June 22, 2009
Text-message fees recommended for antitrust scrutiny
The chairman of a Senate panel on antitrust issues last Tuesday called on the Federal Communications Commission and the Justice Department to scrutinize competitiveness in the cellphone industry, pointing to a 100% increase in some text messaging charges by four companies that control most of the market. The LA Times reports.
Sen. Herb Kohl (D-Wisconsin) said that from 2006 to 2008, the price charged by the four biggest carriers for sending and receiving such messages rose from 10 cents to 20 cents.
And the increases seemed to occur in "lock step" -- first from 10 cents to 15 cents and then from 15 cents to 20 cents, with each set of increases occurring within a period of months or even weeks, said Kohl, chairman of the Senate Judiciary Committee's subcommittee on antitrust, competition policy and consumer rights.
"Are these price increases the result of a lack of competition in a highly concentrated market?" Kohl asked.
Read full article.
Previously: - Lawmakers Question Increased Text Messaging Costs
The Permanent Link to this page is: http://www.textually.org/textually/archives/2009/06/023912.htm