Back in June, the Federal Communications Commission (FCC) has proposed a new rule, under which carriers will have to unlock your iPhone or Android smartphone within 60 days of activation.
Two of the biggest US carriers, AT&T and T-Mobile, are now arguing against this, claiming that it’s consumers who will suffer if they are forced to comply …
FCC proposal to make carriers unlock your iPhone
While some people prefer to buy their iPhone direct from Apple, and to pay the purchase cost in full, others buy their phones from carriers or elsewhere on a so-called subsidised contract.
This gives them a lower up-front fee, but the balance of the cost of the device is paid back over a minimum contract duration, typically of two years.
Carriers lock the phone to their network so you cannot switch to a different provider within the contract term, but usually don’t automatically unlock the device once that period ends.
Even if you ask them to do so, there is no rule about how long they can take, and that’s something the FCC wants to change, by requiring it to be done within 60 days.
This rule already applies to Verizon due to special requirements applicable to the frequencies it uses.
Carriers claim this will hurt consumers
Top comment by Nutmac
There are only two reasons why this could be good for consumers:
Locking discourages consumers from switching to another carrier.
Locking forces consumers to purchase the carrier's pricier international roaming feature.
Oh, did I say consumers? I meant carriers. They are more or less claiming that these benefits (to them) translate to passing down the savings back to the consumers, as in the trickle-down economy.
The FCC’s aim is to benefit consumers, and the proposal has been welcomed by consumer advocacy groups, who say that freeing us from carrier lock-ins will make it easier to shop around for the best plan.
However, AT&T and T-Mobile each claim that it will end up costing more, reports Wired.
T-Mobile and AT&T say US regulators should drop a plan to require unlocking of phones within 60 days of activation, claiming that locking phones to a carrier’s network makes it possible to provide cheaper handsets to consumers […]
T-Mobile claims that with a 60-day unlocking rule, “consumers risk losing access to the benefits of free or heavily subsidized handsets because the proposal would force providers to reduce the line-up of their most compelling handset offers” […]
AT&T lodged similar complaints as T-Mobile, saying in an October 7 filing that the FCC’s proposed rules would “make handsets less affordable for consumers, especially those in low-income households.”
Consumer groups are united in disagreeing.
An October 18 filing supporting a strict unlocking rule was submitted by numerous consumer advocacy groups including Public Knowledge, New America’s Open Technology Institute, Consumer Reports, the National Consumers League, the National Consumer Law Center, and the National Digital Inclusion Alliance.
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