FCC formally launches inquiry into wireless competition
By Joseph L. Flatley 
posted August 27th 2009 3:28PM
posted August 27th 2009 3:28PM
[Via Phone Scoop]
posted August 27th 2009 3:28PM
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Government is already involved in wireless carriers, it has to be. Cell phones require using part of the radio spectrum, which has to be given out by the FCC, the alternative would be a chaos where nothing works. Any business involving the national infrastructure SHOULD have government oversight, since the competition is necessarily limited by it and by the laws of physics.
It's not their products, they are renting the airwaves FROM US. Which means it is our business.
Free markets are great. Collusion is meant to prevent free markets.
What do you expect, they voted in a Socialist President and have backed EVERY socialist plan he's come up with, this is all part of the greater socialist plan to control everything
McDonald's should be forced to sell Whoppers.
We don't want to force McDonald's to sell Whoppers. We do want the rule for McDonald to sell Whoppers if they want too and also pay Burger King for that rule.
...with the end result being your Whopper will be $27, no matter where you buy it.
No, McDonalds should be forced to sell the McRib all year long... Mmmmm, McRib!!!
Hamburgers are a product that is consumed, so it is a poor analogy to a phone, which does not just disappear once used. Hamburgers are better compared to wireless service, and no one is asking to force Verizon to supply GSM or AT&T to supply CDMA.
Your analogy would be more accurate if eating a hamburger required something, and that thing was specific to the restaurant you bought the burger at and was more expensive than the burger itself.
I agree - all companies should be forced to sell those sweet, delectable maltball treats so I may purchase them at my convenience.
I'd usually take the conservative stance on an issue like this, but somethings going on under the table with wireless and broadband providers. 5 years ago they speculated that DSL vs. Cable would drive broadband rates down, but now they're as high as ever. Wireless is the same. In the US we pay more per MB than most developed nations and its getting out of hand. For once I can commend the FCC on a job worth looking into.
It isn't a capitalistic market. The nature of wireless communication, where are are only a limited number of frequencies, prevents the market from being a free one. There are only a fixed number of resources that the government licenses to the highest bidder! The government is involved from the very first step, thats why the prices are so high. If you want to expose real free market pressure on the carriers, make all the frequencies public domain. Then, see the carriers crying to the government that their wireless networks don't work cause of interference!
The cornerstone of capitalism is private ownership of property and assets. Making the whole spectrum public domain would be the complete opposite of capitalism.
I would rather them focus on the charges for text messaging rather then exlcusive partnerships between carriers and phone makers. The FCC needs to focus on lined services of telephones and television a hell of a lot more then cell companies. Decent HD television service with HBO or other pay channels ranges from $75 to $100 a month. Then if u get internet service from same company thats an extra $30 to $40 a month for using the same data pipeline. The same is basicaly true for home phone service $30 to $50 a month. The FCC was supposed to looked into that last year but never did. They need just charge for data like earlier was said about cellhones. HD extended Cable television plus internet should be about $69.99 a month. Cellphone service should be about $59.99 for unlimited voice,data, and text.
It's about time!!! The price fixing is so obvious in that industry!!! Rates never go down, even with new competition!!!
well this is good its like that editorial that i think that nilay wrote. I don't want to have to deal with all of these companies crap. I just wont them to make the best product possible.
Finally! They should also take a look at the absurd rate for text messaging in this country. Such a scam! And if you are paying for an unlimited plan you should be able to hook up your phone to your laptop and use it as a modem (legally).... if the internet is free we should be able to use it as we want.
I like what US Cellular does.. Free incoming calls and SMS. If that is a result of this probe, I'll be happy.
I don't think you are going to get anywhere on device exclusivity as long as there are multiple types of networks.
TEXTING = $$$$ and gauging the customer!!!
I just switched cell phone plans, and, I have to say, it was bizarre how closely they all matched up. I did decide to make a switch of course, so I guess there was some difference, but not a lot. There were little differences, but it was all so close. It kinda all worked out to being the exact same. I can't help but think there must be some level of collusion going on.
I remember when it felt like the competition between cell providers was fierce, but now it just seems like an ad war, not a deal war.
