NCTA Reiterates Support for 6-Month Handset Unlocking Mandate

NCTA reiterated in reply comments this week the group’s advocacy of giving wireless providers six months to unlock handsets after they’re activated, not the FCC’s proposed 60 days (see 2409110019). While a handset unlocking mandate will be good for competition, the FCC should keep in mind the risk of fraud, NCTA said. “It typically takes a mobile wireless provider longer than 60 days to determine accurately whether a handset is subject to fraud or trafficking,” the group said: Comcast has described “why it can take five months or longer to confirm that patterns of missed bill payments and extensive periods of non-usage, the primary indicia of handset fraud, are attributable to trafficking.” Comments were posted in docket 24-186. In another filing of note, the American Financial Services Association (AFSA) agreed with comments that the FCC lacks legal authority to impose a mandate (see 2409240038). “An FCC mandate to unlock handsets before the installment plans are fully paid off would impinge on state law terms of service and financing agreements providers have with customers,” AFSA said. A mandate would also interfere with agreements between carriers and financial institutions “that offset some of the … financial risks associated with financing handsets for customers,” the group said: “Those agreements necessarily require wireless providers to lock handsets to the wireless provider’s service until the installment plan is paid off.” The Cloud Communications Alliance supported a 60-day requirement but said immediate unlocking would be even better. “As the record reflects, requiring unlocking has not impeded the offering of discount pricing plans for mobile devices either in the United States or in other countries,” the alliance said. “The unlocking requirements applied to Verizon have not prevented the company from offering discounts and, as it states in its comments, an industry-wide unlocking standard will not eliminate discount pricing.”