FCC to focus iPhone, Pre probes on unserved markets
With a new Federal Communications Commission head who’s said reversing the abuses of the Bush administration and insuring competition are top priorities, it’s obviously a new day in Washington for mobile wireless and broadband internet.
Bloomberg is reporting comments by FCC Chairman Julius Genachowski indicating the direction that the agency’s probe of exclusive carrier handset deals will take. Specifically, he said investigators will look at whether the deals prevent the devices from showing up in unserved markets.
“There are markets in the country where if you wanted an iPhone, if you wanted a Pre, you just couldn’t get it—from anyone,” Julius Genachowski said. “So one question is, is that consistent with broad consumer interests?”
The agency also will consider if innovation is promoted or hindered by exclusive arrangements such as those that limit the iPhone to customers of AT&T and the Pre to Sprint Nextel subscribers. This probe comes at the urging of four powerful senators.
Who’s your daddy?
AT&T has said exclusive agreements foster competition and help lower prices by sharing the risk and expense of handset development and roll out between two companies.
For its part, Apple has said that iPhone jailbreaking (ie hacking it so it can be used on other networks) threatens cell phone towers and thereby the national infrastructure, essentially equating unofficial, customer initiated alternate use with terrorism. This is perhaps the most absurd and embarrassing thing I’ve ever heard Apple say.
“Promoting competition is absolutely a main function of the FCC,” said Genachowski. “There’s absolutely a sense of urgency in Congress, the White House, here at the agency, that we need to make sure that the United States communications infrastructure is appropriate for the 21st century.”
Over the eight years of the Bush Administration, US competitiveness in broadband internet suffered greatly with the nation that invented the internet and broadband falling to 15th place worldwide. The availability and cost of broadband, especially in unserved or underserved rural areas—a recurring theme for country’s telecos—are uncompetitive in the extreme by world standards.

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Filed under: Corporate news, iPhone, iPod



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