After years of letting industry have its way on just about everything, we’re now seeing a reborn federal telecoms regulator and Apple’s iPhone App Store shenanigans, among other transgressions, have caught the attention of agency’s chairman and watchdogs. Although there’s just as much danger from too much regulation as there is too little, so far things are looking good.

Reuters reports that the Federal Communications Commission wants more additional information about Apple’s decision to reject Google Voice and related applications for the iPhone. The natural implication that four powerful US Senators, which requested the agency look into competitive matters in the wireless business, and an obviously re-invigorated FCC grasp is that AT&T forced the issue in order to quash the nascent bugs of competition to its iPhone voice calling monopoly.

Likewise, the FCC’s hands on Chairman Julius Genachowski has already begun looking into exclusive carrier + handset maker distribution deals. This has led to denials of negative impacts from AT&T and a series of bizarre statements by Apple that handset jailbreaking (ie hacking the iPhone to allow to operate on an any network) is a threat to cell towers and the national wireless network.

A longer view of things…

Although AT&T’s many critics have interpreted the FCC’s assertive inquiries as an indication that exclusive handset deals could soon be a thing of the past, the agency has said the focus of their investigation of the matter will be on unserved (mostly rural) areas, perhaps indicating a limit to any remedy regulators may eventually seek.

Moreover, the Obama administration has repeatedly stated they’ve very interested in expanding the nation’s wireless and broadband franchises, especially in rural areas. That said, forcing AT&T and other carriers to sublicense leading edge handsets on good terms to wireless companies in unserved areas seems a more reasonable remedy than trying to bar exclusivity agreements per se.

Whatever the case, the FCC sent letters of inquiry to Apple, Google and AT&T on Friday, and one expects the various players to begin playing more nicely together regardless of any actions, or lack thereof, from federal regulators. That is, sometimes simply shining a light on the people making these sweetheart and thoroughly anti-competitive deals is more than enough to tame the more thuggish inclinations of crony capitalism…

What’s your take?

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on Saturday, August 1st, 2009 at 12:19 am
under Commercial Software, Free Apps, Internet, Legal, News, Open Source, Opinion, iPhone.  Print This Post

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