According to a government report released Aug. 26, consolidation over the past decade has left just four big carriers in control of 90 percent of the wireless market, making it harder for small and regional companies to compete, reports the Associated Press. The study by the Government Accountability Office, the investigative arm of Congress, could help fuel the FCC’s recent efforts to increase oversight of the wireless industry. The FCC is currently considering rules that would require wireless phone companies to alert consumers before they reach roaming or data usage limits on their wireless plans. It has also been looking into common industry practices such as charging consumers early termination fees to break a service contract before it expires. The GAO study found that despite the industry consolidation, consumers are benefiting from better wireless coverage and prices that are half what they were in 1999. It also says that nearly 40 percent of U.S. households rely on a cell phone as a primary phone. Although the GAO reached no firm conclusion on the causes of limited competition in the wireless sector, it does list a number of factors regularly cited by smaller carriers and consumer groups. Those include early termination fees and handset exclusivity deals such as AT&T Inc.’s contract with Apple Inc. to serve as the sole U.S. carrier for the iPhone……Read More
Podcast Series: Innovations in Education
Explore the full series of eCampus News podcasts hosted by Kevin Hogan—created to keep you on the cutting edge of innovations in education.