Senate Tries To Split Up AT&T And Apple

Posted: Jun 16 2009, 6:00pm CDT | by , Updated: Aug 11 2010, 2:56pm CDT , in Apple


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Once again, our government is screaming 'fire' where there's not even smoke. Senators John Kerry (D-Mass.), Byron Dorgan (D-N.D.), Amy Klobuchar (D-Minn.) and token Republican Roger Wicker (R-Miss.) sent a letter to the acting chief of the FCC complaining about wireless dualopolies. They think that arrangements like Apple and ATT's are unfair to the competition and negatively impact consumer choice.

To be quite honest, I think these charges are ridiculous. My job involves reading about virtually every new mobile or smart phone that gets released. Consumers have more choice in the mobile phone market than they ever have. Samsung's ridiculous Omnia blow-out yesterday is proof positive of that. The two most notable alliances right now are Apple/ATT & Palm/Sprint. While it's true that the Pre is fairly popular and the iPhone is ridiculously so, that doesn't mean other companies have fallen on hard times.

RIM and Nokia don't seem to be overly troubled by the fact that the iPhone is exclusive to AT&T. In fact, they'll have a lot more to worry about when that exclusivity ends. That is exactly why any sort of law passed to ban this would be utterly useless. Neither Palm nor Apple are excited that they have less markets to sell their phones to. The more carriers your smartphone is on the greater market share you'll capture.

There are some benefits to having an exclusivity deal, but as the mobile market contracts they become more and more of a hindrance to mobile manufacturers. With any luck, nothing will come of this, the alliances will fall apart, and the government will find something else to overreact to.

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The Author

<a href="/latest_stories/all/all/5" rel="author">Robert Evans</a>
The excitement about new smartphones, tablets and anything mobile drive Robert to unearth the latest rumors and developments in this fast moving space. He adopted 4G as soon as it become available and knows where the mobile market is going.
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