FCC to Investigate US wireless Network Operators

I previously blogged about the possible government review on wireless network operators on possible anti-competitive practices. Well, it appears that the FCC has already made it's move.

The FCC or Federal Communications Commission has decided to launch a formal inquiry into the wireless industry. The agency will look into the business practices being used in the industry. It will also examine how the large wireless network operators affect consumer choice.

The target of this FCC inquiry will be the major wireless network operators, AT&T, Sprint, T-Mobile USA and Verizon Wireless.

Exclusive deals between handset makers and carriers will also be targeted by this FCC inquiry into the the wireless network industry. Apparently, rural carriers have expressed their strong opposition to these exclusive deals. They do not have enough clout to make deals to carry the most popular phones so such practices should be illegal.

The FCC also wants to gain an insight into the general state of the wireless industry to see if current conditions in the wireless market allow for new entrants. If the the major wireless network operators have too much power then a new entrant into the industry have little chance of survival.

The results of this FCC inquiry into the the wireless network industry will be used as a framework for other investigations into other commercial industries. Other sectors such as cable and broadband are also scheduled to be examined by the government.

New FCC Chairman Julius Genachowski released this statement regarding the inquiry,

"I hope the new wireless competition report will help set a standard for fact-based, analytically deep analysis of the mobile industry. It is essential that the commission develop policies that encourage a new generation of innovators, working with new tools, on new platforms, and having an extraordinary impact on our economy and society"

Well, this is certainly interesting. The wireless industry has always defended its practices, pointing out that they offer consumers a wide range of choices of network operators, handsets, and service plans. We'll see if the inquiry brings any improvements that would benefit all consumers.

That's it for this post on the FCC inquiry into the mobile phone carriers. Tune in to this blog to get the latest news and updates on wireless networks.