In a wise and fairly clear attempt to head off more regulations, Verizon Wireless now says it will allow small wireless carriers to use its popular and "exclusive" handset models after six months. Smaller wireless providers have been complaining that exclusive handset deals represent unfair competition.
"Any new exclusively arrangement we enter with handset makers will last no longer than six months, for all manufacturers and all devices," Verizon Wireless CEO Lowell McAdam has told key Congressional lawmakers.
Some consumer advocates also object to handset bundling, for similar reasons. But some economists have pointed out that bundling promotes competition and innvoation, as it provides incentive to introduce new features and models. "Exclusivity arrangements promote competition and innovation in device development and design," McAdam says. "This new approach is fair to all sides."
It isn't immediately clear whether the new policy also applies to wholesale customers.
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