Consumer groups tell FCC exclusive handset deals limit competition

Late last week, a group of public-interest groups reiterated how they believe the Federal Communications Commission should address handset exclusivity arrangements. "Handset exclusivity arrangements are harmful to consumers," the Ad Hoc Public Interest Spectrum Coalition told the agency. "These anticompetitive practices limit consumer choice, raise consumer prices and limit innovation in the device market. The arrangements tie together the markets for devices and services, allowing the market power of wireless carriers to invade a competitive market for devices and to use successful devices as hooks to reduce competition in the wireless services market — they function as artificial restrictions on competition in both wireless service and wireless devices markets." As such, the Consumer Federation of America, Consumers Union, Free Press, Media Access Project, New America Foundation, Public Knowledge and U.S. PIRG urged the FCC to initiate a rulemaking with an eye to prohibiting such handset exclusivity arrangements. Last year, the Rural Cellular Association petitioned the FCC to investigate exclusive contracts between top wireless providers and handset manufacturers.