FCC Blasts T-Mobile's 365-Day Phone Locking, Proposes 60-Day Unlock Rule:
An anonymous reader quotes a report from Ars Technica: Citing frustration with mobile carriers enforcing different phone-unlocking policies that are bad for consumers, the Federal Communications Commission is proposing a 60-day unlocking requirement that would apply to all wireless providers. The industry's "confusing and disparate cell phone unlocking policies" mean that "some consumers can unlock their phones with relative ease, while others face significant barriers," Commissioner Geoffrey Starks said at yesterday's FCC meeting. "It also means certain carriers are subject to mandatory unlocking requirements while others are free to dictate their own. This asymmetry is bad for both consumers and competition."
The FCC is "proposing a uniform 60-day unlocking policy" so that "consumers can choose the carrier that offers them the best value," Starks said. Unlocking a phone allows it to be used on a different carrier's network as long as the phone is compatible. The FCC approved the Notice of Proposed Rulemaking (NPRM) in a 5-0 vote. That begins a public comment period that could lead to a final rulemaking. A draft of the NPRM said the FCC "propose[s] to require all mobile wireless service providers to unlock handsets 60 days after a consumer's handset is activated with the provider, unless within the 60-day period the service provider determines the handset was purchased through fraud."
"You bought your phone, you should be able to take it to any provider you want," Rosenworcel said. "Some providers already operate this way. Others do not. In fact, some have recently increased the time their customers must wait until they can unlock their device by as much as 100 percent." Rosenworcel apparently was referring to a prepaid brand offered by T-Mobile. The NPRM draft said that "T-Mobile recently increased its locking period for one of its brands, Metro by T-Mobile, from 180 days to 365 days." The 365-day rule brought Metro into line with other T-Mobile prepaid phones that already came with the year-long lock. We reached out to T-Mobile and will update this article if it provides a comment. A merger condition imposed on T-Mobile's purchase of Sprint merely requires that it unlock prepaid phones within one year. T-Mobile imposes different unlocking policies on prepaid and postpaid phones. For postpaid devices, T-Mobile says it will unlock phones that have been active for at least 40 days, but only if any associated financing or leasing agreement has been paid in full.
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1moI'll start by saying I think making this policy is an overreach by the FCC. I don't think this is the right approach. However to say this is anti consumer is a bit of a reach on carriers to claim, they already went back to inflated plan pricing for device deals just like contract days. Phone manufacturers should subsidize devices if they want to earn market share. Carriers should focus on services and plans to earn market share.