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OTI’s Wireless Future Project filed a with Consumer Reports, Public Knowledge and the Benton Institute for Broadband & Society on February 5, urging the Federal Communications Commission to include a mobile handset unlocking condition on its pending approval of T-Mobile’s acquisition of Mint Mobile, one of the last large pre-paid mobile phone competitors. Given the recognized competitive and consumer-related benefits of a “reduced unlocking period,” our groups argue the Commission should require T-Mobile to commit to a shorter (60-day) unlocking period for all devices activated on its network. This would align with Verizon, which has been under a general open access and unlocking licensing condition related to devices operating on its nationwide 700 MHz C Block spectrum.

Consumer advocates have long argued that mobile phones should come unlocked by default, allowing users to more easily make choices about the device and service they purchase, as they can for most products. Locking smartphones to a network reduces wireless competition by making it more difficult for consumers to change carriers. Locked phones, particularly those tied to pre-paid plans, can disadvantage low-income customers most of all, since they may not have the resources to switch carriers or purchase new phones. Unlocked phones also facilitate a robust secondary market for used devices, providing consumers with more affordable options. We propose that after two years, all new devices provided through T-Mobile and activated on its network must be capable of automatic unlocking.