Verizon phone-exclusivity offer "virtually meaningless," says consumer advocate

An offer by Verizon Wireless to allow smaller carriers to sell cell phones for which it has exclusive arrangements is "virtually meaningless," according to a spokesman for Consumers Union, the nonprofit publisher of Consumer Reports magazine.

In a letter addressed to Rep. Rick Boucher, chairman of the House Subcommittee on Communications, Technology, and the Internet, Verizon today said smaller wireless carriers with 500,000 customers or less would be able to offer phones after a six-month period of exclusivity for Verizon.

Joel Kelsey, a policy analyst with CU, said that, "at best," the Verizon decision helps only a small number of consumers. "This does nothing to correct the anti-competitive effects of exclusivity. Exclusive [phone arrangements] continue to blunt the force of consumer demand, and consumers continue to face limited choices in the marketplace."

Verizon's announcement comes as scrutiny is growing in Washington of arrangements in which phones, including such eagerly awaited models as the iPhone and Palm Pre, are available only from a single carrier, at least for a period.

Comments

[Jeffro]

So im sure this "Consumer Advocate" has made similar claims about At&t and Sprint also right?

Oh they didnt. Verizon is one of the biggest companies with lots of money to be lost on a class action lawsuit. Oh yeah........