Verizon says it will limit new handset deals

Boucher, chairman of the House Energy and Commerce Subcommittee on Communications, who met with McAdam on Friday, praised Verizon's actions.

"Verizon has taken an important and forward-looking step. I think it does ensure that smaller carriers get rapid access to the latest devices," Boucher told Reuters.

Smaller telecommunications companies and consumer advocacy groups also have complained that bigger companies use their size to squeeze out smaller rivals by refusing roaming deals, or block applications like the Skype Web-based phone service.

(Additional reporting John Poirier; Editing by Phil Berlowitz, Tiffany Wu, Richard Chang and Carol Bishopric)