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Jim Response to the Wall Street Journal
Posted by Jim Gerace in Net Regulation on October 24, 2007, 12:46 PM EST
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The Wall Street Journal article (“Free My Phone,” Oct. 22) urges “government action” to “free” a vibrant handset marketplace.  Put aside for a second the fact that in less than three years U.S. operators have introduced over 2,500 devices.  The Journal makes an increasingly popular but mistaken assumption that the European government-mandated model of unlocked handsets means better consumer choices. 

 

Let’s start with the European experience.  Viruses and Trojans are part of the unlocked handset experience.  Just imagine children’s mobile phones receiving some of the indecent messages that come into e-mail boxes everyday.  “Open” devices simply lower standards. 

 

In contrast to Europe, handsets provided by U.S. carriers have software that protects consumers from fraud and theft.  In 2004, Verizon Wireless took an additional step and refused to participate in a national wireless phone directory, effectively halting the project.  A year later – in the first of its kind lawsuit, Verizon Wireless began to prosecute pretexters who tried to sell confidential customer telephone records.  As these examples demonstrate, we offer the consumer a complete system. 

 

Our business is service, not hardware.  Any comparisons to a PC/Internet ecosystem are misplaced.  We deliver safe and reliable service.

 

Verizon is hardly alone.  The U.S. has more than 160 wireless carriers, who serve over 240 million subscribers.  In this fiercely competitive market, U.S. operators obsess over quality customer experiences and choices.  Carriers customize handsets to optimize voice quality and data services. 

 

Contrary to the Journal’s assertion, Europe’s one-size fits all portability comes at the expense of consumer choice and price.  Even though portable SIM cards can go from handset to handset, high roaming costs mean most consumers opt for a new SIM card in each country.  Certainly sounds more expensive.  Turns out the U.S. has lower prices for voice and data services than anywhere in the world I can name.





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