John Kerry trying to break up iPhone-AT&T alliance
Senators John Kerry (D-Mass.), Roger Wicker (R-Miss.), Byron Dorgan (D-N.D.) and Amy Klobuchar (D-Minn.) wrote to FCC acting Chairman Michael Copps June 15th to voice their concern about wireless dualopolies. They contend that exclusive deals between cell phone makers and wireless carriers are unfairly impacting competition and restricting consumer choice in the commercial wireless marketplace. Alliances like Apple's iPhone with AT&T and Palm Pre with Sprint are blocking compitition in the mobile space according to the complaint. They wrote:
"Based on this record, we ask that you examine this issue carefully and act expeditiously should you find that exclusivity agreements unfairly restrict consumer choice or adversely impact competition in the commercial wireless marketplace.
Kerry, who is chairman of the Commerce Subcommittee on Communications, Technology and the Internet, is also holding a hearing June 17 over the exclusive deals.
The subject of exclusivity agreements between wireless carriers and handset manufacturers will be a focal point of this hearing, and the record will help to determine whether legislative action is also necessary,"
One comparison made was to fixed line lines in the 70's. Until the government stepped in AT&T wouldn't allow other companies to build or sell phones that would work on its lines.
If you've been here a few times, you know that we are certainly pro-Kerry on this one.
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Comments (39)
I suspect that Verizon is secretly behind this. Some should start following the money. In any case, so long as this is a wider attempt to look at the ENTIRE market and not some attack on Apple, I'm all for it. But ... there is no way the government can force Apple to make a product compatible with some other vendors technology. Apple can simply say "We plan to make only GSM phones".
Great point about Apple producing a CDMA phone. I was going to write the same thing until I read your post. If government was really going to enforce such a thing a better way to do it would be to regulate the cellphone industry saying they must use "X" technology, but that would not go over well.
I hope they succeed.
Apple is teh innovator. Apple needs exclusivity for the profits it generates. Go back to Nam, John Kerry. Jealous? Maybe there's no ATT service in your state.
I've always thought these phone-exclusivity agreements seemed as a ploy to prevent carrier competition.
This exclusivity is bogus, I should be able to buy an iPhone and run it on any GSM network I choose (TMobile!).
Would you say it's Apples responsibility to include a radio that works on all gsm equipment, because if I remember correctly, the iphone wont work with TMobiles 3g in the US.
The government certainly has no right to say that Apple and AT&T can't have an exclusivity agreement. And no one is forcing me to buy an iPhone. I could go buy a Pre, or a Blackberry (Sprint Verizon etc). Apple has every right (as well as AT&T) to make an agreement to operate only on the AT&T network!
We have choices a plenty, I choose Apple's iPhone, in order to get it, I have to be with AT&T. That's the fact of the matter and it is not unfair.
Would it still be fair if they charged you $200/mo? $300? $400?
They could charge whatever they wanted to and people would pay the price, but that still doesn't make it fair.
Yes it will still be fair to charge 200$/300$ or even 400$ a month. If I can't afford it, I won't buy it. I'm not saying I don't hate the exclusivity between Apple and ATT but it doesn't bother me as well.
Now for the argument's sake, Neimen Marcus has polo shirts for 300-400$ and since I can't afford them, I usually buy mine from Macy's... I think it's the same comparison.
Apple needed exclusivity for control over the iPhone SDK so that carriers couldn't force their own craptastic software model. Now that the iPhone is a proven highly sought after commodity, the carriers need Apple so they don't lose customers. In turn Apple needs the carriers to expand the market and trounce the Blackberry.
As much as I would like to see the iPhone with another carrier other than AT&T, this is not the way to go about it. Might as well let the government make Apple to allow OS X on hardware from any manufacturer. The government already owns GM and now looks to be trying to taking over anything when they don’t like how the company is run.
Companies like Verizon and Apple always have to have the upper hand and will not back down, AT&T was a dying wireless carrier that “allowed Apple to walk all over them” with distribution of the iPhone. It’s just the way it is...
Yeah but also you can't force any handset manufacturer to make two different of the same phone. Are there two versions of the pre, voyager, instinct, storm. No this just the government trying to just have more control again in private business.
I love this guy, if you look back in history he's done some crazy s**t that benefits all of us... (search john kerry cia, this is my favorite)
How does this compare to the French, where long term exclusivity deals are a nono. After the 6 months are up, Orange will unlock your iPhone. Could something like this be on the cards?
it is about time. I was just thinking about this today and how it is totally unfair that i 1.) can not take my phone to another service provider. 2.) forced to choose from a small grouping of phones because my provider makes these exclusive deals for ad dollars. when that manufacture just makes crap phones. I am with Verizon so i really don't need to explain what i am talking about!
I also find it interesting that Verizon hasn't been hit with a Anti-Trust suit. VZ loads every (98%) of their phones with their crippled software but still claims they do not locked down their phone.
