Sunday, July 15, 2007

Some Democrats criticize carrier restriction for iPhone

This seems a bit funny. During a Congressional hearing on regulation in the wireless industry, some Democratic leaders lit up on Apple and the iPhone for restricting usage only to AT&T as an exclusive carrier for 5 years. It was sought to be portrayed as a limitation to customers who either had other providers or who were located in areas where AT&T did not provide coverage. Seems a bit strange to be objecting to something that seems so central to how the wireless industry works:


The iPhone "highlights both the promise and the problems of the wireless industry today," said Rep. Edward Markey, D-Mass., chairman of the House Subcommittee on Telecom and the Internet. "This cutting edge technology breaks new ground … [but] consumers can't use this service with other wireless carriers" and those in areas not reached by AT&T cannot use the iPhone at all, he said.
Rep. Fred Upton, R-Mich., was less concerned. "Competition spurs carriers to innovate and build a better mousetrap," he said. "The iPhone is the newest mousetrap and now other carriers will be working to top it." Members convened the hearing to debate whether wireless service agreement regulation should be transferred from state public utility commissions (PUCs) to the federal government. The wireless industry has long favored a more national approach, but state PUCs are hesitant to give up control.


This restriction to AT&T has long been sought as a major weakness for the iPhone, since there will be a number of customers who will not be able to switch over to AT&T because of existing contracts. However, the iPhone is not a device that has a major share of the market, and there will be more devices that will come out of a similar nature that will allow people to use these devices. It is not in the nature of an anti-trust deal that requires lawmakers to comment. It would be nice if there was no restriction, but this is a commercial contract.

No comments: