Long-term carrier lock-in could soon be a thing of the past in America after the FCC proposed requiring telcos to unlock cellphones from their networks 60 days after activation.
FCC boss Jessica Rosenworcel put out that proposal on Thursday, saying it would encourage competition between carriers. If subscribers could simply walk off to another telco with their handsets after two months of use, networks would have to do a lot more competing, the FCC reasons.
“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,” Rosenworcel said.
Carrier-locked devices contain software mechanisms that prevent them from being used on other providers’ networks. The practice has long been criticized for being anti-consumer.
Carriers will offer better deals on the phones though if you’re planning to stick with them.
I’m looking at a $1000 phone that ATT will give me for 2.99/month for 2 years. That’s over 85% off on the phone. The trick is they give it to you by actually charging like $42/month, but then giving a $39 credit every bill for 2 years, so you have to pay the difference on the $1,000 phone if you jump carriers.
But since they’re the only carrier that works at my office, and this is gonna be a work phone (my company pays me a monthly stipend for it), I can live with that.
You just end up paying a premium for your mobile plan at that point. There are much cheaper plans than the ATT one, and for some, you’ll end up paying way less if they buy the phone outright and subscribing to those.
There are cheaper plans that subsidize under the AT&T network even.