Regional providers petition Congress on roaming practices

It seems that the AT&T/Cingular merger might be one of the main reasons for this problem to come to light:

Consolidation in the wireless industry has reduced the number of roaming partners for small, rural and regional home carriers, and as a result, smaller carriers are frequently forced to purchase roaming services for their customers at unjustifiable high roaming rates. Some carriers are also restricting roaming to basic voice service and do not permit roaming for newer data services. The high wholesale charges smaller carriers are forced to pay have a disproportionate and negative impact on low-income, minority and rural consumers who often rely on small, rural and regional carriers for service.

We’re not sure exactly how they’re going to accomplish their mission, but we have to agree with them. Companies like Cricket are forced to charge exorbitant roaming rates, because they themselves are getting the raw end of the deal. If they got a cheaper rate, they’d be able to pass the buck and have a more attractive service for regional customers. Like the 700 MHz spectrum auction, this is another case of the big companies displaying their need to stay in power. They’re probably laughing all the way to the bank when they get those checks from the regional companies for roaming. But they can charge that much because there are no other options. They’ll argue that it’s their network, and they can use it as they will. But in the end, it screws the consumer. We’re all for competition and all, but competition is much better when all parties are on similar ground. Two companies in the US clearly have an advantage, and they’re basically shaking down the small guys. Of that we cannot approve. [Business Wire] [Alliance for Fair Roaming Access]]]>