Key Points
- FCC seeks to force carriers to unlock phones within two months after they are first activated.
- The proposal, among other things, is intended to reduce consumers’ cost of switching and confusion.
- July 18th is the day when discussions on this issue will take place as well as voting.
- Promoting competition and smaller carriers would benefit from such a plan.
A new Federal Communications Commission (FCC) proposal suggests that all mobile carriers should be compelled to unlock all smartphones within 60 days of activation. According to FCC Chairwoman Jessica Rosenworcel’s announcement, the purpose of this measure is to help people move between providers more easily; it also lowers costs and reduces confusion.
Easing the Pain of Phone Unlocking
Unlocking is not an easy task for many people using smartphones especially if they want to either sell, donate, or change their mobile service provider. The usual procedure often involves contacting carriers or sellers, which can be annoying and time-consuming.
In order to simplify this process and ensure customers have the freedom to choose any carrier they prefer, the agency has decided to make its own unlocking policy nationwide.
Boosting Competition and Transparency
The proposed rules would allow consumers to switch their existing phones including those that are currently locked into any compatible network thus promoting more competition amongst wireless providers.
This move would help reduce the costs associated with changing carriers while eliminating current barriers that restrict consumer choice. “Transparency and certainty lie at the heart of robust competition,” said Rosenworcel in support of clear national rules regarding mobile phone unlocking.
Key Questions and Considerations
Some issues that need addressing before this proposal can be voted on during an open meeting by the FCC on July 18 include:
Applicability: Does this requirement apply only to contracts signed after it becomes effective?
Incentives and Discounts: How would carriers’ discounting and incentives for postpaid and prepaid plans be affected by this decision?
Impact on Smaller Carriers: Would making unlocked phones more available through independent sales be of benefit to smaller carriers or resellers?
These are the questions that will help the FCC shape its draft proposal and handle any arising issues.
Implications for Consumers and the Market
The new regulations, if enacted, would further empower consumers in terms of selecting their wireless service providers thereby increasing their overall satisfaction levels as well as forcing down costs. This proposal is in line with the FCC’s objective of having a competitive market that provides quality services.
