Two of the top three telecommunications companies in the United States, T-Mobile and AT&T, are disagreeing with the Federal Communications Commission's new unlocking rule that will trump their services. The new 60-day policy under the rule dictates that carriers can only lock devices within this period and already unlock the device for their users regardless of their postpaid plan.
It has been a practice among telcos to lock mobile devices for around a year or more when they start their postpaid plan with the company, but this is about to change as the FCC is looking to apply its new rule.
T-Mobile, AT&T Disagree with FCC's New 60-Day Unlocking Policy
Complaints from two top networks are now rising against the FCC's new rule, with T-Mobile filing its appeal last week to block the unlocking process that will only give carriers 60 days to make devices exclusive to their network. According to T-Mobile, "If the Commission mandates a uniform unlocking policy, it is consumers—not providers—who stand to lose the most," and the company will be forced to revamp its postpaid plans offered to the public.
T-Mobile said that the 60-day policy from the FCC could mean several benefits or perks would no longer be available to users, as subsidies will be reduced by around "40 percent to 70 percent" for budget or premium smartphones.
Moreover, T-Mobile noted that this unlocking rule may leave network providers with little choice and offer only "lesser performing handsets" so that it could lower the cost of its services.
FCC's Unlocking Rule Set to Remove Locked-In Barriers
The FCC recently approved its Notice of Proposed Rulemaking (NPRM) with a unanimous vote, ushering in the new unlocking rule that would require carriers to unlock smartphones 60 days after they were activated by a provider. This led to networks like T-Mobile, AT&T and other companies to appeal or respond against this new rule.
Carrier-Lock is Getting a Revamp From the FCC
Buying a new smartphone under a postpaid plan generally means that users will have to undergo a lock-in period where their devices could only connect to the company's network and read SIMs or eSIMs by the service. For the longest time, companies like AT&T, T-Mobile and Verizon offered lock-in contracts to their subscribers for a specified amount of time or until their mobile handset is fully paid off.
This goes alongside access to different paid experiences from telcos like unlimited calls or texts which is now offering availability to contact other networks, 5G internet access and other benefits or perks available. While these are beneficial for users, having their smartphones locked means that they have to hold on to the device until the contract ends or pay separately to unlock them.
The fast-paced mobile market now has made it hard for those locked in a contract to get the upgrades customers wish for unless it is offered as a trade-in, but this will constitute another locked smartphone for them. The FCC's unlocking rule has two sides to it, with one benefitting users to no longer wait or pay to end a contract, but major telcos like T-Mobile and AT&T are not supporting the idea.
