FCC to Probe Wireless Industry, Could Spawn New Regulations
Thu Aug 27, 2009 11:16 pm
The Federal Communications Commission has officially launched an inquiry into the practices of the wireless industry, a step that could lead to more regulations intended to push down prices and increase choices for consumers.
"Wireless mobility has become central to the economic, civic, and social lives of over 270 million Americans," the FCC said in a statement. "The FCC is seeking to ensure that competition in the mobile wireless market continues to bring substantial benefits to American consumers."
The five FCC commissioners voted unanimously to open an inquiry into the state of competition in the wireless industry.
The regulatory body is facing increasing pressure from Congress to investigate common practices in an industry dominated by four national carriers -- Verizon Wireless, AT&T, Sprint and T-Mobile -- which include exclusive deals between handset makers and carriers, such as Apple's iPhone agreement with AT&T.
Exclusivity agreements are common among the largest carriers but the practice is facing mounting opposition from rural rivals which say they lack the clout to make similar deals.
"Competition is important for many reasons, including, of course, that it produces low prices and high quality for consumers," said Julius Genachowski, the FCC's chairman. "But competition is also the mother of invention, which makes it especially important in a fast-changing marketplace like communications."
The FCC has already sent a strong signal that it intends to correct potential problems in the industry.
Apple told the FCC it is still studying the Google Voice app and is not conspiring with AT&T to ban the software from its handsets.
"It is essential that the commission develop policies that encourage a new generation of innovators, working with new tools, on new platforms, and having an extraordinary impact on our economy and society," Genachowski said.
The FCC also issued an inquiry into expanding so-called "truth-in-billing" rules, which require carriers to clearly describe charges on consumer bills.
"We are transitioning from a voice-centric world to a world of ubiquitous, mobile Internet access," said Genachowski. "This transition promises to increase the pace of innovation and investment, but only if we have an open and competitive marketplace."
