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Bundling vs Gouging

Members of the FCC are again rattling their sabers on an open network access issue. In his article, Grant Goss looks at how FCC members are "warning" the wireless service providers about potential oversight intervention and/or regulation.

Personally, I think it is a little early to start "warning" people about something that hasn't happened. Yet, I liked the observation from Robert Frieden about handset subsidies. Wireless service providers talk about how two year contracts are designed to subsidize handset costs. However they don't give any type of discount if you have your own phone. That would be an alternative model to answer my question about locked vs unlocked handsets.

As against regulation as I am, I would have no problem with the FCC asking the following question if subsidized plans were more expense than unsubsidized plans:

"Are you bundling product and service? Or are you gouging because you can?"

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  Posted by jmyers on January 30, 2008 8:00 AM |

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