FCC proposes rule requiring carriers to unlock all cellphones

(NewsNation) — The Federal Communications Commission proposed a new rule Thursday that would require carriers to make cellphones unlockable within 60 days after purchase. 

The move would give cellphone users “freedom to take their existing phones and switch from one mobile wireless service provider to another more easily, as long as the consumer’s phone is compatible with the new provider’s wireless network,” the FCC said in a statement. 

Currently, most cellphones can't be unlocked from a carrier until a contract is up or the phone is paid off, preventing consumers from using the phone on another network.

The agency said some cellphones may contain software that prevents them from being used on different mobile networks even when those networks are technologically compatible.

This software essentially locks the phone to another provider's network, keeping users under the thumb of carriers, the FCC said. 

Mobile phone unlocking would increase consumer choice and competition in the wireless service provider marketplace. 

“Real competition benefits from transparency and consistency,” FCC Chair Jessica Rosenworcel said in a statement. 

 “That is why we are proposing clear, nationwide mobile phone unlocking rules. 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.” 

The new rule would “increase competition by reducing consumer’s switching costs, and reduce customer confusion by applying the same unlocking rules to all mobile service providers,” the agency noted. 

The rule does not address how current users would fare under the rule, but under its “Notice of Proposed Rulemaking,” the agency is seeking comment on the proposal.

The proceeding would also seek comment on whether an unlocking requirement should be applied to existing contracts or future contacts. 

The agency said it's also looking for comments on the impact of a 60-day unlocking requirement in connection with carriers' incentives to offer discounted phones for postpaid and prepaid service plans and whether the requirement would benefit smaller providers, new entrants, and resellers.