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FCC moves forward with rule to unlock phones within 60 days

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Last month, the Federal Communications Commission (FCC) proposed a new rule requiring wireless carriers to unlock phones within 60 days of activation. The proposed rule has moved a step forward after the agency voted unanimously on Thursday. It will now issue a public notice and solicit public feedback for a draft rule.

FCC is a step closer to standardizing the phone unlock process and time

The current regulations for unlocking a carrier-locked phone in the US aren’t quite transparent. There is no standard process, so carriers have different rules depending on the device and service type—prepaid or postpaid. The FCC’s official ruling says that “a carrier may automatically unlock a device after certain conditions are met, send instructions to customers on how to unlock a device upon request, or complete the unlocking process in-store.”

If this doesn’t already sound all over the place, some wireless carriers charge an early termination fee to unlock phones. The FCC wants to standardize the process with a clear and uniform set of rules. In late June, the Commission’s Chairwoman Jessica Rosenworcel announced a Notice of Proposed Rulemaking (NPRM) that would force all wireless service providers in the US to unlock the phones they sell within 60 days of activation.

The Commission said the proposed rule will be discussed at its July 18 Open Meeting, followed by a vote. The proposal saw no opposition in yesterday’s FCC meeting. Thursday’s unanimous vote means the draft rule now proceeds to the next stage. The FCC will seek public comment on its impact. Among other things, the agency wants to know whether the new rule should apply to existing service contracts or future contracts only.

“New unlocking rules would allow consumers the freedom to take their existing phones and switch from one mobile service provider to another more easily,” the FCC said in an official press release following Thursday’s unanimous vote. “Mobile phone unlocking can increase consumer choice and competition in the mobile service provider marketplace… and reduce customer confusion by applying the same unlocking rules to all service providers.”

The FCC also wants to know how the rule impacts service providers

The proposed new rule for unlocking phones is likely to receive overwhelming support from the public. However, carriers might feel they have been done wrong by the FCC. To that end, the agency is seeking comments on how the rule impacts service providers. It wants to know whether a 60-day unlocking requirement would affect the incentives they offer to their customers. The FCC also wants to know if smaller providers, new entrants, and resellers can benefit from the rule.

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