FCC Bans Exclusive Phone Deals : iphone to Tmobile US!!

March 19, 2008 | ghengis | Comments 1

Regulators on Wednesday unanimously approved a rule banning exclusive telephone service agreements in apartment buildings, giving tenants their pick of providers. The five-member Federal Communications Commission said in a release that exclusive contracts between carriers and apartment-building owners “hurt consumers and harm competition, with little evidence of countervailing benefits.” It noted that the deals have also blocked residents from getting bundled voice, video and high-speed Internet service packages. The agency’s order applies to both existing and future contracts in apartment buildings and other multiple tenant properties. The FCC’s action, which was expected, is consistent with past rulings. In 2000, it restricted exclusivity clauses for telecom services in commercial office buildings and, last year, for cable services in residential apartment buildings. Major carriers, including Verizon Communications Inc. and AT&T Inc., supported the agency’s action, but housing and real estate groups said the FCC is overextending its regulatory reach. While the FCC said its rulings put telecom and cable companies on a level playing field, the agency is being challenged in court over banning existing exclusive agreements for video services. The cable and housing industry have said existing deals should be honored.

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