Verizon Wireless offers Congress very slightly revised exclusivity terms

By Tim Conneally | Published July 17, 2009, 4:52 PM

Now that the wireless telecommunications industry is under scrutiny by Congress and the US Department of Justice over handset exclusivity agreements and their effect on the industry, Verizon Wireless has yielded slightly to political pressure and eased up on its exclusivity. We emphasize slightly.

In a letter to congress, Verizon Wireless CEO Lowell McAdam said, "Any new exclusively arrangement we enter with handset makers will last no longer than six months -- for all manufacturers and all devices."

So VZW will be letting small wireless carriers have first crack at their handsets after a six-month exclusive period, as first reported by The Wall Street Journal this morning.

But the catch to this concession is that Verizon's definition of "small carriers" means those with 500,000 subscribers or less.

Just to provide a bit of perspective on that number: Most of the United States' Tier 2 wireless network operators -- the smaller, regional ones -- have well over a million subscribers. Leap/cricKet has an estimated 3.84 million, and metroPCS and US Cellular both have more than 6.1 million, even nTelos has more than 700,000 subscribers.

In fact, this is the smallest possible compromise Verizon could offer. As Fierce Wireless reported at the beginning of the year, there are only seven wireless networks with fewer than 7 million subscribers but greater than 250,000 in the US.

So the only carriers that will benefit from Verizon's concession are the smallest Tier 3 networks, the MVNOs (Mobile Virtual Network Operators) who lease spectrum from the bigger carriers.

McAdam went on to say, "This new approach is fair to all sides." A statement which could indicate that AT&T, Verizon, Sprint, and T-Mobile all have roughly the same tiny amount of MVNOs in the below-500,000 subscriber range.

Comments

View comments by with a score of at least

Meh..

The existing approach was fair to all side. Those who wanted to pay full price for the phone could, those who didn't want to could sign with the carrier with the deal. The ultimate solution proposed is strikingly similar to others proposed by this administration for various "problems"...

"If a few people are getting a deal, and other choose to pay full price, we'll force *everyone* to pay full price...just to make it fair."

Score: 0

|

EC's Kroes to US senators: Mind your own business on Oracle + Sun

If the AP is accurate, the EU's antitrust chief just told the United States Senate that any merger that takes place in the world is more her affair than theirs.

What does AT&T's 'Mark the Spot' app say about service quality?

That's a question for Betanews readers to answer in comments to this post.

Windows fix for TLS security bug still forthcoming, won't be Tuesday

Anyone looking for a fix for last month's discovery of a potentially serious security hole in TLS and SSL may have to wait until everyone is ready to act together.

Google rolls out real-time search, Near Me Now, extended personalization

Over time, searches from PCs and mobile phones will grow even "more personalized." But what about user privacy and search results that give you "the truth"?

Betanews Podcast: Rupert Murdoch and the buying stuff online problem

We'll have a more difficult time paying for online news if the underlying protocol for online payment has a big gaping hole in it.

Not the first, not the last, technology predictions for 2010

Carmi Levy | Wide Angle Zoom: The real truth is probably that what went around in 2009, will come around to haunt us next year.

Google Goggles: Hands on with the Shazam of the Real World

Google today unveiled Goggles, its visual search lab for Android devices that identifies objects by sight.

Microsoft: Windows 7 Family Pack wasn't 'pulled,' it just sold out

If you hurry, you may still be able to find the last Family Pack upgrade editions hanging around retail store shelves, but probably not so much online.

Clever iPhone game returns after being bumped over a name dispute

The game's simple concept and multitude of platforms and puzzles manage to pull off a retro, 8-bit style that's reminiscent of an old Atari game given a modern makeover.

Intel's marriage of CPU and GPU not ready for prime time

Although there will be an Intel component this month that can compute and plot in parallel, Betanews was told today, it won't be based on Project "Larrabee."

An alternative to Research in Motion's enterprise e-mail? There's an app for that

Good Technology today released an iPhone app compatible with its enterprise e-mail solution.