Long-term carrier lock-in could soon be a thing of the past in America after the FCC proposed requiring telcos to unlock cellphones from their networks 60 days after activation.
FCC boss Jessica Rosenworcel put out that proposal on Thursday, saying it would encourage competition between carriers. If subscribers could simply walk off to another telco with their handsets after two months of use, networks would have to do a lot more competing, the FCC reasons.
“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,” Rosenworcel said.
Carrier-locked devices contain software mechanisms that prevent them from being used on other providers’ networks. The practice has long been criticized for being anti-consumer.
It is illegal for all carriers using gsm-based communication. So that’s everyone at the moment and that means that you can’t have phones locked when they’re purchased. They can lock the phones they’re under contracts if you finance the phone. Then they don’t have to remove that until the phone is completely paid off. What’s been going on over the last 4 or 5 years is the company will give you a subsidy for the phone even if you pay it off in full and then claim that that subsidy is part of a financing deal. So they’ll put a fake price and be like the phone cost $1,200 but we’ll sell it to you for $800. Then when you pay off the 800 right when you walk out the door you’re still getting a subsidy that directly pays for that extra $400 they gave you off that wasn’t part of the actual price. If you ever go to change service they automatically use the rest of that monthly subsidy immediately to pay off the phone keep that on the phone since the cost is the same as the subsidy for each month you have the phone untill it’s paid off.
If you have Verizon they have been blocking phones even if they’re not allowed to do that claiming that any phone not purchased through them or the model number that they sell in the store is not compatible with their Network and needs to be evaluated for security. Then they make it a pain in the ass to get your phone approved to be on their Network and it can take up to 90 days even if it’s the same phone just the “unlocked” version with a different model number. This was less of an issue when the FCC rules for GSM based carriers were being enforced, but under Trump and Bush they were not enforcing the rules. And until LTE we had two carriers that were not using GSM based technology so they were not covered by the rules.