Viewpoint

Here, a monthly perspective from Consumers Union on the latest challenges—and possible solutions—facing U.S. consumers today. See archived letters.

Want that phone?

Cameron Price is a huge fan of all things Apple: He has a Mac Mini desktop, a MacBook laptop, and an iPod Nano, so it's only natural he would want an iPhone. "I'd really like to complete the set, so to speak," says Price, a 38-year-old pastor from Frenchville, Maine.

In fact, Price can buy an iPhone, but AT&T, the exclusive U.S. service provider for the popular cell phone, doesn't offer wireless service in his area and has no plans to any time soon. Since Price can't use Verizon, which works fine in his area, an iPhone would be, as the techie community says, a useless "iBrick." Even more frustrating: Price can see Canada, where service for the iPhone is offered, from his window.

You can't have it all

Price's case points to one of the wireless industry's most anticonsumer practices: handset exclusivity. Deals between cell-phone makers and wireless carriers shackle almost all of the most popular phones to one carrier. For now, if you want an iPhone, you'll have to use AT&T. A Palm Pre? You're with Sprint.

The only real beneficiaries of these exclusive deals are the U.S. wireless carriers, which wield enormous power over customers and handset manufacturers. In most of the rest of the world, buying a cell phone and choosing a carrier are separate transactions. Changing carriers is as easy as changing a data card in the handset.

Choice may be coming

There are a few encouraging signs for U.S. wireless consumers. Senators from both parties have raised concerns about handset exclusivity with the Federal Communications Commission, which announced that it would open a formal proceeding.

In July, the Senate antitrust panel outlined steps it wants the FCC and the Department of Justice to take to spur competition in the industry, including a review of handset exclusivity deals.

Consumers Union is pushing the FCC and Congress to ban all cell-phone exclusivity agreements and create a truly competitive wireless market for consumers.

What you can do

Find out whether the phone you’re considering is tied to just one carrier.

Even if it can be moved to another carrier, you might still need to “unlock” it. Ask how much it will cost to do that.