15 Democratic Attorneys General Want FCC to Unlock Phones

WASHINGTON, Nov. 25, 2024 – A group of 15 Democratic attorneys general want the Federal Communications Commission to move forward with its phone unlocking proposal.

“Our offices consistently receive complaints from consumers who report that they were misinformed or deceived about wireless device offers, including offers of ‘free’ handsets, which lure them into contracting with a particular service provider for an extended period of time until the device can be unlocked,” the AGs wrote in a letter to the agency posted Monday. “The Commission’s proposed rule will significantly decrease this kind [of] gamesmanship.”

The agency proposed in July requiring mobile carriers to unlock phones after 60 days, meaning the phones could then be switched to another provider’s network. Other consumer protection items have moved forward along party lines in the last year, but the phone unlocking proposal was put forward unanimously.

Carriers were split, though. AT&T and T-Mobile opposed instituting any uniform requirement, arguing they can offer better upfront discounts by locking subscribers in until their phone is paid off. They and cable companies that resell wireless service have also said it's easier to detect fraud in the current system.

Verizon, already subject to a 60-day unlocking requirement as part of a spectrum purchase agreement, was alright with leveling the playing field. Dish-owner EchoStar, which is still trying to become more of a competitor to the three dominant carriers, met with FCC staff last week to express support for the item.

Consumer groups also supported the idea, arguing an easier process for switching carriers would increase competition in the industry and create a more robust secondary market, both of which they said would be good news for low-income customers. 

The attorneys general had a similar point of view: “The new rule will incentivize providers to offer better terms of service to all customers rather than offering enticing deals to lock in new customers,” they wrote.

The group was led by Massachusetts Attorney General Andrea Campbell, and included AGs from Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, and Rhode Island.

AT&T has reiterated its opposition in meetings with agency staff in recent weeks, arguing the FCC doesn’t have authority under recent Supreme Court precedent limiting deference to agency interpretations of law. T-Mobile has said the same, but cited a separate decision from the high court that blocks agency rulemakings on major economic or political questions without explicit Congressional direction.

In its more recent staff meetings, Verizon has said it still supports the item, but would be open to a 180-day unlocking requirement.