Senators Challenge AT&T's Exclusive IPhone Deal

U.S. senators on Thursday struggled at a committee hearing to understand AT&T's explanation for how exclusive deals for phones like the iPhone stimulate innovation.

The hearing was called by the Committee on Commerce, Science and Transportation to study the effect that long-term exclusivity deals have on the wireless market and particularly on people living in rural areas. It was called partly in response to a filing that the Rural Cellular Association made last year to the Federal Communications Commission, arguing that exclusive handset deals turn rural customers into second-class citizens because in some cases they have no option to buy the latest and most popular phones.

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