FCC Probe of Wireless Carriers
The FCC has is launching an investigation to determine if there is "adequate" competition amongst carriers such as AT&T and Verizon. In the 5-0 vote, the commission will pursue such this question in addition to an investigation already underway to see if exclusive contracts, like the Apple iPhone with AT&T harms consumers.
The commission with look into three areas of interest
- The CC inquires about which analytic framework and data sources will most clearly describe competition in the mobile wireless market.
- The inquiry will include new market segments not covered thoroughly in previous reports, such as device and infrastructure segments.
- The vertical relationships between "upstream" and "downstream" market segments, and how these relationships affect competition.
The release on the FCC site, does not indicate a forum for public comment though letters to the commission would be our recommendation.
Exclusive distribution deals are common in various sectors though its is different then just buying a hard drive from one on-line supplier verses a large box retailer as there is an on-going relationship and reliance with service as is the case with the wireless carrier. In addition, as the commission said in its release, "wireless mobility has become central to the economic, civic, and social lives of over 270 million Americans"
Do these numbers and the reliance on mobile technology raise the bar to where wireless carriers should be considered vital national interests such as airlines? Should carriers be prevented from practices that inflict economic harm to consumers? They already practice an informal economic pact of matching and maintaining price levels, is this a form of price fixing? What about choice, should carriers be able to dictate what platforms people have access to? Its not just a simple matter of moving from one provider if you're not happy.
For example, Verizon appears to have more robust coverage in and around New York City, but on the other hand they have a history of being very slow to deploy new handset technologies though they will claim they provide more testing to ensure compatibility with their network. I've heard this statement several times when visiting retail stores, does this mean the iPhone is not a mature and stable platform?
Should consumers be able to purchase the platform of their choice and use it on whichever network they feel provides the best coverage and customer service, well yes..
