U.S. Justice Department Launches Antitrust Investigation Against Four Major Operators

According to foreign media reports, according to informed sources, the U.S. Department of Justice has launched anti-monopoly investigations against the four major operators AT&T, Verizon, T-Mobile and Sprint because they allegedly conspired to disable eSIM technology and prevent users from easily replacing wireless operations. Business.

Sources said that the department sent a letter to these four major operators in February asking them to provide relevant information.

The source also stated that the Ministry of Justice had conducted investigations on the matter as early as 2016, but eventually gave up the investigation. It was reported that Apple’s complaint was a reason that prompted the US Department of Justice to investigate the four major operators at that time. .

Most mobile phones use SIM cards, which contain the user's unique identification information and are inserted into the device so that the phone can work properly. When changing operators, people usually need to buy a new SIM card. Early 2016 The eSIM technology introduced is embedded in mobile phones and other devices, so people no longer need SIM cards.

The antitrust department is investigating whether the four major carriers have colluded in killing eSIM technology. This technology allows customers to remotely change wireless providers without inserting a new SIM card into the device.

The allegations faced by AT&T and Verizon in the United States were that they were collaborating with the GSMA, trying to establish standards to allow them to lock the device onto their networks.

Earlier, the New York Times reported that AT&T and Verizon were under investigation. The paper also reported that the Ministry of Justice has asked the Global Mobile Communications Association (GSMA) to provide relevant information.

Two people familiar with the matter said that the investigation began about five months ago. At least one device manufacturer and one wireless operator had previously filed a formal complaint with the Ministry of Justice.

Representatives of the Ministry of Justice, AT&T, Verizon and GSMA declined to comment.

A Verizon spokesperson confirmed in a statement that the company had cooperated with the Ministry of Justice for months of investigation because several mobile device manufacturers disagreed with the development of the eSIM standard.

At the heart of this survey is whether the largest wireless operator in the United States is working with the GSMA to try to influence mobile technology in a secret manner and maintain its dominance in a manner that harms competition and consumers' inequities, thereby hindering innovation in the broader mobile industry. .

AT&T and Verizon jointly control 70% of wireless users in the United States. A technology that can easily change operators may result in more users churn and fewer users.

The survey highlights the actions of Makan Delrahim, the antitrust supervisor at the Ministry of Justice, to promote the fight against opaque intellectual property standards.

At the same time, the Justice Department is suing AT&T to prevent it from merging with Time Warner. Delrahim said that the deal will hurt competition and bring higher prices to cable TV subscribers.

Four insiders said several device manufacturers and other wireless companies expressed similar concerns after filing formal complaints against AT&T and Verizon. Another person familiar with the matter said that the survey may also include Other major US operators.

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