AT&T, Verizon face US probe over mobile tech

Bloomberg

AT&T Inc. and Verizon Communications Inc. are under investigation by US antitrust officials over whether the companies colluded to make it tougher for consumers to switch wireless carriers, according to three people familiar with the matter.
Apple Inc., a pioneer in the eSIM technology that makes switching easier, was joined by other equipment makers in complaining to the government about the carriers’ practices, two other people with knowledge of the matter said.
The department issued demands to the companies and the GSMA, a mobile industry standards group, for information on possible collusion, said the people, who asked not to be named because the matter isn’t public.
Regulators have pressured the phone companies to make it easier for consumers to switch carriers. The big four — Verizon, AT&T, T-Mobile US Inc and Sprint Corp — agreed in 2013 to let consumers use smartphones on other networks after contracts expire. The following year President Barack Obama signed legislation giving consumers the freedom to switch between wireless carriers without having to purchase a new phone.

‘Difference of Opinion’
Verizon spokesman Rich Young said in an emailed statement that the matter is “a difference of opinion with a couple of phone equipment manufacturers regarding the development of e-SIM standards. Nothing more.” GSMA declined to comment. A spo-keswoman for the Justice Department didn’t respond to a request seeking comment. AT&T said it’s aware of the investigation and has provided information to the government in response to its requests. The company said it “will continue to work proactively within GSMA, including with those who might disagree with the proposed standards, to move this issue forward.”
Verizon and AT&T fell on the news. Verizon closed down 1.1 percent to $47.90 after losing as much as 2.5 percent. AT&T, which is fighting the Justice Department’s efforts to block its takeover of Time Warner Inc, dropped 1.9 percent but recovered to close at $34.67, down 0.4 percent.
While the Justice Department is investigating AT&T and Verizon, it sent letters to the four major carriers when it opened the probe in February, two people with knowledge of the matter said.
The New York Times reported on the antitrust inquiry. The technology in eSIM — short for electronic SIM — allows users to switch between carriers via a settings menu directly from their phone or tablet. This makes it easy for consumers to swap between wireless carriers without physically popping the SIM card chip out or
contacting their wireless carrier.