T-Mobile and AT&T are expressing strong opposition to a new proposal from the Federal Communications Commission (FCC) that would mandate mobile carriers to unlock phones within 60 days of activation. Both companies argue that locking phones enables them to provide cheaper handsets by subsidizing costs. T-Mobile asserted in an October 17 filing that enforcing such a rule could actually disadvantage consumers by reducing the availability of free or heavily discounted phones.
T-Mobile claims that if the FCC moves forward with this uniform unlocking policy, consumers could face significant losses. The company estimates that subsidies for prepaid users could drop by as much as 40 to 70 percent, limiting access to affordable devices like the Moto G, Samsung A15, and iPhone 12.
Consumer Advocacy Groups Support the Rule
In contrast, several consumer advocacy organizations back the FCC’s initiative, stating that it would enhance consumer choice and lower costs. They have criticized T-Mobile’s long locking periods, which can extend up to a year, effectively trapping customers within a single network.
The FCC initiated a public comment period following a unanimous 5-0 vote to consider the proposed rule. This would require all wireless carriers to unlock devices within 60 days of activation, except in cases of suspected fraud. The NPRM specifically highlighted T-Mobile’s increase of its locking period for the Metro by T-Mobile brand from 180 days to a full year.
Currently, T-Mobile’s policy stipulates that phones on prepaid plans can only be unlocked after 365 days. The carrier argues that the FCC’s proposal could drastically hinder its capacity to provide affordable options to low-income customers. They maintain that such a rule would force them to limit their device selections to lower-cost, lower-performing models.
Carrier Responses to FCC’s Proposed Rule
Recently, T-Mobile executives met with FCC officials to express their concerns, claiming the commission lacks the authority to enforce such a rule. They emphasized the transparency of their unlocking policies, which they argue enable high-speed mobile broadband access through discounted devices. T-Mobile also pointed out that their policies are designed to prevent phone theft and combat fraud.
AT&T has echoed these sentiments, warning that requiring carriers to unlock phones before they are fully paid for could raise handset prices, particularly impacting low-income consumers. In a filing on October 7, AT&T suggested that any new unlocking regulations should allow at least 180 days for carriers to detect fraud before unlocking a device and recommend a 24-month period for implementing any changes.
Meanwhile, Verizon has shown more support for the proposed rule, as they are already required to unlock phones after 60 days due to conditions tied to their spectrum licenses. They advocate for a standardized unlocking policy but also suggest maintaining a 180-day locking period for prepaid devices to safeguard against fraud.
Consumer Advocacy Groups Call for Automatic Unlocking
Numerous consumer advocacy organizations, including Public Knowledge and Consumer Reports, submitted comments on October 18 in favor of strict unlocking rules. They argue that locking phones creates unnecessary restrictions that limit consumer freedom and hinder the ability to switch providers. They propose that the FCC require automatic unlocking after 60 days, without requiring additional consumer action.
These groups emphasize that removing locking restrictions could foster a robust secondary market for used phones, providing more affordable options for consumers. They urge the FCC to establish a uniform unlocking rule applicable to all carriers, suggesting it would promote competition and enhance service quality.
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