As reported by C/NET: The days of carriers locking down devices to keep customers in place are officially dead.
Starting now, all US carriers must comply
with requests from postpaid and prepaid customers to unlock their
devices, as long as certain parameters are met. The industry group CTIA had committed last year to have all wireless carriers adhering to the regulation by February 11, 2015.
The move follows from President Obama last year signing into law the "Unlocking Consumer Choice and Wireless Competition Act," which overruled a controversial 2012 decision by the Library of Congress.
The debate over phone unlocking has come a long way in just a few
short years. Unlocking a phone allows owners to put the device on
whatever carrier network they choose. For years, carriers have locked
down devices, allowing them only to connect to their own networks. The
move was designed to keep customers close and not see them stray to
other carriers.
"We are pleased the FCC acknowledged the
participating wireless carriers met the deadlines to unlock their
customers' devices per the Consumer Code for Wireless Service," said
Scott Bergmann, the CTIA's vice president for regulatory affairs, in a
statement. "We also remind consumers that an unlocked device does not
necessarily mean an interoperable one since different carriers use
different technologies and spectrum bands."
For customers, the
inability to unlock handsets had been a nuisance. Many consumers,
seeking better network coverage or data plan pricing, have wanted to be
able to move to a different network without having to buy a new device.
An unlocked handset would allow that interchange between, say, AT&T
and T-Mobile networks. Locked devices force customers to stick with
their carrier networks and if they decide to switch, to buy a new device
on the other carrier.
In 2013, the issue of unlocking hitting a
tipping point when the Library of Congress held that the US Digital
Millennium Copyright Act (DMCA) banned American consumers from unlocking their devices without the consent of their carriers. Critics took issue with the ruling, which actually came down in 2012
but went into effect in 2013. Then in August 2014 came the "Unlocking
Consumer Choice and Wireless Competition Act," which effectively made
unlocking legal again.
On the postpaid side, carriers must unlock
devices after a customer in good standing has fulfilled "postpaid
service contract, device financing plan, or payment of applicable early
termination fee." In other words, those subscribers who get smartphones
for less by paying a subsidy at the beginning and paying in full over
the life of a contract, must have satisfied that payment covenant before
they can be allowed to unlock their device.
On the prepaid
side, things are bit simpler: carriers must, upon request, unlock a
handset "no later than one year after initial activation."
All
unlocking, regardless of the type of customer, must be completed within
two days of a request, and carriers are now required to inform consumers
of their policies.
"Carriers that lock devices will clearly
notify customers that their devices are eligible for unlocking at the
time when their devices are eligible for unlocking or automatically
unlock devices remotely when devices are eligible for unlocking, without
additional fee," the code reads. "Carriers reserve the right to charge
non-customers/non-former-customers with a reasonable fee for unlocking
requests. Notice to prepaid customers may occur at point of sale, at the
time of eligibility, or through a clear and concise statement of policy
on the carrier's website."
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