Long-term carrier lock-in could soon be a thing of the past in America after the FCC proposed requiring telcos to unlock cellphones from their networks 60 days after activation.
FCC boss Jessica Rosenworcel put out that proposal on Thursday, saying it would encourage competition between carriers. If subscribers could simply walk off to another telco with their handsets after two months of use, networks would have to do a lot more competing, the FCC reasons.
“When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice,” Rosenworcel said.
Carrier-locked devices contain software mechanisms that prevent them from being used on other providers’ networks. The practice has long been criticized for being anti-consumer.
In Denmark you get two options, you can buy an unlocked phone with cash. Or purchase a subscription with it, and the provider gives you some incentive for it. The subscription is locked for 6 months which is the max by law.
If I buy a phone with the subscription, the discount means you would usually pay 80% of the phones value.
That locks you to a subscription for 6 months that is usually more expensive than the other offers out there, but the difference doesn’t make up for the reduced price of the phone over the 6 month period.
So you are actually saving money, as long as you remember to switch to a cheaper subscription after the 6 months pass. The telecom of course hopes you don’t, and that’s their incentive for taking a hit on profit in the short term. It buys them marketshare.