### Carriers Push Back Against FCC Proposal to Unlock Phones 60 Days Post-Activation
In a development that has ignited considerable discussions, the Federal Communications Commission (FCC) is contemplating a regulation that would compel mobile carriers to unlock phones 60 days following activation. This suggestion has gained traction from consumer advocacy organizations but meets strong resistance from prominent carriers such as T-Mobile and AT&T. The carriers contend that such a regulation would be detrimental to consumers by limiting access to subsidized devices, while consumer groups assert it would promote competition and decrease costs for users.
#### The FCC’s Suggested Regulation
The FCC’s suggested regulation, unveiled in July 2024, would require that all mobile wireless service providers unlock devices 60 days post-activation, except when the phone was acquired through deceitful means. This regulation aims to enhance consumer autonomy in switching carriers and utilizing their devices across different networks. The FCC’s Notice of Proposed Rulemaking (NPRM) received unanimous approval in a 5–0 vote, demonstrating robust regulatory interest in tackling the locked phone concern.
FCC Chairwoman Jessica Rosenworcel has openly expressed her endorsement of the regulation, proclaiming, “You purchased your phone, you ought to be able to take it to any provider you choose.” She criticized carriers like T-Mobile for locking prepaid devices for up to a year, complicating consumers’ ability to transition networks. “Some providers already function this way. Others do not,” Rosenworcel remarked, underscoring the necessity for consistency in unlocking practices.
#### Opposition from Carriers
T-Mobile and AT&T have lodged complaints with the FCC, asserting that the 60-day unlocking mandate would negatively impact consumers by increasing the cost of handsets. In a filing dated October 17, T-Mobile argued that locking devices to a carrier’s network enables them to provide more affordable or substantially subsidized phones. The carrier cautioned that if the regulation is implemented, prepaid clients could experience subsidy reductions ranging from 40% to 70%, especially for sought-after models like the Moto G, Samsung A15, and iPhone 12.
T-Mobile further contended that the regulation would compel them to limit their device selection to more affordable, less advanced options. “Consumers face the risk of losing access to the advantages of free or significantly subsidized phones because the proposal would force providers to shrink the lineup of their most attractive handset offerings,” the company stated.
AT&T expressed similar apprehensions in a filing on October 7, arguing that the regulation would “render handsets less affordable for consumers, particularly those from lower-income households.” The carrier also highlighted concerns regarding fraud, asserting that a shorter unlocking timeline could worsen issues such as handset arbitrage and trafficking.
#### Existing Unlocking Policies
The existing unlocking policies of key carriers differ markedly, with T-Mobile imposing the most stringent restrictions. T-Mobile locks prepaid devices for an entire year, a policy recently extended from 180 days for its Metro by T-Mobile brand. Conversely, postpaid users may unlock their phones after 40 days, provided the device is fully paid for.
AT&T allows postpaid customers to unlock phones after 60 days, whereas prepaid users must wait for six months. Verizon, constrained by existing unlocking regulations due to spectrum license conditions, automatically unlocks phones after 60 days for both prepaid and postpaid customers. Among the three primary carriers, Verizon’s policy most closely aligns with the FCC’s proposed regulation.
#### Backing for the Regulation from Consumer Advocacy Groups
Consumer advocacy organizations, such as Public Knowledge, Consumer Reports, and the National Consumers League, have expressed strong backing for the FCC’s proposal. In an October 18 filing, these groups argued that locked phones establish unnecessary obstacles for consumers, hindering their ability to change providers and diminishing market competition.
“Handset locking practices restrict consumer freedom and weaken competition by establishing an artificial technological barrier to switching providers,” the organizations stated. They also pointed to Verizon’s unlocking policy as a benchmark for the industry, urging the FCC to mandate automatic unlocking after 60 days, regardless of whether the phone is paid in full.
The organizations spotlighted the advantages of unlocked phones for the secondary market, where used devices can be traded at more affordable prices. This, they assert, would particularly assist low-income consumers who might struggle to purchase new handsets.
#### The Effects on Phone Subsidies
A primary concern articulated by carriers involves the possible effects of the 60-day unlocking regulation on phone subsidies. Carriers frequently lock phones to their networks to recuperate the costs associated with providing devices at a lower price or for free. Should the FCC enforce a shorter unlocking duration, carriers might be disinclined to provide such subsidies, particularly for prepaid customers.
The FCC has recognized this issue, soliciting public feedback on how the regulation could influence carriers’ motivations to offer discounted handsets. While the FCC acknowledges the significance of subsidies, especially for low-income consumers, it concurrently notes that locked phones could disadvantage these same individuals by complicating their ability to switch providers or acquire new devices.
