Verizon
AT&T, Verizon, Sprint Nextel Corp. and T-Mobile USA Inc. are “conspiring to limit consumers choices among both wireless devices and plans,” Victor Meena, chief executive officer of Cellular South, said in a teleconference with reporters today.
Meena, whose company serves Mississippi and four other states, is among witnesses set to testify at a hearing today before the Senate Commerce Committee. Four U.S. senators asked the Federal Communications Commission on June 15 to see if exclusive arrangements unfairly restrict consumer choice.
Executives from Dallas-based AT&T and U.S. Cellular Corp. are also scheduled to testify AT&T has an exclusive deal to offer Apple Inc.s iPhone, and Sprint has sole rights for Sunnyvale, California-based Palm Inc.s Pre.
The carriers “are using their control over 90 percent of the wireless market to demand long-term, exclusive agreements with device manufacturers,” Meena said.
Closely held Cellular South is based in Jackson, Mississippi, according to its Web site.
Verizon Executive Vice President Tom Tauke has defended handset exclusivity.
“It helps create a very strong competitive environment” as telephone companies vie to present the best equipment, Tauke told reporters at a June 4 briefing in Washington.
Sharing Risks
Paul Roth, AT&Ts president of retail sales, is to testify today that current practices let service providers and device makers share risks, ensuring innovation and lower prices, according to a copy of his testimony.
U.S. consumers have a wide choice of handsets, and eliminating the exclusive arrangements would raise the costs of the devices, John Taylor, spokesman for Overland Park, Kansas- based Sprint, said in an interview. Deutsche Telekom AGs T- Mobile is spending “significant dollars in handset innovation to compete against the likes of the iPhone,” said Kathleen Ham, a vice president with the unit.
“That is not inhibiting consumer choice, its expanding consumer choice,” Ham said in an interview.
“If you live in New York City and want a Touchscreen BlackBerry Storm, then you will be a Verizon Wireless customer whether you want to be or not,” Meena said in the conference call. “If you live in Washington, D.C., and want an iPhone, then you are obligated to be an AT&T Wireless customer.”
Basking Ridge, New Jersey-based Verizon Wireless is owned by Verizon Communications Inc. and Vodafone Group Plc.