Yesterday, we told you that the FCC is considering issuing new rules that would require carriers and wireless providers to unlock newly purchased phones within 60 days of activation. FCC Chair Jessica Rosenworcel noted that the FCC and Department of Justice have previously imposed unlocking requirements on wireless companies as a necessary condition for mergers to be approved. But Chair Rosenworcel noted that restrictions on consumers’ ability to unlock their phones remain despite this. The FCC chair had something to say about T-Mobile after noting that some wireless providers are doubling the time it takes consumers to unlock their phones. Chair Rosenworcel was speaking about T-Mobile’s prepaid Metro division. After all, the FCC’s Notice of Proposed Rulemaking (NPRM) included the FCC’s proposed 60-day unlocking rule, but noted that T-Mobile’s Metro had recently increased the number of days consumers must wait before unlocking their phones from 180 to 365 days.
“You can buy a phone and take it to the provider of your choice. Some providers already operate this way, but others don’t. In fact, some recently increased the amount of time customers have to wait to unlock their devices by as much as 100 percent.” – Jessica Rosenworcel, FCC Chairman
Metro’s unlocking rules satisfy an agreement T-Mobile and the FCC made to get the FCC to approve T-Mobile’s acquisition of Sprint. That agreement required T-Mobile prepaid subscribers to be able to unlock their phones within a year of activation. Metro’s extension from 180 days to 365 days simply brings the T-Mobile division in line with T-Mobile’s own prepaid unlocking policy.
While Rosenworcel didn’t say so specifically, her response seemed to indicate that T-Mobile would have been better off going along with it by shortening Metro’s unlock requirement for prepaid units from 365 days to its previous 180 days.
Metro by T-Mobile has more than doubled the number of days customers must wait to unlock their new phones. Image courtesy of T-Mobile
It’s worth pointing out that T-Mobile postpaid subscribers are allowed to unlock their phones if they’ve been active for at least 40 days, but this only applies to phones that have been paid off with an Equipment Installment Plan (EIP) or lease. Verizon is bound by a deal it made with the FCC when it bought some of its spectrum licenses 15 years ago to automatically unlock phones after 60 days for both postpaid and prepaid customers.
“AT&T has a waiting period and 60-day active service rule before unlocking a postpaid device, and requires that the device not be active on another AT&T account, have no outstanding account balances, or have not been reported lost, stolen, or involved in fraud. For prepaid devices, AT&T requires that the device be active for at least six months.” -FCC NPRM
The FCC is seeking public comment on the 60-day unlocking period. When locked, a consumer’s phone cannot be transferred to another wireless carrier, effectively preventing consumers from leaving their current provider. When unlocked, the phone can be taken to any wireless carrier the consumer wants to switch to.