Chapter 1: IS in Business{0}
“FCC Puts Wireless Industry under the Microscope”
The Federal Communications Commission announced that they were going to launch a broad investigation into the leading wireless companies in an effort to find regulations that could help citizens get better, faster and cheaper connections. This announcement was directed at certain wireless companies, such as AT&T, Verizon, Sprint, and T-Mobile, who may engage in anti-competitive behavior by utilizing their significant market power within the wireless industry.
The committee, which was composed of Republicans and Democrats both agreed that although these proposed regulations should not limit innovation of the wireless industry, they did, however, seem to differ on the priorities and main focus of this future investigation. The Republicans questioned the importance of these regulations as a whole, while the Democrats urged in the importunacy of consumer protection.
According to Michael Porter’s, “5 Forces Model,” supplier power is described when buyers have few choices on whom to purchase their products from, and have little or no say on what they are forced to pay for these certain services or products. There is a drive to protect consumers from this, as well as oligopolies and those companies who hold a large portion of the market share and use these advantages to engage in unfair business activities. I feel that even though it may seem like we, as consumers have a choice when it comes to purchasing a wireless carrier, but in reality these choices are very limited. We have all been subjected to ridiculously high “overage charges,” or “roaming fees” and lengthy, confusing customer contracts. I look forward to learning what the FCC will find with this investigation into the wireless industry.
References:
Singel, Ryan (2009) FCC Puts Wireless Industry under the Microscope. Wired News, 2009.
Retrieved from:
http://www.wired.com/epicenter/2009/08/fcc-wireless-study/