Biggest Carriers Agree to Unlock Cellphones When Subscribers Move to Another Network
Major wireless carriers agreed to voluntary standards for unlocking both postpaid and prepaid wireless devices, FCC officials said Thursday during a presentation at the agency’s December meeting. The commission released a letter from CTIA President Steve Largent detailing the commitments (http://bit.ly/1fo0mrg). Carriers including Verizon Wireless, AT&T, Sprint, T-Mobile and U.S. Cellular agreed to the pact, which had been the subject of talks leading up to the meeting (CD Dec 12 p1).
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"Consumers win when they are armed with the right information and know their options, especially when it comes to navigating how to unlock a wireless phone after completing a contract,” said FCC Chairman Tom Wheeler. “Today’s commitment by wireless providers will provide consumers with more information about when, and how, to move their devices from one network to another compatible network, should they choose to do so. The FCC stands ready help consumers understand these new policies in partnership with industry.” Carriers that lock devices will notify customers that their devices are eligible for unlocking, said Largent’s letter. Notice to prepaid customers can take place at point-of-sale, at time of eligibility or through a clear statement of the policy on the carrier’s website. Carriers can charge “reasonable” fees for unlocking devices no longer used on their networks, officials said.
Wheeler threatened on Nov. 14, the date of the commission’s November meeting, that the FCC would step in if carriers didn’t act voluntarily. “Enough time has passed, and it is now time for the industry to act voluntarily or for the FCC to regulate,” Wheeler wrote in the letter to Largent (http://bit.ly/1bt9qGV).
Commissioner Ajit Pai said the agreement goes only so far and doesn’t address concerns raised by a Jan. 26 ruling by the Librarian of Congress that effectively made it illegal to unlock new phones (http://1.usa.gov/ZaI6qS). Violators face heavy fines and prison time. “It does not empower consumers to unlock phones themselves, but instead keeps carriers in control of the process,” Pai said. “If a consumer forgets to unlock his cellphone before recycling it, carriers can still charge that new, legal owner an unlocking fee. If a consumer needs to travel abroad for business or to visit his family, he cannot get low rates from a foreign provider without his domestic carrier’s say-so. And if a low-income consumer thinks his prepaid plan doesn’t have a contract, well, apparently his carrier can make him wait a year before unlocking the phone."
NTIA will review the agreement in light of its September petition that asked the commission to initiate a process of setting rules allowing subscribers to use their equipment with any compatible network, said NTIA Administrator Larry Strickling.
"This is a welcomed move that should give consumers more flexibility and choice in the wireless market,” Consumers Union said. “The ability to unlock your phone is only effective if consumers are aware they can unlock, which is why we are encouraged that this announcement places an emphasis on notifying customers of their eligibility. Consumers Union is committed to monitoring the agreement to ensure that it works for consumers and urges all carriers to adopt these new policies."
"Clear, fair and timely unlocking policies that enable consumer choice are good for competition,” said T-Mobile Senior Vice President Tom Sugrue. “There is additional progress to be made on unlocking, such as the support of a robust secondary market in mobile devices, and we will continue working with the FCC to enhance the new policies announced today.” Competitive Carriers Association President Steve Berry also praised the agreement. “Unlocking is not only significantly beneficial for consumers, but it is also important for smaller and regional carriers who may still have trouble gaining access to the most iconic, advanced devices from equipment manufacturers,” he said. “While the practical application remains to be seen, we are pleased to see that several carriers have agreed to modify their unlocking policies, and CCA continues to encourage the FCC to engage the equipment manufacturers in the device availability discussion."
"We will recommend that this set of principles be included in the CTIA Consumer Code for Wireless Service, in accordance with CTIA’s bylaws,” Largent said in a blog post (http://bit.ly/1e8wIsV). “Once they have been adopted, the companies will move quickly to implement these principles.”