On Thursday, the FCC created an official proposal requiring carriers to unlock devices within 60 days of activation. This comes off the heels of a recent open meeting agenda included discussion about the potential of such a proposal.
The requirement would impact all mobile service providers, including postpaid, prepaid, and mobile virtual network operator (MVNO) carriers.
The FCC is looking to increase competition by empowering a wireless consumer with more choice in their wireless carrier. Customers can shop freely for lower rates, better benefits, and plans that fit their needs without a locked device holding them back.
As it stands, every carrier policy is a bit different for time requirements and process steps, and this proposal aims to eliminate that, decreasing consumer confusion. The document claims:
Some [carriers] abide by voluntary industry standards while others are subject to more stringent and enforceable unlocking requirements as a result of transaction commitments or rules specific to certain frequency bands.
docs.fcc.gov
Here is the full released document regarding the proposal.
Potential Benefits Of The Proposal
The FCC document details a number of potential benefits of this requirement.
It is mentioned that unlock policies can vary wildly between mobile providers. This requirement would allow for a single, consistent approach to device unlocking standards. Whether you are with Verizon, AT&T, or T-Mobile, you can have the same expectations on your device’s freedom.
It’s worth noting, that due to agreements made as part of spectrum acquisitions, Verizon already unlocks devices at 60 days. Effectively, Verizon is already abiding by this new proposal’s suggested rules.
The proposal does mean all wireless providers, so prepaid carriers like Boost Mobile, Mint, and Visible are also included.
In providing consumers with flexibility to choose their carrier, this puts more responsibility on the carrier to provide service worth keeping. Increased competition will have carriers making more pro-consumer choices to maintain their user base. Finally, it can also serve to eliminate confusing or difficult unlocking procedures that currently exist today.
The FCC is seeking comment on this proposal. Specifically, they aim to understand the impact to promotional discounts on devices. Also whether the policy, if enacted, should be retroactive for prior devices or only future purchases. There is also an interest to know potential benefits to smaller providers, new entrants, and resellers if more phones are available on the secondary market.
Some MVNOs Are Already Speaking Up
MobileX founder and CEO Peter Adderton has provided his insight into the proposal. Here is what he had to say.
At MobileX, we regularly hear from consumers who want to sign up for our wireless service but find out during activation that their device is restricted. 85% of these prospective customers tell us they are not able to successfully get a carrier to unlock their device and are blocked from moving forward with the activation on MobileX.
Peter Adderton, MobileX CEO
[…]
We believe in providing our customers with the flexibility and control they deserve. This proposed rule aligns with our commitment to transparency, fairness and consumer-centric service. We urge the FCC to take this important step towards a more open and equitable telecommunications landscape for all Americans.
On the surface, it sounds like MVNOs stand to benefit from this change in a big way. However, it is still important to consider that device unlocking is only one step to freedom from your carrier. Customers might be on a ‘device on us’ offer, but canceling service can mean steep penalties to pay off those devices when promotions are terminated.
In the current state of wireless, financing the full price of a device is the norm. Customers are stuck with the bill if they cancel early. Carriers might also decrease promotional offers on devices knowing the face greater loss as well. When the FCC releases comments, we will know for sure what is at stake.
Do you see a brighter future for consumers if the FCC passes a 60-day unlocking requirement? Let us know your thoughts in the comments below.
