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FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

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Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#2
Can't the operators just sell unlocked phones with monthly installments instead? The installment plan will then include free service for some amount of data/minutes. If the user chooses to switch operator, they are still bound by the installment contract to pay off the phone.

Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#3
post #2

Can't the operators just sell unlocked phones with monthly installments instead? The installment plan will then include free service for some amount of data/minutes. If the user chooses to switch operator, they are still bound by the installment contract to pay off the phone.

Yes, but let’s just say you got a 1200 device and only made the first two payments… jump to another carrier and abandon the one with the finance plan. What’s the recourse for the carrier?

Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#4
post #3
post #2

Can't the operators just sell unlocked phones with monthly installments instead? The installment plan will then include free service for some amount of data/minutes. If the user chooses to switch operator, they are still bound by the installment contract to pay off the phone.

Yes, but let’s just say you got a 1200 device and only made the first two payments… jump to another carrier and abandon the one with the finance plan. What’s the recourse for the carrier?

Small claims court? Inability for the debtor to get a loan for even another phone (or a used car or whatever) for a period of time?

It's messy and expensive, but perhaps it should be messy and expensive.

Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#5
post #3
post #2

Can't the operators just sell unlocked phones with monthly installments instead? The installment plan will then include free service for some amount of data/minutes. If the user chooses to switch operator, they are still bound by the installment contract to pay off the phone.

Yes, but let’s just say you got a 1200 device and only made the first two payments… jump to another carrier and abandon the one with the finance plan. What’s the recourse for the carrier?

The same recourse any other lender has for a borrower that defaults.

Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#6
post #3
post #2

Can't the operators just sell unlocked phones with monthly installments instead? The installment plan will then include free service for some amount of data/minutes. If the user chooses to switch operator, they are still bound by the installment contract to pay off the phone.

Yes, but let’s just say you got a 1200 device and only made the first two payments… jump to another carrier and abandon the one with the finance plan. What’s the recourse for the carrier?

I bought a car, but then decided to not make the repayments.

What's the recourse for the lender?

Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#7
My friend bought an android phone from AT&T. Recently she unlocked it, and she was able to use other sim cards, but the phone was still branded with the AT&T logo and loaded with its software. The phone can’t make any over the air updates because it relies in AT&T to fetch carrier specific updates… which fails when she switches providers.

I’m torn because it’s either flash unofficial firmware from the internet or live without security updates until she buys a new phone, both of these undesirable from a security perspective. The phone was just released 4 years ago and it is in good shape; but all that flies out the window because of this and related stupid practices.

I’m not sure if that is also addressed.

Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#8
post #3
post #2

Can't the operators just sell unlocked phones with monthly installments instead? The installment plan will then include free service for some amount of data/minutes. If the user chooses to switch operator, they are still bound by the installment contract to pay off the phone.

Yes, but let’s just say you got a 1200 device and only made the first two payments… jump to another carrier and abandon the one with the finance plan. What’s the recourse for the carrier?

> jump to another carrier and abandon the one with the finance plan. What’s the recourse for the carrier?

Subprime auto lenders use “electronic devices to remotely shut down vehicles” [1].

Carriers could install remote management profiles on phones financed for subprime borrowers. If a borrower defaults, the loan is sold to a collector and phone erased and put in lost mode.

It isn’t pleasant. But neither is being locked into a phone plan you don’t want.

[1] https://www.bostonglobe.com/business/2017/03/14/car-lenders-...

Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#9
post #2

Can't the operators just sell unlocked phones with monthly installments instead? The installment plan will then include free service for some amount of data/minutes. If the user chooses to switch operator, they are still bound by the installment contract to pay off the phone.

That’s how it should work. My understanding is that the carriers (probably correctly) assume that there are more people who will buy a cool phone if they don’t think about it as a short term loan – and then keep paying the same price after the phone is paid off. If they had to say “$900 in 24 payments of $50” more people would decide they don’t need the “Pro” model and the carriers would be forced to compete with the banks on financing terms.

Re: FCC wants all phones unlocked in sixty days, AT&T and T-Mobile aren't so keen

#10
post #2

Can't the operators just sell unlocked phones with monthly installments instead? The installment plan will then include free service for some amount of data/minutes. If the user chooses to switch operator, they are still bound by the installment contract to pay off the phone.

That is how it works in Canada now. If you cancel your contract, you have to pay the remaining balance immediately. No fees, just the remainder.
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