ruling is what allowed the AT&T network to be opened up to competition and basically was the result of AT&T trying to stop a company from adding a device which was acoustically not electrically to their network.
The 1968 Federal Communications Commission allowed the Carterfone and other devices to be connected directly to the AT&T network, as long as they did not cause damage to the system. This ruling (13 F.C.C.2d 420) created the possibility of selling devices that could connect to the phone system using a protective coupler, and opened the market to customer owned equipment.
Many companies including Skype
have tried to apply
this ruling to the wireless market and changing the practice of bundling service and device with long-term contracts consisting of early-termination penalties. I actually thought this matter was over
But today I came across a press release
from The Phoenix Center which says that if the FCC
were to regulate the way the mobile industry operates, consumers would lose out. Their point is that the result of such moves will be higher costs for mobile devices with no guarantee of lower service costs.
This is why their press release is right:
Long-term service contracts do indeed partially include financing charges on the device which you use.