Verizon to Shorten Exclusive Rights to Phones

Communication giant Verizon Wireless said it will shorten the period of its exclusive rights to mobile phones made by Samsung Electronics Co. and LG Electronics Inc. that will allow small carriers to sell new devices to the public.

In April, Verizon has offered the two mobile phone manufacturers to sell its devices to the Associated Carrier Group (ACG) which consists of 25 small rural carriers, Verizon spokesman Jeffrey Nelson said on Friday.

According to the proposal, Samsung and LG will sell its mobile phones to small carriers six months after these have been introduced by Verizon. Meanwhile, the offer excludes other competitors of the communication giant.

When asked for comments, ACG expressed pessimism over the proposal, saying that this would not be enough.

According to ACG representatives, the six-month expiration period does not mean they can introduce the phone immediately since certain modification—which takes longer time—should be done so that the device can support their network.

For the past few years, small carriers have criticized telecommunication giants like AT&T, T-Mobile, and Verizon for holding the exclusive rights for devices which can last for years. In an effort to stop this practice, rural carriers filed a case before the Federal Communication Commission.

According to reports, LG and Samsung are the largest suppliers of mobile phones in the US market.