Wsj: Justice Dept. Reviewing Large Telecom


Verizon

The inquiry, as yet informal, may look at whether consumers are hurt by the long-term exclusivity agreements carriers like AT&T Inc. and Verizon Wireless sign with cell phone makers, according a report on the newspapers Web site on Monday.

The Federal Communications Commission has already said it will look into exclusive handset deals.

Most exclusivity agreements last for six months or less, but AT&T is still the only U.S. carrier to sell Apple Inc.s iPhone two years after the first models launch, which has drawn attention.

The Justice Department could also look into whether carriers are unduly limiting the applications that they allow to run on their wireless networks, according to the Journal. The carriers generally dont allow applications like TV streaming, saying they would take up too much air time and slow down access for other users.

Gina Talamona, spokeswoman for the Justice Departments antitrust division, declined to comment on the Journals report. Verizon spokesman David Fish said the company had no indication that a review had started. A call to AT&T was not immediately returned.

Verizon Wireless, the countrys largest wireless carrier, is a joint venture of Verizon Communications Inc. of New York and Vodafone Group PLC of Britain. Verizon Communications shares rose 18 cents to close at $30.36.

AT&T shares gained 21 cents to $24.80.

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