AT&T and Verizon Wireless Anti-Competitive Practices Review

Trouble might be brewing for both AT&T and Verizon Wireless. According to the Wall Street Journal, the Department of Justice has begun looking into large U.S. telecommunication companies such as AT&T Inc. and Verizon Communications Inc. to see if any abuse of market power is happening.

Now, there is no cause for alarm. This process is still very much in its infancy and an actual investigation may not be even be opened. However, it is interesting to see that the government is looking into the matter. This tough stance by the DOJ appears to be a reflection of the Obama administration's aggressive stance on antitrust enforcement.

The AT&T and Verizon Wireless anti-competitive practice review seems to have originated from suspicions within the DOJ. Apparently, the massive growth achieved by these wireless network operators have led some to question if it might detrimental effects on smaller competitors and consumers.

Large wireless network operators like AT&T and Verizon Wireless have huge power and influence in the market, this means that they are capable of stifling their competition.

The AT&T and Verizon Wireless anti-competitive practice review will also focus on other areas like the exclusive handset deals. Some wireless network operators have exclusive rights to some high-end handsets and it might be prevent smaller carriers from offering a fair challenge. For instance, AT&T has the iPhone and Verizon Wireless has the BlackBerry Storm.

The DOJ is also looking into the limitations on what third-party companies can do using carriers' data networks. Allegedly, some wireless network operators are blocking certain media download and VoIP apps to prevent legitimate competition from rival services.

Well, I think this news is very interesting. An investigation would expose some unfair practices by the carriers. If there are any. I would really want the government to look at exclusive handset deals. Maybe it would lead a Verizon subscriber like me getting a CDMA iPhone.

That's it for this post on the AT&T and Verizon Wireless anti-competitive practice review. Tune in to this blog for more news and updates on wireless networks.