FCC to Investigate Wireless Industry Practices

The Federal Communications Commission is launching a wide-ranging investigation on whether carriers engaged in anti-competitive behavior ranging from tying subscribers with lengthly contracts to charging fees when they want to leave early. The Commission plans to look into whether changes need to be made to "truth-in-billing" rules to ensure customers know what the line items on their bills are actually funding. The FCC's actions are the latest sign of the Obama administration's determination to bring heavier regulatory scrutiny on the wireless industry. In June, the Justice Department began reviewing whether U.S. carriers such as AT&T and Verizon engaged in anticompetitive behavior. It looked into whether consumers were being hurt -- and their choices limited -- by exclusive handset arrangements like deals linking AT&T to Apple's iPhone, Sprint to Palm's Pre and Verizon to Research in Motion's BlackBerry Storm. Verizon has said it will limit the time it holds on exclusive handset deals, allowing small rivals to sell the same devices after six months. The FCC also started reviewing a complaint by Skype that providers blocked customers from using its low-cost Internet-based calling services. Separately, it fired off letters to Apple, AT&T and Google inquiring why Apple recently rejected Google Voice -- a cheaper calling and text alternative -- from its App Store. The Sherman Antitrust Act, which covers monopolistic and anticompetitive behavior, has been used in the past against giants such as Standard Oil and Microsoft. It's not yet clear how these battles will turn out as a result of the inquiries.