Rural carriers petitioning FCC over exclusive handset deals

Posted on 23 May 2008 by Chris Davies




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It is a very common practice for carriers to work with a manufacturer to get exclusive deals on new devices. Every one of the national carriers employ this practice. It gives people another reason to switch carriers, and ensures current subscribers renew contracts in order to get that device they have been checking out at the local retailer.

Well it seems not everyone enjoys this carrier manufacturer relationship, as a petition has been filed by the Rural Cellular Association. According to the petition, the exclusive deals that exist are not only anti competitive, but are a borderline monopolistic practice. Several devices are specifically mentioned, and of course one was the iPhone.

Other devices named include the Voyager, a touch screen device on Verizon, and the Samsung Ace, a world phone Windows Mobile device based on the Blackjack, offered by Sprint. The petition does have a good point though, saying that since many nationals do not offer adequate coverage in rural areas, some customers have no choice but to be with the smaller carriers. The petition claims these subscribers should not be left out in the cold when it comes to new handsets.

[Via eWeek]



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