Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (21651)	4/22/2002 4:42:49 PM
From: Dennis Roth	Respond to of 197563

Wireless Giants Control Handset Market, Says Lawsuit newsbytes.com By Brian Krebs, Newsbytes WASHINGTON, D.C., U.S.A., 22 Apr 2002, 2:56 PM CST The four largest wireless carriers have near total control over the U.S. handheld phone market, and consumers are being forced to buy phones solely from companies favored by the major carriers, according to a class-action antitrust lawsuit filed this month. In a complaint entered on behalf of New York area cell phone customers, the Wireless Consumers Alliance accuses Verizon Wireless, Sprint PCS, AT&T Wireless and Voicestream Wireless of leaving consumers stuck with phones produced by a handful of manufacturers. The lawsuit seeks to end a common industry practice of requiring subscribers to buy mobile phones solely from their carrier or an authorized reseller - such as Radio Shack or Best Buy - as a condition of obtaining wireless service. The consumer group alleges that the major wireless carriers buy between 80 percent to 90 percent of all handsets from a few major manufacturers, and have used the exclusive contracts to dictate how their phones are programmed, priced and distributed. That development has helped to crush third-party phone makers and limit the development of new technologies, the group claims. According to the complaint, the four major carriers also configure their phones so that they cannot be used on competitors' networks, thus inflating prices for the phones and stranding consumers with their current carrier. "By ensuring that a subscriber wishing to change carriers must also change his or her telephone number, must purchase another handset and must agree to a 12- or 24-month service contract, the carriers" have made it prohibitively expensive for consumers to switch carriers, the lawsuit said. The suit was originally filed in January, but was withdrawn two weeks later. The WCA subsequently joined the complaint and refiled the suit on April 5, 2002 in a New York federal court. An AT&T Wireless spokesperson dismissed the suit as "without merit." Representatives from other major carriers contacted for this story declined to comment on the suit. But Travis Larson, a spokesman for the Cellular Telecommunications and Internet Association, said current FCC rules do not bar carriers from bundling their service with a particular phone or technology. "The last word from the FCC on this came in 1992, when it said the bundling of services and equipment is perfectly legal," Larson said. The Wireless Consumers Alliance maintains that the FCC ruling allows bundling only if carriers offer the same terms of service to consumers regardless of whether the phone was purchased from their carrier or from another source. FCC officials could not be immediately reached for comment. Mark Cooper, director of the Consumer Federation of America, said the major carriers haven't changed their marketing tactics since the mid-1990s - when the majority of wireless phones were sold to businesses. "Now that a lot of soccer moms and ordinary consumers have these phones, the industry's practices are starting to attract scrutiny," Cooper said. "Clearly there's a lot of pressure to keep people locked into a single phone." If proven, the allegations "could have a dramatic impact on developments in the wireless industry," said Gene Kimmelman, co-director of the Consumers Union. The suit seeks damages on behalf of approximately 9 million wireless users in metropolitan New York and portions of New Jersey. The financial impact of a successful lawsuit could be substantial, as antitrust awards may be tripled under federal law. But Kimmelman said the plaintiffs would have a difficult time proving that the major carriers have colluded to block competitors. "Each of these companies would like to see people switch from somebody else's networks to theirs, so the obvious question is why would they have gotten together to do this jointly?" Kimmelman said. With more than 130 million cell phone subscribers in the United States today, the industry generates its fair share of consumer complaints. Members of Congress also have taken notice. Rep. Anthony Weiner, D-N.Y., has offered legislation that would require the FCC to more closely monitor wireless consumer complaints. The FCC recently began to issue quarterly reports on complaints from wireless consumers, and has tentatively begun an effort to streamline the complaint-filing process. In addition, several state attorneys general are reviewing the business practices of the dominant wireless carriers. The complaint is at wirelessconsumers.org . Reported by Newsbytes.com, newsbytes.com . 14:56 CST Reposted 15:23 CST (20020422/WIRES ONLINE, LEGAL, BUSINESS, TELECOM /CELLUSE/PHOTO) 2001 The Washington Post Company

To: Dennis Roth who wrote (21651)	4/23/2002 8:14:50 AM
From: quartersawyer	Respond to of 197563

China's demand for 3G could be much more immediate than Minister Wu's restrictive vision. Aside from capacity, the need for information is intense. China is now second only to the US in home-based internet subscribers. That doesn't fit the backwater image, and has to represent many millions who will use the best wireless devices they can find. "We're not delaying 3G, it's just a question of whether or not the market is ready for it," said Wu Jichuan, head of China's telecoms regulator, the Ministry of Information Industry." The other side: "The [wired]potential is staggering," said Nielsen managing director Hugh Bloch. who said 56.6 million people are living in Internet connected homes in China. Bloch said China stands to quickly become the leading Internet-connected country, as Internet subscription rates increase five to six percent a month" www1.chinadaily.com.cn