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AT&T Fires Back Against Antitrust Criticism

AT&T Fires Back Against Antitrust Criticism

AT&T has taken aim at politicians who are criticizing the company over several issues consumers have long cried foul about

AT&T has fired back against government criticism, led by Sen. Herb Kohl (D-Wis.), which says the current wireless industry in the United States is anti-competitive and bad for consumers.

“The popularity of the iPhone and its innovative features and applications has provoked an unprecedented competitive reaction,” AT&T Senior VP of legislative affairs James Cicconi said in a letter to Kohl.

At the start of the week, Kohl pleaded with the Department of Justice (DoJ) to look into the legality of exclusive handset agreements that most phone owners have to deal with when purchasing new mobile phones.

“U.S. wireless prices are much lower than in any other major industrialized country,” Cicconi also noted in his letter.

Apple and AT&T have been openly criticized by a number of consumers, especially those looking to use the popular iPhone on other networks, though both companies have largely ignored complaints. Even though AT&T has been successful luring some users away from Verizon Wireless, T-Mobile, and other carriers, there are still quite a few consumers who’d like the iPhone but refuse to switch to AT&T just to use it.

Research in Motion’s BlackBerry smartphones normally are locked to a specific carrier, as are other popular phones, which hurts smaller carriers that are unable to use many of the most sought after phones.

“I am concerned that the concentrated nature of the cell phone marketplace could lead to future price increases for this and other cell phone services relied upon by millions of Americans,” Kohl noted in his letter on Monday.

Kohl hopes the Justice Department will more closely evaluate mergers between phone companies and to investigate if carriers are attempting to limit competition.

It’s unsure how much legal pressure the DoJ can put against wireless carriers who have exclusive contracts to certain phones, but Sen. Kohl hopes, at the very least, that other lawmakers consider looking into the issue further.

Wireless operators in the U.S. are facing legal pressure on a number of topics, including the cost of SMS messaging and early termination fees. AT&T said early termination fees are a way for wireless companies to recoup money used to subsidize the cost of handsets for consumers.

Both AT&T and Verizon Wireless came forward and denied price-fixing the SMS market to gouge customers.

[Thanks: http://www.dailytech.com]

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