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[riontel]

Senate is really taking an interest in wireless market. In addition to pushing FCC to examine the exclusive deals between handset makers and carriers, they are looking at completely unbundling handsets from the networks by finally applying the Carterfone regulation to the wireless. Looks like Skype, who previous FCC chairman basically told to take a hike last year, might get their wish after all. It's about time, too, the rest of the world has been enjoying just this type of flexibility for years. Not that they don't have their own share of problems, of course.

The case for US was well summarized in the Hearing on the Consumer Wireless Experience by the Senate Committee on Commerce, Science, and Transportation this past Wednesday.

To summarize the summary:

1. Bundling handsets to wireless service allows carriers to use their influence on the handset vendor to limit which features customers get access to. Carrier can decide to disable hardware capabilities such as WiFi, Bluetooth, tethering, GPS, etc., and also prevent the use of applications such as Skype or e-mail.
2. Bundling allows carriers to lock-in customers by imposing 1- or 2-year-long contracts.
3. Bundling can limit the innovation for the handsets, apps and network services.
4. Customers who buy an unsubsidized handset do not get any price breaks for service. The service price also remains unchanged after the subsidy had been paid off at the end of the contract period.
5. Carriers claim that applying Carterfone policy will lead to heavy regulations, high customer churn and decreased profits. It's the same thing that was claimed when original policy was introduced in 1960s for the wireline. And probably the same argument cable was using few years back when FCC went after settop boxes.
6. It's just all sorts of bad and wrong and somebody should do something about it before Europe laughs itself silly at our expense.

Comments

[ex-java-duk.livejournal.com]

Чем больше regulations будет, тем больше способов найдут провайдеры для того, чтобы облапошить своих клиентов. Я и так верайзону плачу 70 баксов непонятно за что (мы используем едва ли сто минут из 700 минут плана, а эти суки с нас еще и за text messages дерут). А будет еще хуже.

[riontel.livejournal.com]

Not that I am defending VzW pricing policies but phone companies are not in the charity business. I am sure you charge for your professional services, no?

[ex-java-duk.livejournal.com]

I never charge for something that my customers don't use :) If I spent 3 hours trying to resolve the issue, I charge for 3 hours.

[riontel.livejournal.com]

That's not necessarily an apt analogy. Salaried employees get paid the same amount of money regardless of the amount of time it takes them to do a certain job. The network is there, whether you use it or not is up to you. And, incidentally, VzW does offer pre-paid plans.

[ex-java-duk.livejournal.com]

I know about pre-paid plans but unused minutes in pre-paid plans also have an expiration date.

[riontel.livejournal.com]

True. Then, if you are unhappy with VzW, there are at least three other major carriers available and some MVNOs too.

But to get to your original point, wireless is already heavily regulated and unbundling would only make the situation better by stimulating competition, which is the best way to force price drops without affecting the service quality.