Examples
1.) Microsoft with their IE they were bundling with their OS's.
2.) Verizon with their VZ Navigator. (have to pay to use their POS browser!)
The point is. clearly the market has changed since the 90's and i should have some choices here without having to change providers.
AT&T is probably the only one not pro-Kerry on this one at this point... I think even Apple would love to move on from this deal, which was only useful back in the first days of the iPhone, when it wasn't sure it was going to be a success.
Now, I'm sure all carriers would offer similar deals. Apple could simply sell them the iPhone at $600 or whatever they need to cover manufacturing costs, then carriers could lower that price to whatever level makes sense for them (taking contracts into account). Everybody would win, except maybe AT&T.
Spectrum is public property. We should take it back and have the government responsible for mobile broadband infrastructure! Why let fat-cats get rich off of something we all collectively own, the airwaves? We'd get better service by focusing on one standard and lower prices.
Guys the real issue is you can't move your phone to another provider if you choose. iPhone should be unlocked, period.
Even is Kerry succeeds it will take Apple a year to make a CDMA phone which coincidentally is when the AT&T agreement would be over.
As for all cellphones being on a common platform, that will start next year as AT&T and Verizon both battle to be first with the LTE standard.
What would be a miracle is if Verizon actually got a phone that syncs contacts and calendar with a Mac.
If he did succeed, why would apple have to build a CDMA phone. Why wouldnt Verizon and Sprint have to adjust their network to GSM. I know it would cost them more to do that, but what makes apple have to bend to them and not the other way around. Just throwing that out there for sake of discussion.
This is a load of c**p. I hope that the government stays out of the whole thing. Hey John Kerry, cell phone ownership is a privilege, not a right. The fact is, there are several wireless companies and several cell phone manufactures. There is plenty of competition. The fact that one builds a better mouse trap doesn't mean you need to get involved. This is nothing but TYPICAL INTRUSIVE GOVERNMENT. Punish success.
Take a good look people and remember which political party most of these people come from.
Correct me if I'm wrong, but didn't Apple go to Verizon first and Verizon said thanks but no thanks? Boy I bet the guy who passed on that isn't working for them anymore. Sucks to be Verizon!!!
The government leases airwaves to these companies on our behalf. So, it's not government intrusion to put the companies on trial. These cellphone companies don't have any particular right to the airwaves. It's just the government letting companies get rich off of natural resources. Theoretically we should all own our one share of the airwaves. In practice, that would mean we would never have a mobile infrastructure, which is why they lease it to companies, who turn around and use our resources and make huge profit. I say we cut out the middle man and have the government (remember government is not a word for enemy, it's a word for "us" as in we the people collectively) run the infrastructure like they run the mail and trains, etc. Some things are better as public utilities and I think mobile broadband is one. We don't say it's intrusion that the government builds other infrastructures like highways, roads, bridges, trains, postal service, etc. What if they let companies buy up highways who then got to charge us for using them? And then the government wanted to look into why Joe Shmoe who got onto one highway couldn't get off of it because of an incompatible off ramp from another company.....OK maybe not the best metaphor, but you get the point.
its nice to see Frankenstein back in the news
Someone needs to do something before it's too late. This is the same as back in the 80's when land line cost so much, there needs to be a choice for everything so we all don't end up getting raped. If one company is able to do whatever they want they will. They know that there are enough dumb ASS people out there going to buy their product. (EG) iPhone 3gs.
It's the providers fault not apple. Before the.iphone consumers weren't purchasing snartphones or dome may say dumb phones. Consumers were buying flips with AT&T or verizons crap software. Apple brought a new game to town and now Everyone else is playing catch up. The service providers shoul only be able to make $$$ off there infrastructure while the phones and their software are made by someone else. Same thing with home Internet. You should pay for use of their infrastructure and be able to do whatever you want with it. Unfortunately the lobbyists are in bed with decision makers and this will never happen.
And for the record. It also is possible to make phones that operate under both standards. Meaning that manufactures could actually make one phone. i would be all for phones costing more if they were network interchangeable.
Apple shouldn't be forced to make a CDMA phone if they don't want to. I can understand pushing manufacturers to release unlocked versions of their phones but this to me isn't a government issue. There are plenty of other smartphones on the market that are exclusive to different carriers so there is plenty of market competition for your dollars.
What this will mean is that Apple and AT&T would be barred from locking iPhones.
Now, you're right, Verizon and Sprint won't get much out of this if Apple doesn't go and make a CDMA iPhone (which looks very unlikely).
What an idiot. We all know this is a move to fill someones pockets and that is it. All that motivates today is greed whether it be Apple, AT&T, Verizon or whomever. Oh, let's have the government fix it. That ALWAYS works.
pffft
How about the agreements with the government and its vendors....