Long-term carrier lock-in could soon be a thing of the past in America after the FCC proposed requiring telcos to unlock cellphones from their networks 60 days after activation.
FCC boss Jessica Rosenworcel put out that proposal on Thursday, saying it would encourage competition between carriers. If subscribers could simply walk off to another telco with their handsets after two months of use, networks would have to do a lot more competing, the FCC reasons.
“When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice,” Rosenworcel said.
Carrier-locked devices contain software mechanisms that prevent them from being used on other providers’ networks. The practice has long been criticized for being anti-consumer.
I had no idea this was even still a thing I don’t understand how it’s legal
It is illegal for all carriers using gsm-based communication. So that’s everyone at the moment and that means that you can’t have phones locked when they’re purchased. They can lock the phones they’re under contracts if you finance the phone. Then they don’t have to remove that until the phone is completely paid off. What’s been going on over the last 4 or 5 years is the company will give you a subsidy for the phone even if you pay it off in full and then claim that that subsidy is part of a financing deal. So they’ll put a fake price and be like the phone cost $1,200 but we’ll sell it to you for $800. Then when you pay off the 800 right when you walk out the door you’re still getting a subsidy that directly pays for that extra $400 they gave you off that wasn’t part of the actual price. If you ever go to change service they automatically use the rest of that monthly subsidy immediately to pay off the phone keep that on the phone since the cost is the same as the subsidy for each month you have the phone untill it’s paid off.
If you have Verizon they have been blocking phones even if they’re not allowed to do that claiming that any phone not purchased through them or the model number that they sell in the store is not compatible with their Network and needs to be evaluated for security. Then they make it a pain in the ass to get your phone approved to be on their Network and it can take up to 90 days even if it’s the same phone just the “unlocked” version with a different model number. This was less of an issue when the FCC rules for GSM based carriers were being enforced, but under Trump and Bush they were not enforcing the rules. And until LTE we had two carriers that were not using GSM based technology so they were not covered by the rules.
It’s not; literally no carrier forces you into a shitty contract anymore.
Not like they used to, mostly. They just replaced “contract” with “equipment payment plan”. Because $50/mo for 24 months is easier for a consumer to swallow than a lump payment of $1200, especially when the carrier is giving you a $10 or $20 (or more) “discount” on the phone.
But as long as the EPP is active, the phone is locked to that carrier. And I think that’s fair. No different than the bank holding the title while you finance a car.
The thing is that the plans that have these equipment deals are significantly more expensive than others. Namely big name plans like TMo or Verizon, compared to MVNO plans like Mint or Visible. So you end up paying more for the plan because you get “a deal” on your phone (but still end up ultimately paying more).
It is very much still a thing and the contracts still exist in some form, specifically phone financing and locking. If you finance a cellphone from Tmobile, it will be locked to Tmobile until you’ve paid for the phone in full, which is usually over two years of payments. This is why carriers offer deals on phones purchased through them, and have those upgrade-every-year type plans. The contract has just switched from the phone service, to the phone itself. This is also why if you walk into any carrier’s store, they’ll try and convince you to trade in your perfectly good paid-for device for the next years model with a decent trade in value, but only if you finance the new phone.
Boost mobile doesn’t even do financing, but they require you be with them for a year before they’ll unlock your phone. I refuse to go back to them after buying an LG Stylo, and then when I wanted to switch 6 months later they refused to release the phone. I ended up having to buy a whole new phone when I didn’t have the money to do so.