Capitol Hill has been ringing with arguments over cell phone exclusivity—that is, exclusive relationships between mobile carriers and mobile devices.

The most recognizable example of this is probably AT&T and Apple. If you want an iPhone, your only option is to sign a contract with AT&T. But that could change if Congress decides to ban exclusivity deals in the cell phone industry.

We’re taking a look at what experts say are the pros and cons of such regulation.

One of the most common arguments for banning exclusivity deals comes from Democratic US Representative Edward J. Markey. Speaking with The Boston Globe, he says...

“I’ve held hearings warning that wireless carriers were exerting far too much control over... features, functions, and applications... I do believe it stultifies innovation and unquestionably diminishes consumer choice.”

But David Pogue of the New York Times thinks exclusivity deals do just the opposite for innovation.

“Look at Visual Voicemail, which displays your voicemail list so you can get to them in any order, without being held hostage to your carrier’s prompts. That’s a very cool iPhone breakthrough that required Cingular (the iPhone’s original carrier) to make special changes to its network — collaboration that probably wouldn’t have happened if Cingular hadn’t had the incentive of exclusivity.”

Another argument for opposing exclusivity is its stifling effect on competition and prices. Speaking with TechVi.com, James Papadopoulos from Tech Spank dreams of a day when more choices will drive down costs.

“If you have two carriers of the iPhone, I’m pretty sure I’m not going to be paying 99 a month for my service anymore. It’s going to start getting wittled down pretty quickly.”

But Paul Roth, President of AT&T Retail Sales and Services contends exclusivity helps keep hardware costs down, pointing out his company’s deal with Apple has driven the cost of an iPhone down from $399 to $99.

“Exclusive device deals lead to lower prices. Consumers pay well under what AT&T pays Apple for the iPhone. It’s a standard US industry practice for the device [to be] sold below its cost in return for a two-year agreement.” (Betanews.com)

Are you in favor of banning exclusivity deals in the cell phone industry or do you think they actually create innovation and drive down hardware costs?