Verizon Offers to Shorten Exclusive Time for Phones
Sat May 09, 2009 7:53 am
Verizon Wireless is giving smaller rural carriers a better chance to sell up-to-date phones by offering to cut the period in which it demands exclusive rights to new handsets from Samsung and LG.
Two months ago Verizon Wireless, the nation's largest wireless carrier, offered to let Samsung and LG sell their handsets to rural carriers six months after the phones' initial launch.
But the rural carriers, represented by the Associated Carrier Group, haven't accepted and don't think the offer is good enough.
They have complained that nationwide wireless providers like Verizon and AT&T routinely lock up popular phones with exclusivity periods that can last for years.
In particular, AT&T's arrangements with Apple have come under fire. AT&T is still the only provider to carry the iPhone in the U.S., almost two years after the first model was launched. In addition, AT&T is currently in talks to extend its exclusive deal with Apple to 2011.
ACG said Verizon's move is encouraging, but in practice, its members can't start selling handsets six months after Verizon. They need to modify the phones' software to work on their networks, which takes more time.
Victor Meena, chief executive of Cellular South, told a U.S. House subcommittee hearing on wireless competition that "the situation with exclusivity agreements is bad and is only getting worse."
