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The Federal Communications Commission (FCC) is taking steps to address consumer frustration with the inconsistent unlocking policies of mobile carriers. In response, the FCC is proposing a uniform requirement that all wireless providers must unlock phones within 60 days of activation
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Commissioner Geoffrey Starks highlighted the issue during an FCC meeting, stating that the current landscape of “confusing and disparate cell phone unlocking policies” creates significant barriers for many consumers. He pointed out that while some carriers have accommodating unlocking procedures, others impose stricter rules, leading to an imbalance that detrimentally affects both consumer choice and market competition. “This asymmetry is detrimental,” Starks remarked, indicating the need for a standardized approach.
The FCC’s proposal aims to enable consumers to switch carriers without being hindered by arbitrary unlocking timelines. Unlocking permits a device to be used across different networks, provided the phone is compatible with those networks. The proposed rule, outlined in a Notice of Proposed Rulemaking (NPRM), was approved unanimously by a 5-0 vote, initiating a public comment phase that may precede final rule adoption. According to the draft, all mobile wireless service providers would be mandated to unlock devices 60 days post-activation unless fraud is suspected within that timeframe.
Examining T-Mobile’s Extended Locking Period
While discussing unlocking practices, FCC Chairwoman Jessica Rosenworcel noted that unlocking stipulations have previously been enforced during spectrum auctions and through merger agreements. However, persistent restrictions negatively impacting consumers remain a pressing concern. “If you buy a phone, it should be yours to use on any network you choose,” Rosenworcel stated. Some carriers have recently extended the length of time that consumers must wait before they can unlock their devices, some by up to 100%.
Rosenworcel specifically referred to T-Mobile’s prepaid service, which recently extended its locking period for the Metro by T-Mobile brand from 180 days to a full year. This adjustment aligns the Metro brand with T-Mobile’s other prepaid offerings that already required a 365-day lock. Following this change, the 365-day policy has drawn scrutiny as it poses additional limitations on consumers looking to switch services.
The merger conditions from T-Mobile’s acquisition of Sprint stipulate that prepaid phones must be unlocked within one year. However, T-Mobile applies different policies for prepaid and postpaid devices. For postpaid customers, T-Mobile requires that a phone be active for at least 40 days before unlocking, contingent upon completed payment of any financing agreements.
As the FCC draft proposal progresses, it remains to be seen how these regulations might interface with devices that have outstanding payments. The FCC intends to gather insights on how the proposed measures would impact the willingness of wireless providers to offer handset discounts linked to long-term payment plans and lower pricing structures.
A key question posed in the NPRM concerns whether unlocking should be mandated after a shorter or longer duration than the proposed 60 days. The FCC is exploring options such as unlocking devices upon activation or after the initial payment has been processed. They are also considering whether a standardized unlocking timeframe would facilitate easier enforcement compared to varying periods dictated by return policies or billing cycles. Additionally, the FCC is interested in identifying alternative strategies that could be employed by service providers to safeguard against fraud without resorting to locking handsets altogether.
Source
arstechnica.com