FCC investigates Apple iPhone exclusivity deal with AT&T
One topic that has been picking up some steam is around the exclusivity deals cell phone manufacturers have with the wireless carriers. The most notable case is that of the iPhone with AT&T. It seems like things may finally start to heat up as the FCC will be stepping in to finally investigate the matter.
Many consumers complained when Apple revealed that the iPhone would only be available with AT&T. Considering the the demand for the iPhone, many saw this exclusivity deal as a way to get consumers to jump ship from one carrier to AT&T rather than providing consumers goods to satisfy demand.
It has been reported by AT&T that approximately a quarter of the original iPhones shipped have been unlocked for use on other carriers. This proves that there is a huge vacuum in the market that Apple has created by exclusively dealing with AT&T. According to PC World, four U.S. Senators that are on the committee overseeing the FCC have banded together to launch an investigation into the practice of cell phone manufacturers entering into an exclusive deal with wireless carriers.
FCC Chairman, Michael Copps has agreed to look into the matter and make the necessary changes. However, since Copps has been reallocated to other duties, the new FCC chairman, Julius Genachowski will be taking over the investigation. Genachowski, who is President Obama’s pick to chair the FCC, has indicated that he supports the investigation into the matter as well.
Its interesting that Copps indicated that handset exclusivity arrangements have become more prevalent in recent years. However, handset exclusivity arrangements have existed for over a decade. I suppose the fact that the iPhone is so popular brought the issue into the limelight. Regardless of the reason, the fact this topic is finally getting some attention is most definitely welcomed.
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February 7th, 2011
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