NCTA and Comcast Urge 6-Month Handset Unlocking Mandate
NCTA told the FCC that giving wireless providers six months to unlock handsets after they’re activated, not the FCC’s proposed 60 days, would allow providers time to “ascertain whether a handset has been subject to fraud.” Comments were filed this…
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week in docket 24-186, on an NPRM commissioners approved 5-0 in July (see 2409100048). A six-month mandate would mean “increased competition among providers, and, in turn, lower service prices and more competitive offerings than under existing unlocking policies,” NCTA said. Comcast also urged a six-month unlocking requirement. The longer period “would give wireless providers a sufficient opportunity to detect and combat handset fraud as well as a greater opportunity to identify other payment issues, while promoting increased competition and consumer choice in the wireless marketplace,” Comcast said. The Cloud Communications Alliance supported an order requiring unlocking by default when a phone is activated. That would “further enhance competition, avoid any consumer confusion, and prevent wireless providers from interposing delays or objections,” the alliance said: Unlocking by default "is the rule in several other countries and has long been supported by consumer advocates.” The Coalition of Rural Wireless Carriers said the mandate should apply only to handsets customers buy outright. “The proposed rule will interfere with contractual arrangements in ways that will disproportionately harm financially vulnerable consumers,” the coalition said. For smaller providers, “the incentive to offer device installment contracts to credit-challenged consumers will likely decrease if consumers can more easily break these agreements and take devices -- without paying for them -- to other carriers,” the group said. But EchoStar backed a requirement that applies to all devices “whether prepaid or postpaid and regardless of financing status.” It also called on the FCC to issue a Further NPRM on porting practices. “Carriers today impose varied and often onerous requirements on consumers seeking to port their phone numbers to new carriers that -- like unlocking rules -- may hinder their ability to switch providers,” the company said. The Advanced Communications Law and Policy Institute at New York Law School advised the FCC not to “micromanage” handset policy. “Unfortunately, the Commission, notwithstanding its confidence in the need for prophylactic regulation, fails to offer persuasive data, analysis, or legal justification for its proposed handset unlocking rules,” the institute said: “In reality, the U.S. wireless sector is robustly competitive, vibrantly innovative, and incredibly responsive to consumer demands, including those related to handset unlocking.”