Reuters today reports that AT&T called claims that there is a lack of competition in the wireless industry unfounded, with senior executive vice president James Cicconi quoted as saying, "U.S. wireless prices are much lower than in any other major industrialized country."
Cicconi went on to say that texting prices had fallen because of package deals, "dropping almost 70 percent since January 2007," and argued that exclusive agreements between cell phone makes and wireless networks allow for both companies involved to split the marketing costs of “inventive but unproven” devices.
The comments follow news reports that the Department of Justice is looking into exclusive deals between carriers and manufacturers. First brought to light by several United States Senators who sent a letter to Michael Copps, acting chairman of the FCC requesting a probe, the FCC has since said it will investigate the industry’s practices. Sources told the Wall Street Journal earlier this week that the DOJ’s review is in its very early stages and is not yet a formal probe of any specific company.