Democratic congressman Edward Markey, who is chair of a House subcommittee on telecommunications and the Internet, described the iPhone as a Hotel California service. You can check out any time you like, but you can never leave – you’re stuck with your iPhone and you can’t take it anywhere, Markey said.
He said the iPhone highlighted both the promise and the problems with the US wireless industry. On one hand, the iPhone is forging new demand for wireless devices but on the other consumers must commit to a two-year AT&T contract in order to use their device. AT&T is the exclusive wireless carrier for the device through 2012. Consumers feel trapped, Markey said.
Another democratic congressman, Mike Doyle, echoed his concerns. The iPhone could still change the world and be available for any consumer on any network, but we won’t know until 2012, Doyle said. I think it’s time the consumer becomes a decider, not the cell phone carriers.
Their comments came during a hearing whether US states can maintain their authority to regulate mobile phone companies in the country.
Currently, state public commissions are able to regulate terms of wireless service agreements. They have no say over pricing of wireless contracts.
One outspoken proponent of state deregulation, Verizon Wireless, has called for national authority over wireless companies instead of state-by-state regulation. Verizon said state attorneys general could then continue to police illegal and unfair industry actions.
