AT&T and T-Mobile say locked phones are actually good

AT&T and T-Mobile say locked phones are actually good

T-Mobile and AT&T say US regulators should drop a plan to require phones to be unlocked within 60 days of activation, arguing that locking phones to the carrier’s network makes it possible to provide cheaper phones to consumers . “If the Commission imposes a uniform unlocking policy, consumers, not providers, stand to lose the most,” T-Mobile wrote in an Oct. 17 filing with the Federal Communications Commission.

The proposed rule has support from consumer advocacy groups, which say it will give consumers more choice and lower their costs. T-Mobile has been criticized for locking phones for up to a year, making it impossible to use a phone on a competitor’s network. T-Mobile argued that with a 60-day unlock rule, “consumers risk losing access to the benefits of free or heavily subsidized phones, as the proposal would force carriers to reduce the range of their most attractive phone offers.”

If the proposed rule is implemented, “T-Mobile estimates that its prepaid customers, for example, would see a 40% to 70% reduction in subsidies for its lower- and higher-end devices, such as the Moto G, Samsung A15 and iPhone 12,” the operator said. “An unlocked phone mandate would also leave vendors with little choice but to limit their phone offerings to lower-priced and often less efficient phones.”

T-Mobile and other carriers are responding to a call for public comments that began after the FCC approved a Notice of Proposed Rulemaking (NPRM) by a 5-0 vote. The FCC is proposing to “require all mobile wireless service providers to unlock phones 60 days after a user’s phone is activated with the provider, unless within the 60-day period the service provider determines that the phone was purchased fraudulently.”

When the FCC proposed the 60-day unlock rule in July 2024, the agency criticized T-Mobile for locking prepaid phones for a year. The NPRM stated that “T-Mobile recently increased the lock-in period for one of its brands, Metro by T-Mobile, from 180 days to 365 days.”

T-Mobile’s policy states that the carrier will only unlock mobile devices on prepaid plans if “at least 365 days … have passed since the device was activated on the T-Mobile network.”

“You bought your phone, you should be able to take it to any carrier you want,” FCC Chair Jessica Rosenwortzel said when the FCC proposed the rule. “Some providers already operate this way. Others do not. In fact, some have recently increased the time their customers have to wait until they can unlock their device by up to 100 percent.”

T-Mobile’s lock-in policy is more severe

T-Mobile executives, who also argue the FCC lacks authority to enforce the proposed rule, met with FCC officials last week to voice their concerns.

“T-Mobile is passionate about winning customers for life and explained how its phone unlock policies are of great benefit to our customers,” the carrier said in its statement after the meeting. “Our policies enable us to provide access to high-speed mobile broadband access to a national 5G network through cell phones that are free or heavily discounted from the manufacturer’s suggested retail price. T-Mobile’s unlock policies are transparent and there is absolutely no evidence of consumer harm resulting from these policies. T-Mobile’s current unlock policies also help T-Mobile combat phone theft and fraud by sophisticated international criminal organizations.”

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