Sprint CEO: 'Would I Like To Have The iPhone? Sure'Sprint CEO: 'Would I Like To Have The iPhone? Sure'

Sprint CEO Dan Hesse recently weighed in on the Federal Communication Commission's investigation into the competitiveness of the wireless industry. One interesting revelation is that Mr. Hesse wouldn't mind selling the iPhone on Sprint's network -- but he's not willing to give up certain freedoms to do so.Speaking to The New York Times about industry competition, Hesse indicated that he'd like for his network to be able to offer the iPhone. However, he argued, "But would I want all the negatives that come with it, the government taking away all the freedom and flexibility and innovation out of the market with a giant sucking sound?"

Either he didn't provide an answer to that question, or the The New York Times didn't publish it. Keep in mind, Sprint is just as guilty as any of the carriers at offering certain handsets exclusively that others don't (i.e., the Palm Pre).

One of the issues being explored by the FCC is whether or not the exclusive distribution contracts -- such as the one between Apple and AT&T -- are truly fair. Smaller, regional wireless network operators and some consumer organizations argue that the contracts limit choice and competition.

The wireless industry contends that there is plenty of competition. AT&T, Sprint and Verizon have all weighed in, saying that most Americans are covered by at least four different networks and have their choice of dozens of handsets.

Joan Marsh, AT&T's VP of regulatory policy, said, "You've got to ask yourself what's broken here. Whatever features and capabilities a consumer wants, there is a device available from any carrier the customer prefers. As long as customers have that array of choices, why not let the marketplace work?"

This issue is sure to provoke arguments from all perspectives. The smaller wireless network operators want to be able to sell better, fresher handsets to their customers sooner in order to keep their business. With the exclusive deals between companies such as Sprint and Palm and AT&T and Apple, they often don't have that opportunity.

We know that Sprint's agreement with Palm expires at some point in early 2010, as Verizon Wireless has said that it will begin selling the Palm Pre in that time frame. AT&T still has a deathgrip on the iPhone, which it has sold exclusively in the U.S. for more than two years. Neither AT&T nor Apple has said exactly when the contract ends.

Will the FCC force Apple to sell the iPhone via other carriers? What will the FCC decide? Right now, it is in the earliest phases of looking into the matter. The FCC's new chairman, Julius Genachowski, is leading the investigation into the exclusivity deals and other matters affecting competition in the marketplace. I think some of the impetus here is that Mr. Genachowski is looking to make a mark and set the tone for his time at the helm of the FCC.

Depending on the findings of this initial inquiry, the FCC may launch a full investigation. Until then, the exclusivity agreements are here to stay.