FCC chair Jessica Rosenworcel said when pitching the new rule that obligating operators to unlock phones within 60 days of activation would make it easier for customers to take their phone to another provider, thereby bolstering competition. At the moment, different carriers have different unlocking requirements, but the new law would establish a uniform policy for all carriers.
In a new FCC filing, T-Mobile reveals that execs from the company met with FCC Commissioner Geoffrey Starksand and wireless policy advisor Flynn Rico-Johnson on September 10 regarding the agency’s proposal to enforce a 60-day unlocking requirement on all wireless service providers.
T-Mobile argues that the current unlocking rules that require users to stay with a carrier for a certain time allow carriers to offer new devices at discounted rates. While the company understands that the FCC means well, it fears that the proposed rules would impact its ability to let consumers pay for devices in instalments, thereby undermining competition and restricting consumer choice.
T-Mobile offers some devices at no upfront cost but FCC’s new rules could affect their ability to offer such lavish discounts. | Image Credit – T-Mobile
T-Mobile and other carriers keep customer devices locked to their networks until contractual requirements have been fulfilled or some or all of the device cost has been paid off. This allows them to offer new devices at discounted prices, which otherwise would be out of reach for many buyers, especially low-income consumers.
T-Mobile has also expressed doubt over whether the FCC has sufficient legal authority to impose a new unlocking rule, especially in light of the fact that it may have profound economic consequences. That’s why, T-Mobile believes that Congress will have to step in authorize this change.
While T-Mobile surely has a point when it says deals offered by carriers make phones cheaper upfront, in the long run, you may end up spending more than what you budgeted. That’s because you are usually required to be on a pricey plan to be eligible for a discount. Discounts are applied as monthly bill credits but you must not pay off your device early if you don’t want to stop getting credits.
Also, T-Mobile has more relaxed rules for Mint Mobile customers, which indicates that having a shorter unlocking policy wouldn’t be as big of a deal as it’s making it out to be.
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