Loading ...FCC to look at exclusive cellphone deals
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
Filed under: Technology News
