9/23 Joint Reply Comments Urging FCC to Require That All Providers Automatically Unlock Handsets Within 60 Days, Regardless of Device Payment Status

The Open Technology Institute at New America, Public Knowledge, and Consumer Reports filed joint reply comments at the Federal Communications Commission (FCC) regarding a July 2024 Notice of Proposed Rulemaking (NPRM), in which the FCC proposes requiring “all mobile wireless service providers to unlock handsets 60 days after a consumer’s handset is activated with the provider, unless within the 60-day period the service provider determines the handset was purchased through fraud.” We also signed onto a public interest letter to the Commission in support of the proposal

In these reply comments, our groups reiterate our initial comments, urging the FCC to require that all providers automatically unlock handsets within 60 days, regardless of device payment status.

Additionally, our groups reflect on the various perspectives other commenters pose, emphasizing that:

• Several other commenters support automatic unlocking—even describing additional factors not addressed in our initial comments, such as how a single locked device on a family plan can effectively lock any other devices on that plan, even if those other devices have been paid off.
• The handset unlocking requirement would not compel mobile wireless service providers to discontinue legitimate device subsidies, as some commenters claim.
• Due to its compatibility with legitimate device subsidies, the handset unlocking requirement would not necessitate the kind of price hikes that would lead to more consumers acquiring less secure devices from foreign markets, as some commenters claim.
• While some commenters note that churn rates indicative of competition growth have already risen over time, this handset unlocking requirement could increase churn rates further, which would benefit consumers and the public interest.
• Increasing the wait period to the 180 days suggested by some commenters would not only undermine the premise of an unlocking policy, but also fall short of effectively protecting consumers, as most overseas buyers will be able to bypass these locks regardless.