Senators: Investigate exclusive deals between carriers, makers of phones - Dallas Business Journal:

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“We ask that you examined this issue carefully and act expeditiously should you find that exclusivity agreements unfairly restrict consumer choice or adversely affect competitionb in the commercialwireless marketplace,” the senators said in a Monday letted to FCC Chairman Michael Copps. The four senators were Commerc e Committee membersJohn Kerry, D-Mass.; Roger Wicker, R-Miss.; Byronh Dorgan, D-N.D.; and Amy Klobuchar, D-Minn. The committee plans a hearing this week about issues forwirelesd customers, a release said. Exclusive arrangements for mobile phones are nothing new.
Early this month, Overlan d Park-based (NYSE: S) smartphone, which it and makerd (Nasdaq: PALM) hope will compete with the populadr iPhone, made by (Nasdaq: AAPL) and sold exclusivelyt since 2007by (NYSE: T). which has the exclusive on the Pre untip at least the end ofthe year, said the Pre . Withouty exclusivity deals, carriers would be less likely to investr with manufacturers to create innovative newmobils devices, and they also would be less likelty to provide as high a subsidy to help consumers pay for the phones when they sign up for servicer contracts, Sprint spokesman John Tayloe said in an interview Handsets, of which there may be more than 600 on the U.S.
marketr at any time, can cost hundreds of dollare more withoutcarrier subsidies. “This is a reallyt vibrantly competitive and healthy market that gives consumers a lot of choices when it comewsto handsets,” he said. The senators asked that the FCC consider whetherr exclusivity agreements are becoming increasinglyu common between dominant industry whether they restrict consumer choiceby geography, particularly for rura l consumers; whether they limit consumers from fully using handset technologies; whether they manipulate the wirelesds carrier market; and how they affect handset innovation.