The Federal Communications Commission on Thursday is expected to approve three broad-ranging inquiries on the wireless industry that could spur competition and innovation.

The move will pit consumer groups against AT&T (T), Verizon Wireless and other wireless firms.

The consumer side argues that the companies thwart innovation and overcharge users. Carriers say the U.S. already has the world's most competitive industry.

Refereeing will be new FCC Chairman Julius Genachowski, who will influence where the inquiries go.

The FCC is expected to give the OK to look at factors that encourage innovation and investment and to look into industry billing practices and wireless market conditions in general.

The inquiries likely will take months. In the end the commission could force wireless firms to change business practices in an effort to enhance competition and benefit consumers.

"It's possible the FCC will consider substantial changes to how it views the wireless market and the state of competition," said Chris Riley, who provides legal counsel for Free Press, a nonprofit focused on media and communications ownership.

That the FCC is tackling such a broad range of factors "is new; it's a big step," Riley said.

Free Press, along with the Consumer Federation of America, Consumers Union, Media Access Project, New America Foundation and Public Knowledge, gave their views on "numerous problems with the wireless market" in a joint filing submitted to the FCC on July 13.

They told the FCC, among other things, that "prices are rising, consumer choice is artificially limited and valuable innovations are being delayed or kept from the market altogether."

Riley says the FCC declared the wireless industry to be fair and competitive. But it did so without conducting a detailed evaluation, he says.

"I think they will emphasize a thorough analysis of data, more than any commission in history," he said.

On the other side, Christopher Guttman-McCabe, vice president of regulatory affairs for the Cellular Telecommunications Industry Association, says CTIA also believes the FCC will delve deeply. CTIA represents wireless carriers and other firms in the wireless industry.

"In the past the FCC focused primarily on competition among carriers, but the whole ecosystem is expanding," Guttman-McCabe said. "We think they'll broaden their view.

"We look at this in a positive light. It's our job to convince the FCC we have a vibrant industry that is innovating."

He says the FCC will probably look into such areas as competition among handset makers and the system for developing and distributing software applications.