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FCC Officially Looking Into Wireless Industry Practices—Regulation May Be Coming

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The FCC met today and agreed to investigate the wireless industry, a process that could lead to more regulation for cell phone industry, reports the WSJ.

In addition to a public inquiry, the FCC will look into what is being called “innovation” in the wireless industry. FCC Chairman Julius Genachowski said the FCC should be “relentless about developing policies” that maximize innovation in the wireless sector, which is a fast-growing and dynamic market that many observers consider key to economic growth.

The process could lead to restrictions on exclusive handset deals, or cap the rates that wireless companies charge each other to roam on each others’ networks.

Steve Largent, the president and CEO of CTIA-The Wireless Association, responded to the inquiry today, by listing off a number of recent innovations to show how competitive and quick the market is changing. He said now there’s almost 100,000 apps available that weren’t available 14 months ago, and that the U.S. has the newest smartphones and the fastest networks and the lowest price per minute among 26 countries. Largent: “The wireless ecosystem – from carriers, to handset manufacturers, to network providers, to operating system providers, to application developers – is evolving before our eyes and this is not the same market that it was even three years ago.  In this industry, innovation is everywhere.”

Aug 27, 2009 1:56 PM ET

FCC Chairman Julius Genachowski Photo: AP / Harry Hamburg


Posted In: Legal, Policy, Regulatory, FCC, Mobile

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