NEW YORK – Regulators will investigate whether exclusive cellphone 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’s iPhone is a much-noted exception. Dallas-based AT&T 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.

Full Story Via USA Today

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