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If you’ve ever tried to switch your phone carrier, only to find that the phone you paid for was locked by your previous phone provider, you may find comfort in knowing that those days may soon be over.
The Federal Communications Commission is seeking to put an end to a controversial practice adopted by many phone service providers with a new proposal that would limit their power over consumers’ phones.
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Currently, some cell phones have software installed on them that prevents consumers from using them with different carriers, essentially “locking” the phone, regardless of whether the network is technically compatible with the device. Users can unlock their phones, but different carriers have different rules about how to do this, and some require certain conditions to be met before they can unlock their phones.
For example, according to Federal Communications Commissionit is currently legal for providers to refuse to unlock phones for former customers who are not in “good standing” or have not met their “service contract or device financing plan or paid the applicable early termination fee.”
Under the Federal Communications Commission (FCC). an offerAll mobile phone providers will be required to unlock mobile phones after 60 days of activation.
“Real competition benefits from transparency and consistency,” FCC Chairwoman Jessica Rosenworcel said in a statement. “That’s why we’re proposing clear, nationwide rules for unlocking cellphones. When you buy a phone, you should have the freedom to decide when to switch to the carrier you want, and the device you own shouldn’t be locked into practices that prevent you from making that choice.”
Rosenworcel claims the proposal would increase competition among phone providers as consumers would have more choices. She also said it would reduce the costs consumers would have to face when switching providers. The proposal would also reduce public confusion as the same rules regarding unlocking would apply to all cell phone companies.
The proposal will face a preliminary vote in an open session on July 18. The FCC will seek input on whether the rule should apply to existing or future contracts. It will also seek input on how the rule might affect the discounts and incentives that carriers offer for some phone plans, and how small businesses and resellers will be affected by the surge in phones on the secondary market.
The FCC’s move comes after several public interest groups announced in February that Named The commission should develop a rule for phone unlocking after T-Mobile announced its acquisition of Mint Mobile last year.
Verizon opposes FCC phone unlock proposal.
However, Verizon (F Z) which has a 60-day phone unlock requirement due to a previous acquisition, has rejected the idea of developing a phone unlock rule. In Deposit To the FCC in March, Verizon claims the unlock rule could have a negative impact on phone discounts.
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“Requiring carriers to unlock their mobile wireless devices—which often contain software that prevents them from operating on another carrier’s network—allows consumers to switch providers more easily,” Verizon’s filing said. “But at the same time, an unlocking requirement may discourage a carrier from significantly reducing the price of a phone because it cannot recover its subsidies if the customer immediately switches to another carrier.”
Verizon also claims in the filing that the rule may have “complicated trade-offs and consequences for consumers and carriers,” and that it is not clear whether it will benefit customers.
“Providers rely on device locks to maintain their ability to offer such subsidies,” Verizon said. “In fact, device lock periods can significantly benefit low-income consumers by making devices more affordable, lowering the barrier to entry for mobile service.”
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