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.

AT&T Wireless Responds Governemnt Review

A few weeks ago, I blogged about the Department of Justice has begun looking into large U.S. telecommunication and wireless networks for possible anti-competitive practices. AT&T Inc. and Verizon Communications Inc. were said to be the main target of the government review.

Apparently, Sen. Herb Kohl's congressional panel is in-charge of reviewing potential anti-competitive behaviors of the country's largest providers of wireless network services. There are concerns over texting prices, roaming disputes, disputes over spectrum and exclusive access to popular phones.

However, AT&T is not going down without a fight. The carrier immediately decided to make a response to this information on the anti-competitive practices review to be conducted by the DOJ.

James Cicconi, an AT&T senior executive vice president, delivered a statement in defense of his company. The AT&T senior executive vice president indicated that charges of anti-competitive practices by US wireless networks are unfounded. He stressed that the prices of U.S. wireless are much lower than in any other major industrialized country.

Cicconi also argued that exclusive handset arrangements are standard practices. Exclusive access allows a carrier and a manufacturer to split the high cost of marketing. The case is similar with early termination fees that help wireless networks to recoup money spent discounting handsets.

Well, this is certainly interesting. I hope that a review will bring about pro-consumer policies. I wonder why Verizon Wireless did not respond to this anti-competitive practices review. AT&T decided to take action quickly and their response make sense.

However, an inquiry into practices will only help consumers in my opinion.

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