Tech and Web NEWS

U.S. Federal Communications Commission to Investigate Exclusive Cell Phone Deals, Backs Broadband Stimulus as chairman Julius Genachowski joins

By Amarendra Bhushan for CEOWORLD Magazine Updated:June 19, 2009

The Senate Commerce Committee approved Julius Genachowski as chairman of the U.S. Federal Communications Commission.

He favors using $7 billion of stimulus money to extend broadband Internet service to consumers who lack access now, a view backed by big telecommunications and cable companies.

Genachowski held various positions at Barry Diller’s IAC/InterActiveCorp and co-founded technology investment firm Rock Creek Ventures. He also served on the boards or as advisers to Ticketmaster (TKTM.O), Web.com (WWWW.O), The Motley Fool, Beliefnet, Truveo, and Rapt.

The committee also approved Robert McDowell, a Republican, to serve a second term on the agency that regulates telephone, cable and broadcast companies.

The Senate panel is also considering another Democrat and Republican to fill two seats. Obama has nominated Mignon Clyburn, the daughter of House Majority Whip James Clyburn of South Carolina, to fill a Democratic seat.

Meredith Attwell Baker is being considered for the Republican seat. Baker, a former Commerce Department official, has not been formally nominated by the Obama administration.

“Fix this agency, and prove to us that the FCC is not battered beyond repair,” Sen. John D. Rockefeller IV (D-W.Va.) said during yesterday’s hearing. “Show us the FCC can put consumers first and give them confidence that when they interact with the agency they can get a fair response.”

“I’m energized by what is happening around the country in mobile. We’re seeing incredible innovation,” Genachowski said. “I believe we have an opportunity for America to lead the world in mobile.”

The Wall Street Journal reports he told the senators he would not seek to revive the Fairness Doctrine, the repeal of which under the Reagan Administration led to the flowering of conservative talk radio – a key foundation of the Republican dominance over the past 25 years.

The Federal Communications Commission will open an investigation into whether exclusive cell phone deals are harmful to consumers, acting Chairman Michael Copps said Thursday.

This investigation will determine “whether some of these arrangements adversely restrict consumer choice or harm the development of innovative devices, and it should take appropriate action if it finds harm,” Copps said.

Four U.S. senators asked the agency in a letter Monday to review the exclusive deals. Examples include AT&T Inc.’s arrangement to offer Apple Inc.’s iPhone on its network and Sprint Nextel Corp.’s sole rights to Palm Inc.’s Pre.

Julius Genachowski, backed Thursday by the Senate Commerce Committee to become the next FCC chairman, said he would ensure that “the full record” on the issue is reviewed and “act accordingly to promote competition and consumer choice.”

The announcement (.pdf) comes just a day after a Senate subcommittee heard competing arguments over whether deals like Sprint’s six-month lock on the Palm Pre and AT&T’s long-running U.S. monopoly on the iPhone stifle competition and hurt consumers.

Federal Communications Commission Acting Chairman Michael Copps said today (.pdf) that the FCC will open a formal proceeding to “determine whether some of these arrangements adversely restrict consumer choice or harm the development of innovative devices ….”

Like this article! ‹ Ex Morgan Stanley analyst Stephen Girsky to represent UAW Retiree Medical Benefits Trust on General Motors board Mobile Marketing quickly growing ›
Share this Post: Get It Delivered To Your Inbox