T-Mobile, AT&T Oppose Unlocking Rule, Claim Locked Phones Are Good For Users

An anonymous reader writes: T-Mobile and AT&T say US regulators should drop a plan to require unlocking of phones within 60 days of activation, claiming that locking phones to a carrier's network makes it possible to provide cheaper handsets to consumers. "If the Commission mandates a uniform unlocking policy, it is consumers -- not providers -- who stand to lose the most," T-Mobile alleged in an October 17 filing with the Federal Communications Commission. The proposed rule has support from consumer advocacy groups who say it will give users more choice and lower their costs.

T-Mobile has been criticized for locking phones for up to a year, which makes it impossible to use a phone on a rival's network. T-Mobile claims that with a 60-day unlocking rule, "consumers risk losing access to the benefits of free or heavily subsidized handsets because the proposal would force providers to reduce the line-up of their most compelling handset offers." If the proposed rule is enacted, "T-Mobile estimates that its prepaid customers, for example, would see subsidies reduced by 40 percent to 70 percent for both its lower and higher-end devices, such as the Moto G, Samsung A15, and iPhone 12," the carrier said. "A handset unlocking mandate would also leave providers little choice but to limit their handset offers to lower cost and often lesser performing handsets." In July, the FCC approved a Notice of Proposed Rulemaking (NPRM) for the unlocking policy in a 5-0 vote.

The FCC is proposing "to require all mobile wireless service providers to unlock handsets 60 days after a consumer's handset is activated with the provider, unless within the 60-day period the service provider determines the handset was purchased through fraud."

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