FCC Eyes Rural Impact of Cellphone Tie-Ups

The Federal Communications Commission's inquiry into exclusive carrier deals on popular cell phones will focus on customers in rural areas who can't buy Apple's iPhone or Palm's Pre smart phone because the carriers don't serve their markets, FCC Chairman Julius Genachowski said Thursday. The FCC is asking whether exclusive handset deals are "promoting or hindering innovation" in the wireless sector, Chairman Genachowski said. How the FCC determines what spurs innovation in the handset market will be closely watched in the industry.