Verizon Puts Brakes on Exclusivity
Responding to pressure from Congress and the Justice Department on mobile carriers to avoid exclusive deals with phone manufacturers, Verizon Wireless' CEO wrote a letter this week vowing to relax future deals.
Verizon Wireless CEO Lowell McAdam said in the letter, which went to several members of Congress, that Verizon will allow wireless operators with fewer than 500,000 sell Verizon-exclusive phones after a six-month window. The new arrangement is effective immediately.
"This new approach is fair to all sides," McAdam wrote in the letter. "Exclusivity arrangements promote competition and innovation in device development and design. We work closely with our vendors to develop new and exciting devices that will attract customers. When we procure exclusive handsets from our vendors we typically buy hundreds of thousands or even millions of each device. Otherwise manufacturers may be reluctant to make the investments of time, money and production capacity to support a particular device."