 

[Guest]

There's no question -- these linkages are anti-competitive. Congress should take action.

 

[hellwig]

As SSJ stated above, there are two major network technologies, CDMA and GSM. Most phones are already made for both technologies. Remember, just because the iPhone is AT&T only in the U.S., different carriers have the exclusivety in other nations, and they probably don't use the same exact network technology.

Look at BlackBerry, they've been available for every network forever. Look at the Motorola Razr, name a company that didn't offer a Razr at some point. Look at every "free with new plan" Nokia or Samsung. Obviously cell phone companies are more than capable of making phones for every and any carrier out there.

Exclusivity agreements are about one thing, profit. When companies consipire to limit consumer freedom for profit, then it becomes a matter for the government. There's no proof that's what is happening here, but that's why the FCC has been asked to look into this.

 

[Guest]

here in brazil, all phones must be unlocked since last year, prices have dropped a lot.

 

[Dave_69]

Congress should take action

Disagree. Every time Uncle Sam gets involved in business, it backfires. Let the markets choose what to do. You and I ("consumers" or "demand") are a better gauge for what should be bought/sold than a group of Harvard lawyers posing as this nation's "leaders."

 

[dark_lord69]

[citation][nom]chripuck[/nom]You really don't get it do you? In exchange for exclusivity these companies (Apple, Palm, Blackberry) get money towards development of the new phone. If anything this will potentially stifle innovation because companies will be less likely to dump as much of their own money into a phone...[/citation]
You really don't get it do you? These companies make billions. You really think it costs $500 for some dude in china to make an iPhone? NO! These companies are insanely rich and if you really think they NEED that money for "innovation" then you are the one that doesn't really get it.
THIS IS A GOOD THING! CELL PHONE MAKERS AND COMPANIES CAN GO F* THEMSELVES!!

 

[squatchman]

Given that the top end smart phones from every carrier all, aside from the iPhone and its restrictions, have almost identical feature sets I need to think that this looks more like a case of federal employees trying to look busy than a genuine concern for voter's rights.

I'll be the first in line to condemn US carriers for bizarrely high usage costs and needlessly binding contracts, but I don't see how the availability of a luxury affects US voters.

 

[the last resort]

i think the government should spend more time looking into antitrust related things for Apple, with their "only our software, on only our hardware" marketing.

 

[Airrax]

Chipruck, I don't think you get it. A company may put forth a bunch of money to help design a new phone, but it's the network that suffers. Take a look at the iPhone. The iPhone is one of the most advanced phones in the US...and it's on one of the slowest networks (if I remember correctly, the slowest). Having a diversity in phones is all well and good, but as cameras get bigger and songs become less compressed (not including business applications here), the real problem isn't having a cool exclusive phone, it's having a crappy wireless network. If all phones were offered by all carriers, the carriers would have to single themselves out by upgrading their network. I don't know about anyone else, but I'd rather have a fast, reliable network than a flashy phone that does way more than I need it to.

 

[tayb]

Anyone here ever purchased an unlocked phone? Anyone?

 

[repairdrone]

The Iphone is like a drug. Once you get it, you are hooked. It’s too late by the time you realize that the “dealer” (ATT) and the “maker” (Apple) have you on hook. There is a monopoly here. Apple just needs to realize that other dealers offer better services. As much as I hate anything gov since it’s so inefficient and restrictive, I agree in this case ATT and Apple need their cages rattled by the gov. And yes, I hear the people that say “get a life”, it’s a toy, you don’t need this for a phone. But there is a sense of injustice here and if the gov can at least get the wheels spinning on change I am for it.

 

[accolite]

It's about time they tried to do something about it!

 

[crisisavatar]

I am not exactly sure about how I feel about this or rather I don't think there is a major issue regarding this that requires stepping in.

 

[Master Exon]

I wonder how many of the readers here know that in Europe, you buy the phone first, then the SIM card of the provider of choice. Paying for texting is practically unheard of in Europe.

 

[SamanuelMC]

[citation][nom]chripuck[/nom]You really don't get it do you? In exchange for exclusivity these companies (Apple, Palm, Blackberry) get money towards development of the new phone. If anything this will potentially stifle innovation because companies will be less likely to dump as much of their own money into a phone...[/citation]

You don't seem to get it either then. In some other countries around the world, like China, the public is able to first choose they're phone and then their carrier. This leads to the telecomm companies fighter harder for your money, resulting in better plans for the mass consumer. Interesting the big bad communist China seems to be ahead on the capitalist curve when it comes to cell phones.