FCC Told to Rethink Phone Unlocking

Verizon has asked to be let out of legal commitments to unlock phones within 60 days, allowing anyone with a new Verizon phone to take it to another carrier.

The rules currently say that if somebody buys a phone that's locked to a particular network provider, they have the right to get it unlocked after six months, However, Verizon has made two legal commitments to follow a 60-day limit instead.

One commitment was made as part of the deal when it bought the rights to broadcast mobile data at a particular frequency (the 700 MHz spectrum). The other was as a condition of getting regulatory approval to buy out a smaller rival, TracFone.

Last year the Federal Communications Commission (FCC) proposed tightening the rules so that all carriers would have to follow the 60-day limit. That process was not completed before the change of government.

Regulations Relaxed?

The FCC now has new leadership which has expressly stated a desire to remove more regulation. It's already clear that means an end to any prospects of the rule change to a 60-day period for all carriers and its possible it may change or remove the existing six-month limit.

Verizon wants the FCC to go a step further and release it from its legal commitments, instead falling back to the same six-month period as all carriers. It wants a waiver on the obligation until the FCC reviews the industry-wide rules.

According to Verizon, having special rules just for one carrier distorts the marketplace. It also says it makes it easier for "bad actors" to use unlocked phones for fraudulent purposes. (Source: arstechnica.com)

Competition Questioned

Verizon goes on to warn that a 60-day unlocking period makes it easier for people to buy a cheap handset that's subsidized by a US carrier, then sell it at a profit to somebody in a country that doesn't have subsidies.

Critics counter that longer unlocking periods harm competition because it makes it harder to switch carriers. That means there's less incentive for carriers to improve service and coverage. (Source: androidauthority.com)

What's Your Opinion?

Should the FCC follow Verizon's suggestion? Would you prefer a switch to a 60-day limit for all carriers? Or should there be no regulation on locking phones to a particular carrier?