WASHINGTON, D.C. — In a move that could have potentially significant consequences for both consumers and cell phone service providers, FCC Chairwoman Jessica Rosenworcel has brought forth a proposal that would require mobile providers to unlock customers’ mobile phones within 60 days of activation.
The new FCC-enforced unlocking rules would, in Rosenworcel’s view, allow consumers “the freedom to take their existing phones and switch from one mobile wireless service provider to another more easily,” as long as the consumer’s phone is compatible with the new provider’s wireless network.
As such, the Commission at its July Open Meeting will vote on the NPRM, which expands unlocking requirements by setting “a clear and uniform set of requirements for all mobile service providers.”
Commenting on her proposal, Rosenworcel said, “Real competition benefits from transparency and consistency. That is why we are proposing clear, nationwide mobile phone unlocking rules. When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice.”
Mobile phone unlocking, in her view, “can increase consumer choice and competition in the wireless service provider marketplace.” She also believes that updated unlocking rules would give consumers more flexibility when switching service providers, increase competition by reducing consumer’s switching costs, and reduce customer confusion by applying the same unlocking rules to all mobile service providers.
Specifically, the Notice of Proposed Rulemaking would seek comment on requiring all mobile wireless service providers to unlock mobile phones 60 days after the device is activated with the provider. The proceeding would also seek comment on whether an unlocking requirement should be applied to existing contracts or future contacts.
Rosenworcel’s NPRM also seeks comment on the impact of a 60-day unlocking requirement in connection with service providers’ incentives to offer discounted phones for postpaid and prepaid service plans, as well as whether an unlocking requirement would benefit smaller providers, new entrants, and resellers by increasing the number of phones available on the secondary market.
— With editing by Adam R Jacobson, in Palm Beach, Fla.
