Carriers fight plan to require unlocking of phones 60 days after activation.
T-Mobile and AT&T say US regulators should drop a plan to require unlocking of phones within 60 days of activation, claiming that locking phones to a carrier’s network makes it possible to provide cheaper handsets to consumers. “If the Commission mandates a uniform unlocking policy, it is consumers—not providers—who stand to lose the most,” T-Mobile alleged in an October 17 filing with the Federal Communications Commission.
The proposed rule has support from consumer advocacy groups who say it will give users more choice and lower their costs. T-Mobile has been criticized for locking phones for up to a year, which makes it impossible to use a phone on a rival’s network. T-Mobile claims that with a 60-day unlocking rule, “consumers risk losing access to the benefits of free or heavily subsidized handsets because the proposal would force providers to reduce the line-up of their most compelling handset offers.”
“prison warden advocates for locking everyone up for their own safety”
The network providers know full well that the market is saturated and that they have to make a better offer if they want to gain market share. The only thing device lock in does is improve their bottom line since they can force you into a shitty contract for longer. It has NO benefit for the consumer whatsoever.
“consumers risk losing access to the benefits of free or heavily subsidized handsets because the proposal would force providers to reduce the line-up of their most compelling handset offers.”
I can’t stress this enough: It’s almost always cheaper to pay full price for a phone, plus a pay-over-time fee through your credit card if needed, and use a prepaid MVNO instead of a major carrier.
So what they really mean is “we risk losing profits on our inflated rates if we can’t trap customers in our overpriced plans and play games with their bills.”
Honestly, it is such an obvious lie, too. Can companies really just lie in their filings to the FTC?
They can, they do and they won’t stop.
They will also lie right to your face
They lie when advertising
Companies lie. They need to lie. If they don’t lie, and actually told the truth…they wouldn’t be in business anymore.
Here in the UK, it generally used to be 1 year, then moved to 18 month, then two year “contracts” (that are essentially paying for the phone). They will of course (if you don’t realise) continue to charge you the increased price after you’ve paid for your phone…
Recently I was looking at upgrading, almost clicked confirm on a price that seemed suspicious. Until I saw “48 month contract”
Nope. Bought the phone outright, interest free credit over 1 year (I’m done with that in 3 more months). A few months later, swapped to one of the “virtual” networks we have here. £8 per month (first 3 £3), unlimited/unlimited/30GB data (I don’t need much), plus roaming to Europe (a frequent destination of mine) included.
100% here it works out a LOT cheaper not to buy through the provider. I have no doubt it’s the same pretty much everywhere too.
If a business wants it, then it isn’t good for the consumer.
Also, the only time a business should be talking to Congress is to explain why they did something, not for new laws. Last time I checked, Congress was supposed to serve the people, not businesses, but I know that has t been true for a long time.
Business is people, money is speech, war is peace.
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so good, in fact, I buy my phones on eBay! they’re unlocked, debloated, and rootable.
I prefer swappa, it is a used market just for phones and I have had good experiences with it.
This is the way.
I have never bought/rented a phone through a carrier. And I’ve always used no bullshit prepaid plans. For exactly the same reasons.
Lies lies lies lies lies, as always
Unlocked phones are what people want. Unlocked phones are good for customers.
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That is a ridiculous take. All you’re talking about really is changing the amount of debt that guy racks up before the end - he can still do the exact same thing with non-contract unlocked phones, just has to pay the $700 with the CC and not sign a contract. It really has nothing to do with locked or unlocked phones. It doesn’t even have anything to do with phones, dude could have done the same thing with anything with decent resale value - I wouldn’t be surprised if a good portion of things for sale “NIB” on ebay aren’t the same situation.
The phone companies were not “hemorrhaging” money over this, they got paid by the bank. Banks issuing credit cards, maybe, but only so much money as they were willing to loan out in the form of a credit limit. That risk is there for them with every CC they issue and has nothing to do with phones.
Carrier locking phones is about keeping consumers prisoner, same as the predatory contracts. I have a cabinet full of old Sprint phones from about a decade on their plans that they would never unlock, well after their contracts were up, because they wanted me to just keep renewing… Please don’t stan the most obvious monopolies of our time…
How about the government subsidizes the cost of the phone for needy customers rather than the reseller.
Are there any other industries where a product or service is subsidized by the reseller? What if, like dental insurance, there were a cell phone insurance company.
I mean, locking phones is stupid to begin with but if it’s for a small segment of people who want $0 / cheap AF phones, maybe there’s other options. I’m on ATT’s site and see a Moto Razr with a retail price of $1k and a payment plan of $6/month for 36 months ($216). The Ts & Cs to get there are lengthy and questionable. The whole industry needs more regulation for the protection of consumers - especially given how critical having a cell phone is in the 21st century.
I believe we already have this to some extent in the States via the SafeLink programs.
At the federal level: https://www.fcc.gov/general/lifeline-program-low-income-consumers
How about the telecoms STFU and let people use loans/credit cards if they need them. Using a phone plan to buy a phone costs dramatically more than just financing one through normal means and US phone plans are insanely expensive. I’m in Spain right now, my phone plan is 5€/mo and it has plenty of data.
If you believe that mobile phone pricing is equal to the price that you get at the operator’s store, then by all means remove the network lock. But it isn’t and you should know that.
Overall, US operator’s have overpriced their services. That is the issue that should have your focus.
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