Regulators open inquiry into wireless industry

By John Poirier

WASHINGTON (Reuters) - U.S. regulators launched an inquiry on Thursday into competition in the wireless industry, a step that could lead to probes of other sectors.

The Federal Communications Commission issued a notice of inquiry as part of a congressionally mandated annual assessment of the industry, which is dominated by Verizon Wireless, AT&T Inc, Sprint Nextel Corp and T-Mobile, a unit of Deutsche Telekom AG.

Verizon Wireless is a joint venture between Verizon Communications Inc and Vodafone Group Plc.

The inquiry comes as the FCC is examining exclusive deals between handset makers and carriers, such the one making AT&T the sole U.S. service provider for Apple Inc's popular iPhone.

Exclusive deals are common among the biggest carriers but have recently faced strong opposition from rural carriers, which say they lack the clout to make deals to carry the most popular phones.

FCC Chairman Julius Genachowski said the agency is seeking data on how competition affects consumers. He also said the wireless inquiry could lay the foundation for future questions in other sectors such as cable and broadband.

"I hope the new wireless competition report will help set a standard for fact-based, analytically deep analysis of the mobile industry," Genachowski, a Democrat, said during an open meeting with a full slate of commissioners.