FCC reacts, starts looking into carrier-exclusive deal

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At face value it would appear that the devices would be much more expensive if we did away with exclusive carrier / device relationships. 2 Things come to mind though. If a device maker is not in an exclusive deal with just one carrier, they can still have subsidized phones based on 2 year contracts with all carriers. That part of the business shouldn't change that much, maybe a little based on volume though. If it did, over time device makers will become more competitive with pricing among themselves because they will no longer be able to solely count on a subsidy deal with a carrier that is making up the costs of (probably) an inflated device price to begin with. They will also have other outlets for sales outside of the carrier's retail presence.

I still think the customer wins with a choice of any device on any carrier. This is also good for carriers because they will see less defections, and good for companies like Apple because they will sell more devices overall.

Posted by: djmik   Posted on: 06/19/09 You are currently: a Guest | Members login | Terms of Use

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