The Federal Communications Commission (FCC) wants to pass a law that would make it mandatory for all carriers to unlock phones within 60 days of activation. T-Mobile and AT&T have vehemently opposed the proposed rule, arguing it would impact their ability to offer discounts and fight fraud. They have also accused the FCC of regulatory overreach.
While discounts and freebies are great, the gift that consumers have been waiting for is a reasonable, uniform unlocking policy across the industry. A 60-day unlocking period would make it easier for customers to switch providers. This could boost migration to MVNOs, which rely on AT&T, T-Mobile, and Verizon to provide service, and are often cheaper compared to traditional carriers.
Peter Adderton, founder and CEO of MVNO MobileX which users Verizon‘s towers, says that carriers are only using fraud and device discounts as an excuse to keep people beholden to their networks. Adderton also founded Boost Mobile in 2000.
It’s an antiquated practice that was brought about by carriers coming up with ways to be able to keep customers on their network longer, to reduce churn and give them more revenue and a much better valuation on their subscribers.
Peter Adderton, founder and CEO of MVNO MobileX, December 2024
Adderton has revealed that people often tell him that locked devices prevent them from migrating to MobileX, and in some cases, devices remain locked to carriers even after they have been paid off.
Adderton’s apprehension may be unwarranted, as even though some Republicans have opposed the unlocking proposal, Brendan Carr, who has been nominated to lead the FCC, is open to it.
Another telecom veteran who wants the unlocking requirement enforced is Whitey Bluestein. He believes that technology has progressed to a point that locking phones is no longer necessary and points to Verizon as an example of how carriers can survive just fine after a 60-day unlocking policy. Verizon already has a 60-day unlocking policy, which was imposed on it after some transactions in 2021.
Phone locking rules protect Mobile Operators from losing customers to other Service Providers who offer better pricing, better service, better care, better coverage, better promotions, better commercials or celebrity spokespeople, for any reason whatsoever. Mobile Operators can assure payment on handset contracts in the same way the financial industry recovers when customers don’t fulfil their contracts rather than denying critical communications services.
Whitey Bluestein, Board Member and Board Advisor at Bluestein & Associates, July 2024
The unlocking item is on the back burner for now and it could be a while before a decision is made.