Senators Urge FCC To Probe Carrier Exclusivity

According to Reuters, several senators sent a letter to acting FCC Chairman Michael Copps expressing their concern.

"We ask that you examine this issue carefully and act expeditiously should you find that exclusivity agreements unfairly restrict consumer choice or adversely impact competition in the commercial wireless marketplace," the senators wrote.

The letter, dated June 15, was signed by Democrats John Kerry, chairman of the Senate Commerce Subcommittee on Communications, Technology, and the Internet; Byron Dorgan of North Dakota and Amy Klobuchar of Minnesota; as well as Roger Wicker, a Mississippi Republican.

The letter asked the FCC if exclusive carrier-device agreements have become more prevalent and if they are limiting consumers' ability to take full advantage of handsets, are manipulating the competitive marketplace between commercial wireless carriers and are playing a role in discouraging innovation, Reuters reported.

The senators added that they will hold a hearing Wednesday to look deeper into competition issues and determine if legislative action is necessary.

The request comes as exclusive deals between manufacturers and wireless carriers gain more attention. Most notable among exclusive deals is AT&T's partnership with Apple to be the exclusive iPhone carrier. Others include Verizon's exclusivity with the BlackBerry Storm and Sprint's exclusive pairing with the Palm Pre.

The senators' urging the FCC to investigate comes as other carriers try to woo exclusive devices to their networks. Rumors are circulating that Verizon may get an iPhone model in the near future, while AT&T has said it would like to bring the Palm Pre to its network once Sprint's exclusivity expires.

Along with the letter from the senators, the Rural Cellular Association, a group that represents more than 80 rural wireless providers, recently filed a petition asking the FCC to look into how the exclusive agreements affect consumers.