Handset Unlocking Rules Could Harm Consumers: ITIF
The Information Technology and Innovation Foundation warned of potential unintended consequences if the FCC approves industrywide handset unlocking rules, as proposed in a July NPRM (see 2407180037). Comments were due Monday in docket 24-186. “The NPRM’s tentative conclusions in favor…
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[of] a uniform 60-day unlocking requirement overstate the benefits of the Commission’s proposal relative to its costs,” ITIF warned. Handsets are often tied to a carrier because they are subsidized, the group added. “This bargained-for exchange is beneficial to consumers who may be more price sensitive and thus willing to forgo some future flexibility in exchange for more money in their pockets at the time of purchase,” ITIF said: “Mandatory unlocking denies consumers this choice.” Incompas supports unlocking requirements, President Angie Kronenberg said Monday. "The practice of locking phones makes it more difficult for consumers to change providers,” she said: “Unlocking requirements allow customers to switch networks more easily, which means larger providers are incentivized to compete for customers rather than locking them into a plan -- enabling smaller providers to better compete.”