Rural carriers complain to FCC about iPhone exclusivity

Many potential iPhone customers in the US have been irked by Apple’s exclusive deal with AT&T, but that marriage is now coming under pressure from another source: small, rural cellphone providers. At issue is the the fact that AT&T does not offer the iPhone for sale in many rural areas where they only offer roaming service.

And, since the exclusive deal prohibits the local cell providers from selling the iPhone, that means that inhabitants of those areas—like much of Vermont, and rural areas in 15 other states—will not be recipients of the iPhone love.

So it is that the Rural Cellular Association, a trade group of 80 small rural providers, plans to petition the FCC to look into the legality of exclusive deals such as the one between AT&T and Apple. According to the Wall Street Journal, most of these small carriers serve 500,000 people or fewer, though those numbers do add up. Ars Technica highlights the case in Alaska, where residents had trouble legally using the iPhone, due to service restrictions imposed by AT&T.

The FCC has apparently intervened on similar issues in the past, as Ars points out, such as forcing Direct Broadcast Satellite providers to offer their services in Alaska and Hawaii. Whether or not that precedent will cover the RCA’s request remains to be seen.

Category: News

Posted by Dan Moren on May 21 2008, 12:22 PM ET

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