Let there be light!
You must be blind not seeing all these. GV has a free SMS capabilities. Which means, AT&T will get screwed. $5 the minimum multiply by number of users, let's say 1 million customers...
Let there be light!
You Americans are lucky. We have it even worse here in Canada. Our plans are more expensive and our contracts are longer. ex. 3 years contracts on both the iPhone and Palm Pre, instead of 2.
I also hope they look into all these extra fees & surcharges. A $90 cellphone bill nets you a total of $106 with fees & surcharges (must I say which phone company this is?)
Ooh! Ooh! How about this:
Text messages being charged to you even fi you don't want them! Someone sends me a bunch of texts I do not request, guess what- they count against my 200 limit.
Or what about this- cell phone companies claim that contract lengths are so that they can subsidize the cost of the phone. but i you buy the phone outright with no discount, you do not get a lower rate- just no contract length. And yet, at the end of the 2 year contract you can switch carriers- what now bitches? You mean to tell me that you are going to subsidize the cost of a phone for no real cost benefit- yeah- that sounds like verizon.
Oh- and then on top o that, the ET fee for breaking a contract is the same 1 month in as it is 23 months in- hmmmm....... sounds like that "we have to recover the cost of subsidizing the phone is bullshit."
And anti-competitive, monopolistic practices- free calls if you call in network? Show me one actual cent of extra accountable cost the cell phone companies charge each other for, well calling each other. Again, total bullshit.
Making decisions to allow/dissallow applications to run on your network or not- and then advertising an open application community- riiiiiiight.
Fact is, I have a real problem with one particular thing about these cell companies- they are trying to be both common carriers and content providers, regulating content. The days of cell networks being an oddity or something luxurious are over. They are nothing more than utility companies and they should be treated like them. The electric company can't tell you not to use a certain brand of television, why the hell can Att-pul tell me I can't stream slingbox over their 3g network? I pay for an advertised unlimited data plan, a requirement for owning the phone. but you and Apple have a previously undisclosed agreement to to "redirect a television signal" over the 3g network? I'll redirect my foot up your ass...
And why is that data plan required again? What if I want to use only wifi for my data connections? What- is it costing you too much to not charge me for the data you allegedly give me in unlimited doses, but really don't?
Damn FCC... i was hoping to litigate some class action in a few years... you might fix things first...
They need to force Apple/AT&T's hand and make them allow Google Voice into the App Store. Right now, AT&T has a monopoly on text messages over its network and their gouging us as a result. Switching carriers will do nothing because the industry is one giant oligopoly, which is blatantly clear from the orchestrated raising of text message pricing by all carriers within the same period of time. Google is a competitor in the text messaging market, and they do not want to let Google in. If Google Voice was allowed into the app store, we could send unlimited text messages over data and, this is key, receive push notification when we have a new text message. It'd be virtually indistinguishable from the carrier's text messaging and you'd be able to drop your text messaging plan while gaining unlimited text messaging from Google.
Capitalism without competition is useless to the general public. Competition spurs innovation, while lack of competition stifles it.
Capitalism needs socialism/socialism needs capitalism and as long as there is democracy everything will balance themselves out. Americans may want to ask if there is fair competition within it's political democratic system. (ie 2 party system which blocks outside parties voices in mainstream media)
Net Neutrality is important for this very reason so voices get the same speeds and privileges as the mega media corporations. Each "website" will be a "T.V. channel" able to stream it's content and compete with the likes of CNN, ABC, CBS, FOX as well as all other big media who feeds it's brainless propaganda our way.
Let hope the FCC sees it my way, or should I say the will of the peoples way.
Wow, really? Although I wanted to say "It's about time," who allowed the mergers in the first place, resulting in fewer players on the market? *sigh That, and the endless consumers that keep giving these carriers money regardless of how crappy their services are.
I don't care about hardware exclusivity agreements, I wanna know why the supposed "competition" hasn't led to lower data and text plan rates. Heck texting costs recently went UP. Considering they lack of overhead for SMS infrastructure its allready ridiculous that it costs more to send a text per byte then talk to the hubble telescope.
