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.
It is very much still a thing and the contracts still exist in some form, specifically phone financing and locking. If you finance a cellphone from Tmobile, it will be locked to Tmobile until you’ve paid for the phone in full, which is usually over two years of payments. This is why carriers offer deals on phones purchased through them, and have those upgrade-every-year type plans. The contract has just switched from the phone service, to the phone itself. This is also why if you walk into any carrier’s store, they’ll try and convince you to trade in your perfectly good paid-for device for the next years model with a decent trade in value, but only if you finance the new phone.