It’s certainly an annoyance for many cell phone users - the idea that you have to switch carriers if you are intrigued by a particular phone. Want an iPhone? You have to sign with AT&T. How about the new Palm Pre? Call Sprint. Maybe you’d like a Blackberry Storm. Welcome to the word of Verizon.
These exclusive deals are certainly popular these days and that doesn’t look to be changing anytime soon - at least not if the wireless carriers can help it.
But maybe they won’t have a choice. Sen. John Kerry (D-Mass) made a bit of noise in this arena on Tuesday when he raised the subject on a blog post at SaveTheInternet.com.
Here’s the issue I think we need to wrestle with: wireless service providers are largely deciding what phone you can use. We don’t see that happening in similar markets.
Your broadband provider doesn’t decide what kind of computer you can connect to at the end of your DSL or cable wire. And forty years ago, the FCC ruled in the historic Carterfone decision that AT&T couldn’t pick and choose which phones can and can’t connect to its network.
Is the status quo the right model for maximizing innovation, competition and consumer choice? Or do we need a change?
Kerry plans to bring the subject up for discussion during hearings of the Senate Commerce Committee. He’s seeking public comment.
Obviously the wireless carriers aren’t going to be too thrilled by this talk. But wait. If it means wrestling the iPhone away from AT&T, perhaps Verizon and Sprint will become fans of more government intervention.
On the consumer side, I’m having trouble imagining any reason for the average cell phone to oppose an end to these exclusive deals. Who votes against having more choices? But maybe I’m missing something.
