In a recent development, major US telecom carriers T-Mobile and AT&T have voiced opposition to a proposed rule that would require them to unlock mobile phones 60 days after activation. The Federal Communications Commission (FCC) is considering this measure to enhance consumer choice and potentially reduce costs for users.
The carriers argue that locking phones to their networks allows them to offer more affordable devices to consumers. T-Mobile, in particular, claims that implementing this rule could lead to significant reductions in handset subsidies, especially for prepaid customers.
According to T-Mobile's filing with the FCC on October 17, the company estimates that prepaid customers could see subsidies slashed by 40 to 70 percent across various device ranges, from budget-friendly options like the Moto G to premium models such as the iPhone 12.
AT&T echoes similar concerns, suggesting that a uniform unlocking policy could ultimately harm consumers rather than benefit them. Both carriers argue that the current practice of locking phones enables them to provide a wider range of compelling handset offers.
Consumer advocacy groups, however, support the proposed rule, arguing that it would give users more flexibility and potentially lower their overall costs. Critics have pointed out that T-Mobile's current policy of locking phones for up to a year restricts consumers' ability to switch to competing networks.
The carriers warn that if forced to implement the 60-day unlocking rule, they may have to limit their handset offerings to lower-cost and potentially lower-performing devices. This, they claim, would ultimately reduce choices for consumers.
As the debate continues, the FCC will need to weigh the potential benefits to consumers against the concerns raised by the major carriers. The outcome of this proposal could have significant implications for the mobile phone market and consumer options in the United States.