“Well, I love paying for a phone that can’t be moved from my draconian cell phone network,” said no one ever. But that appears to be the sentiment echoed by US networks AT&T and T-Mobile in response to the Federal Communications Commission (FCC).
The companies oppose the FCC’s proposed rule that all phones must be unlocked no later than 60 days after purchase.
The FCC introduced the proposal in a rare bipartisan move, with all five commissioners (Republicans and Democrats) in favor. The rule could take effect 45 days after its publication in the Federal Register, making the new regulatory action effective later this year or early 2025.
T-Mobile and AT&T have raised objections, as Ars Technica reports. T-Mobile says that removing its rules that prevent prepaid phones from being unlocked for an entire year would result in a “40% to 70% reduction in subsidies for its low-end and high-end devices.” T-Mobile recently increased its unlock period on prepaid phones from 160 to 365 days for its subsidiary Metro by T-Mobile (formerly MetroPCS), which the FCC noted in its initial proposal in July.
AT&T’s official response was similar. “Requiring providers to unlock devices before paying for them would ultimately harm consumers by creating upward pressure on device prices and dissuading them from financing devices on flexible terms,” the representative said. AT&T. “Furthermore, AT&T reiterated its concerns that the FCC may overstep its authority in imposing such rules.”
In my opinion, this is all just legalese: “if the FCC puts these rules into practice, we will sue to get rid of them.” Given the business-friendly nature of many U.S. courts, which have severely hampered the ability of federal agencies to regulate various industries, there is a good chance that carriers will prevail if it comes to this.
As a long-time observer of the US wireless industry and an obligatory customer of the Big Three carriers by proxy, their complaints about rising prices and lack of effect on competition seem hollow to me. Carriers are going to discount phones to try to attract new customers no matter what – they’ve been doing it for decades.
And the competition has already crossed this obstacle. Verizon, typically one of the most restrictive carriers, will unlock payphones 60 days after purchase, giving customers the freedom to purchase cellular service from the company of their choice.
This isn’t exactly an altruistic move, as was agreed upon when Verizon licensed the 700 MHz spectrum. But if Verizon can offer this kind of policy without any obvious downsides for the past five years, AT&T and T-Mobile really have nothing to complain about.
