FCC was requested to establish Apple- AT&T like exclusive deals are unfair

June 16, 2009 - 6:41am | Law aspects | News |
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FCC was requested to establish Apple- AT&T like exclusive deals are unfair
A number of US senators including Democrats John Kerry, chairman of the Senate Commerce Subcommittee on Communications, Technology, and the Internet; Byron Dorgan of North Dakota; Amy Klobuchar of Minnesota and Roger Wicker, a Mississippi Republican, singed a letter to Michael Copps, acting chairman of the Federal Communications Commission (FCC), where they asked the regulator to consider if there is violation by the wireless carriers and cell phone makers in their agreements on exclusivity.

The lawmakers want to know how such deals affect competition and choice in the marketplace saying that they are very concerned about this issue. Some of such exclusive deals include the contracts between Apple Inc and AT&T Inc as well as the deal between Verizon Wireless and LG Voyager.

"We ask that you examine this issue carefully and act expeditiously should you find that exclusivity agreements unfairly restrict consumer choice or adversely impact competition in the commercial wireless marketplace," they wrote.

Earlier the Rural Cellular Association, which represents more than 80 rural wireless providers, filed a complaint calling upon FCC to look into how the arrangements affect consumers.

Senators asked the FCC to establish if such deals were becoming prevalent, limiting consumers' ability to take full advantage of handset technologies, manipulating the competitive marketplace between commercial wireless carriers, and playing a role in discouraging innovation.





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