Thursday, June 18, 2009

Legislators Look at their Own Phone Bills, Question Legality

Years after exclusive contracts for wireless service became de rigeur, a few legislators are now wondering if exclusive phone contracts are in fact a bane to competition.

No, consumers like higher prices for phone contracts. It convinces them that they are paying top dollar for top service.

No, really.

"The four largest wireless carriers have hijacked consumer access to handset technology," said John E. Rooney, chief executive of U.S. Cellular, the nation's fifth-largest cellphone service operator with 6.2 million subscribers. "Everyone is going to the big four to get exclusive rights to these phones, so we are stuck with everything other than these. It puts a big dent in our ability to compete and our ability to supply these phones to areas of the country where we serve customers where they don't."

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