FCC urged to address carriers’ restrictive policies on smartphone unlocking

The National Telecommunications and Information Administration (NTIA) urged the Federal Communications Commission (FCC) to adopt stricter rules on smartphone unlocking. In an October 31 meeting, the officials advocated for expanded consumer protections to address the restrictive policies currently upheld by wireless carriers.

NTIA’s call highlights the increasing consumer demand for flexibility in choosing and switching providers without being restricted by devices.

NTIA tells FCC that carriers’ restrictive policies hinder consumer choice

The NTIA’s recent push is a response to the FCC’s ongoing discussions on handset unlocking, a practice that could potentially loosen carriers’ restrictive policies. The agency called for faster, more consumer-friendly unlocking policies. They noted that some carriers implement delays that hinder consumer choice, adding that NTIA’s recommendations aim to mitigate these barriers.

The US agency commended the FCC’s proposal for improving the situation but called for more comprehensive measures. The administration believes a universal policy would ensure that carriers unlock phones automatically when eligible, minimizing consumer burden. Carriers’ restrictive policies, NTIA argued, limit consumer freedom and can deter users from switching providers, ultimately affecting competition.

The NTIA’s stance stems from years of advocacy. Over a decade ago, the agency requested similar changes, emphasizing that unlocking would empower consumers and encourage competition. Today, smartphone manufacturers typically make devices compatible with multiple networks, making it feasible for users to switch carriers without changing devices. However, carriers’ restrictive policies, including lengthy unlocking timelines, can prevent consumers from taking advantage of this compatibility.

The agency pointed out that competitive barriers arise when consumers lack options to freely switch carriers. Automatic unlocking, they contend, would reduce these challenges. It also proposed that former customers and secondhand device owners should have access to unlocking services, addressing another gap in consumer rights.

Carriers’ policies and consumer costs

Carriers’ restrictive policies, according to NTIA, contribute to increased costs for consumers. While some carriers do support unlocking, delays and distinctions between prepaid and postpaid plans can make the process cumbersome. The agency further emphasized the need for a uniform policy that treats all device owners fairly, helping low-income consumers access competitive wireless plans without buying new tech devices.