July 22, 2009 - 5:28am
The trade group said in a statement that the Rural Cellular Association, encouraged by Verizon Wireless's most recent exclusive handset proposal, will continue to pursue modifications to the policy.
Last week Verizon Wireless said that it would limit new exclusive handset agreements to six months, after which it would allow wireless providers with fewer than 500,000 customers to service the devices. The offer was made after reports that the U.S. Department of Justice`s antitrust division was looking at whether major telecom companies, like Verizon and AT&T, abused their market clout.
"The commitment does not go far enough to rectify the consumer and competitive harms caused by these agreements," the group said. "More than 180 million of the nation's wireless customers are unable to benefit from the new policy." It also noted that the offer, since it specifies new handset deals, would exclude Verizon's exclusive arrangement with the Blackberry Storm, by Research In Motion Ltd.
Handset deals have been the center of some lawmakers' concerns about whether the practice encumbers innovation and competition. The deals include AT&T Inc's exclusive U.S. rights to Apple Inc's iPhone and Sprint Nextel's deal with Palm Inc's for the Pre. However, Verizon shrugged off RCA's criticism, saying that no individual company has to accept their offer.
Last week Verizon Wireless said that it would limit new exclusive handset agreements to six months, after which it would allow wireless providers with fewer than 500,000 customers to service the devices. The offer was made after reports that the U.S. Department of Justice`s antitrust division was looking at whether major telecom companies, like Verizon and AT&T, abused their market clout.
"The commitment does not go far enough to rectify the consumer and competitive harms caused by these agreements," the group said. "More than 180 million of the nation's wireless customers are unable to benefit from the new policy." It also noted that the offer, since it specifies new handset deals, would exclude Verizon's exclusive arrangement with the Blackberry Storm, by Research In Motion Ltd.
Handset deals have been the center of some lawmakers' concerns about whether the practice encumbers innovation and competition. The deals include AT&T Inc's exclusive U.S. rights to Apple Inc's iPhone and Sprint Nextel's deal with Palm Inc's for the Pre. However, Verizon shrugged off RCA's criticism, saying that no individual company has to accept their offer.