FCC Tells Wireless Companies: Allow Unlocking Phones By Holiday Shopping Season, Or Else

After a lot of consumer and political pressure has built up, the Federal Communications Commission has issued an official letter telling the wireless industry to allow for unlocked mobile devices or face the consequences.

The heart of the problem is the fact that unlocking smartphones and tablets is technically illegal, according to the Digital Millennium Copyright Act. Except there was an exemption to the DMCA, allowing cellphone unlocking, until Jan. 26 of this year.

On that day, the exemption expired, and unlocking cellphones (and other mobile devices dependent on a wireless data connection) became illegal. This means that if you buy a device with one wireless provider, you must stay with that provider, by law, and never modify that device and use it with a different carrier when your contract is up.

Now the Federal Communications Commission (FCC) has asked the CTIA - a trade association of wireless companies - to voluntarily amend their industry's Consumer Code to allow for unlocked devices, or else. FCC Chairman Tom Wheeler wants the industry to adopt the policy quickly, before the holiday shopping season is in full swing, lest the FCC take regulatory action to force wireless carriers to change.

"For eight months, the FCC staff has been working with CTIA on an amendment to your Consumer Code in which this industry would address consumers' rights to unlock their mobile wireless devices once their contracts are fulfilled," stated Wheeler's public letter to the CTIA, sent Thursday, Nov. 14. The letter went on to say, "We are anxious to work with you and your members to resolve this matter expeditiously. Enough time has passed, and it is now time for the industry to act voluntarily or for the FCC to regulate."

Wheeler's letter went on to state a timeframe for the wireless industry's action: "Let's set a goal of including the full unlocking rights policy in the CTIA Consumer Code before the December holiday season."  

Popular pressure has been building along the fault line of allowing unlocked wireless devices throughout the year. A "We the People" citizen petition on Whitehouse.gov was filed after the October ruling by the Library of Congress's Copyright Office, which said it would not act to continue the exemption to the DMCA.

That petition stated the crux of the matter, saying:

"As of January 26, consumers will no longer be able unlock their phones for use on a different network without carrier permission, even after their contract has expired. Consumers will be forced to pay exorbitant roaming fees to make calls while traveling abroad. It reduces consumer choice, and decreases the resale value of devices that consumers have paid for in full. The Librarian noted that carriers are offering more unlocked phones at present, but the great majority of phones sold are still locked. We ask that the White House ask the Librarian of Congress to rescind this decision, and failing that, champion a bill that makes unlocking permanently legal."

The White House encouraged bills to that effect in March, but despite having proponents on both sides of the political aisle, no progress was made in Congress. Later, the Obama administration officially petitioned the FCC in Sept. to take action to "immediately initiate the process of setting rules" to allow consumers to unlock their devices. The Thursday move by the FCC is likely a direct result from this pressure. Now it's up to the wireless companies to make the next move.