Rural cellular phone providers are asking Congress to outlaw exclusive cell phone deals. These are the sorts of deals that mean, for example, that AT&T is the only company that offers Apple's iPhone. If this change were made, Verizon could sell it, too, and AT&T could cell the Blackberry Storm, which is exclusive to Verizon.
The rural companies' case is that because the big carriers don't offer service in a lot of communities, people cannot use the newest phones. More broadly, in many communities only one carrier is available with reasonable coverage, so only its exclusive phones are available.
The argument against this is that cell phone companies offer their exclusive phones at a discount and subsidize development of the new technology. This is the case made in a piece over at Slate.com.
I'm of two minds on this and curious what people think.
On the one hand, this can be spun as interfering in the marketplace. This is how things have shaken out, and most carriers t offer some sort of smart-phone, even if it isn't the one someone necessarily wants.
On the other hand, it seems like inovatoin in delivery of service. If all companies could offer the same phones, then cell phone companies would have to compete on quality of service not who has the hottest exclusive. That would be good for areas like Southwest Virginia. Here, if someone wants the iPhone, he can sign up for AT&T and be sure to have lousy coverage.
My experience with several carriers is that only Verizon and U.S. Cellular work remotely well in many parts of the region. Plus no one offers the high speed data service comparable to many other areas.
Thoughts?