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FCC rule would make carriers unlock all phones after 60 days

techcrunch.com

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Re: FCC rule would make carriers unlock all phones after 60 days

#2
Without provisions for equipment installment plans, this would likely end financing of phones by carriers (potentially pushing consumers to higher cost mechanisms, like credit cards or other traditional credit instruments). When locked, the phone is the collateral.

Free and clear phones should be unlocked immediately.

Re: FCC rule would make carriers unlock all phones after 60 days

#3
Yes please. Some carrier unlocking rules are ridiculous, even if you pay off the phone. If you pay off the phone it should be unlocked immediately. Financing your phone raises some questions about unlocking, but I guess the carriers can decided to not allow you to finance your phone if you just stop paying on them.

Re: FCC rule would make carriers unlock all phones after 60 days

#4

Without provisions for equipment installment plans, this would likely end financing of phones by carriers (potentially pushing consumers to higher cost mechanisms, like credit cards or other traditional credit instruments). When locked, the phone is the collateral. Free and clear phones should be unlocked immediately.

Markets exist where SIM locking has been prohibited for a long time (Wikipedia says Canada, Chile, China, Israel, and Singapore at least). Financing still exists in these countries.

The phone is absolutely not "collateral". The carrier does not take it back if you default (even if they could, they wouldn't be able to get anything of value for it). Unlocking is just an inconvenience that prevents enough people from churning that it lowers the risk of financing.

Re: FCC rule would make carriers unlock all phones after 60 days

#5
This only helps the credit card companies. There definitely should be an exception to force unlocking if you are on a payment plan.

And it will make it harder for the poor and those with bad credit to get a phone.

T-Mobile for instance will let you finance a phone regardless of credit once you have been a customer for a year.

I believe that some of the MVNOs will even let you get up to a midrange phone like an older iPhone as long as you stay with them for a few months. They would only do that if it’s locked.

Re: FCC rule would make carriers unlock all phones after 60 days

#6
post #4

Without provisions for equipment installment plans, this would likely end financing of phones by carriers (potentially pushing consumers to higher cost mechanisms, like credit cards or other traditional credit instruments). When locked, the phone is the collateral. Free and clear phones should be unlocked immediately.

Markets exist where SIM locking has been prohibited for a long time (Wikipedia says Canada, Chile, China, Israel, and Singapore at least). Financing still exists in these countries. The phone is absolutely not "collateral". The carrier does not take it back if you default (even if they could, they wouldn't be able to get anything of value for it). Unlocking is just an inconvenience that prevents enough people from ch…

Yes, because in Canada at least, if you terminate your contract, you have to pay out the phone. That's how it's done. Really, it's not a complicated solution.

Re: FCC rule would make carriers unlock all phones after 60 days

#7
post #4

Without provisions for equipment installment plans, this would likely end financing of phones by carriers (potentially pushing consumers to higher cost mechanisms, like credit cards or other traditional credit instruments). When locked, the phone is the collateral. Free and clear phones should be unlocked immediately.

Markets exist where SIM locking has been prohibited for a long time (Wikipedia says Canada, Chile, China, Israel, and Singapore at least). Financing still exists in these countries. The phone is absolutely not "collateral". The carrier does not take it back if you default (even if they could, they wouldn't be able to get anything of value for it). Unlocking is just an inconvenience that prevents enough people from ch…

Yes. In Canada, the phones are not locked, but if you terminate your contract before the term (max 2 years) you have to pay the remaining cost.

Re: FCC rule would make carriers unlock all phones after 60 days

#8
post #4

Without provisions for equipment installment plans, this would likely end financing of phones by carriers (potentially pushing consumers to higher cost mechanisms, like credit cards or other traditional credit instruments). When locked, the phone is the collateral. Free and clear phones should be unlocked immediately.

Markets exist where SIM locking has been prohibited for a long time (Wikipedia says Canada, Chile, China, Israel, and Singapore at least). Financing still exists in these countries. The phone is absolutely not "collateral". The carrier does not take it back if you default (even if they could, they wouldn't be able to get anything of value for it). Unlocking is just an inconvenience that prevents enough people from ch…

They'd still make you pay off the full amount before you could close off your account. Pretty standard in the US. Locking is just an evil way to add more friction.

Re: FCC rule would make carriers unlock all phones after 60 days

#9

Without provisions for equipment installment plans, this would likely end financing of phones by carriers (potentially pushing consumers to higher cost mechanisms, like credit cards or other traditional credit instruments). When locked, the phone is the collateral. Free and clear phones should be unlocked immediately.

Unlocking phones does not free the individual of contractual obligations...

Yes, there's room for abuse in the system.. and perhaps prepaid phones won't be as well subsidized.. but people getting contracts typically take a credit hit or require a hefty security deposit to offset the risk.

Re: FCC rule would make carriers unlock all phones after 60 days

#10
Why 60 days? Why not zero days? If you're going to take away their extrajudicial means of contract enforcement, what's the point of this residue? The only purpose for leaving it would be to confuse the customer about whether they can unlock, and to allow companies to make the process burdensome and confusing.

The reason carriers fight to preserve this isn't for enforcement of the contract at all, it's because of the other revenue streams from unwanted intrusion by the carrier into the use of your phone. Carriers can sue for the cost of the phone. And the FCC, by allowing this 60 day provision, would be making a conscious attempt to protect carrier data harvesting and customer capture.

I get allowing carriers to lock for the length of a contract; I get not allowing carriers to lock at all. This, however, is an attempt to pander to people who think locking is wrong while still preserving the benefits that carriers get from locking. These benefits will now be delivered by jerking customers through a Kafkaesque dance of intentionally confusing bureaucracy. Unlocking becomes cancelling your gym membership or your subscription to the Economist.

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