Government Intervention: If you think your problems are bad, just wait until you see our solutions!
But it would be nice if the FCC would make carriers actually deliver what they promise. An unlimited data plan is just that... Not Limited; in speed, bandwidth, or use.
They should be required to call it an "internet browsing and email only" plan, because that's all they really want you to use it for. They prove that in their TOS agreements and "Fair Use" policies that they hide behind when they use their big business influences to strong arm their policies onto their subscribers by policing the devices and services they allow to use their network.
I call Shenanigans FTW!
Soo, I am kinda liking this new FCC, they are actually getting things done, doing them right, and looking out for the consumer. What a novel idea. Are you sure that the FCC was not sold off and is no longer part of the government?
LOL... If you think the FCC has ANY interest in us little people then you just haven't lived long enough to see what happens when they "help." If we are lucky we will still be "Americans" when the fiasco with the bailouts & federal corporate takeovers all come to full disastrous fruition in about 15-20 years.
We are now seeing the results of the last social push from our leaders... social security implosion, sho(i)tty federally / locally backed health care (medicare, medicaid, mediCal).
The PEOPLE have a responsibility to one another, to helping those in need, and the real tragedy is that the government has to FORCE people to do anything. We should have beaten them to it with true social programs for healthcare, retirement, rehab, training, etc... it should be supported privately not compelled federally.
There goes the neighborhood... The "F"CC's deeper involvement is going to spell trouble... Whenever the government decides that corporate America needs help it always means trouble.
I wish it was the same as other countries all phones gsm, with sim cards being the choice
Thank god finally it only took prices to get to an arm and a leg.
For people who knee-jerk against any kind of regulation as a bad thing are the ones hindering your own progress. If you hadn't noticed, America is corporation controlled; almost completely. Don't you find it th eleast bit ironic that in America's "unregulated" market, consumers are always getting the shaft? How is it that the rest of the world gets better, higher quality services and at more reasonable prices? Every arguement has been shot down years ago and yet we still have people who are against regulation just because they don't like the idea of it.
These corporations don't care jack squat about you. Without some kind of regulation, they'd fleece you for all you have and then some; like what's happening with your carrier situation atm now.
These types of regulations are to be put in place so that competition remains fair and ultimately that benefits the consumers AND forces corporations to actually WORK for their success rather than rely on draconian means to squeeze money out of their users. Living in a free world is not free. Look at our roads, we have rules and regulations for those just the same as we need proper regulations for business and everything else.
Pretty much all advanced mobile countries have regulated telecoms industry and that passes on to the users in cost savings, better performance, more competitive product offerings etc. It's a joke when our US carriers state shamelessly that we have the most competitive telecoms industry on the planet. The rest of the world ranks us at around 3rd world equivilent because our services in America are about on par with developing countries. A shame when you consider we're the major superpower don't you think?
How is it that the most powerful country on the planet is also the most technologically least advanced in the fastest growing market in the world? Something is wrong somewhere and I can tell you it isn't the American consumers that are the problem.
Wow. Where to start. O.k your first sentence: "For people who knee-jerk against any kind of regulation as a bad thing are the ones hindering your own progress." Regulation hampers progress, eliminates competition, and raises prices. If I sell you a product without regulation of any kind, I can charge you x for it. When government regulators jump into the fray, they say my product must demonstrate it comports with a, b c. Even if it always did anyway, I will take on additional costs proving that to these regulators. Those costs are passed onto the consumer in the form of x+cost of the regulation to the company. These additinoal costs associated with regulation discurages new corporations from entering the market for the same product due to the added costs, thus hampering innovation because without the competition spurned by the free market, ther is no need to innovate. It is simple logic that unfortunately, people are no longer able to grasp.
I don't remember the big four taking bailout money, so the government has no right to interfere in private business.
Here we go. More government regulations on private business. Competition is what drives prices down, and is the reason I'm likely to leave Verizon after a decade. Why is the government sticking their nasty nose into yet another aspect of industry? Leave us alone, already!
Just remember that many of those "fees" and "Surcharges" are actually taxes. It's the government's crap that makes things more expensive, not the other way around...