The Federal Communications Commission (FCC) is making it significantly easier for consumers to unlock their mobile phones from their carriers. The agency has proposed new rules requiring all devices to be unlocked just 60 days after purchase, a move that could have wide-ranging impacts on current phone plans and buying trends.
Mobile phones purchased from carriers are typically locked to those carriers until the contract ends, or the phone is paid off. Despite improvements over the years, the process of unlocking a phone remains unknown to many consumers. Unlocking a phone allows it to work with different mobile networks, not just the one it was initially purchased from.
FCC Chairwoman Jessica Rosenworcel announced the Notice of Proposed Rulemaking (NPRM) in a press release on Thursday. “When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice,” Rosenworcel stated. “That is why we are proposing clear, nationwide mobile phone unlocking rules.”
The proposed rule would require carriers to provide unlocking services 60 days after activation. While this standard is seen as a welcome change, it may face challenges in the current phone and wireless markets. Many consumers still opt for installment plans to pay off their phones over several years, despite the decline of the traditional two-year contract.
The NPRM represents the stage of FCC rulemaking where a draft rule is created, but public feedback has not yet been solicited. On July 18, the agency published the full document and opened it for public commentary. This is a crucial opportunity for all stakeholders, including mobile providers and consumers, to voice their concerns and shape the future of phone unlocking rules.
Chairwoman Rosenworcel emphasized the importance of transparency and consistency in promoting real competition. “Mobile phone unlocking can increase consumer choice and competition in the wireless service provider marketplace. Updated unlocking rules would give consumers more flexibility when switching service providers, increase competition by reducing consumer switching costs, and reduce customer confusion by applying the same unlocking rules to all mobile service providers,” she said.
The NPRM will seek public comment on requiring all mobile wireless service providers to unlock phones 60 days after activation. It will also gather feedback on whether this requirement should apply to existing contracts or only future contracts and how it might impact service providers’ incentives to offer discounted phones. Additionally, the proceeding will consider whether an unlocking requirement would benefit smaller providers, new entrants, and resellers by increasing the availability of phones on the secondary market.
