Add to del.icio.us     Digg this

Aug. 22, 2009

The Federal Communications Commission says it will launch a wide-ranging probe into the U.S. mobile industry.

It will investigate multiple issues in the wireless industry, including consumer protection and competitive business practices.

The FCC's investigation plans were outlined in its agenda for an August 27 meeting, which also states that the Commission will consider an inquiry to understand better the factors that encourage innovation and investment in wireless.

Chris McCabe, v.p. of regulatory affairs at CTIA said “we are eager to respond to the commission’s notice of inquiry with a fact-based story. Whether you look within the U.S. or compare us to other countries, there are many healthy indications of good competition, including the significant growth and expansion of Cricket, MetroPCS and TracFone.”

The FCC has stepped up its scrutiny of the wireless industry in recent months. The commission has previously said it plans to look into handset exclusivity agreements between carriers and OEMs, specifically as it pertains to AT&T's exclusive deal to sell Apple's iPhone.

The FCC recently sent letters of inquiry to Apple, AT&T and Google as part of an investigation into Apple’s rejection of the proposed iPhone app Google Voice. Google Voice is a VoIP application that replicates AT&T’s wireless service, posing a competitive threat to the wireless carrier.

AT&T has declined to comment on the news but rival carrier Verizon Wireless reiterated that the mobile sector remained highly competitive, further stating that it looked forward to working with the FCC toward a “shared understanding about how our massive network investments are an engine of growth for the U.S. economy.”

Overall, the FCC is now questioning whether AT&T had any involvement in the rejection of the Google Voice application.

AT&T has denied any involvement in the matter, saying it “doesn’t manage or approve wireless applications” and will “respond accordingly” to the FCC's newly-launched investigation.

When Apple launched Apple's new iPhone in July 2008, it said it had sold slightly over 1 million iPhones in the first two days it started selling them in its stores.

The highly anticipated mobile handset was released in twenty-one countries on July 11, 2008.

While the first iPhone sold more than 250,000 units during the first weekend it was available, the handset was launched initially only in the U.S.

Add to del.icio.us     Digg this

    This article was featured on Business 5.0 and on Tech Blog.

Source: The FCC.