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Letter to the FCC Promoting Consumer Choice and Wireless Competition Through Handset Unlocking Requirements and Policies

September 16, 2024


Federal Communications Commission
Marlene H. Dortch
Secretary
45 L Street NE
Washington, DC 20554


Re: Promoting Consumer Choice and Wireless Competition Through Handset Unlocking Requirements and Policies, WT Docket No. 24-186


Dear FCC Chairwoman and Commissioners:


The undersigned groups write to you today in support of the Federal Communications Commission’s (FCC) Notice of Proposed Rulemaking on handset unlocking, which was adopted unanimously and with bipartisan support. The notice explores how best to achieve regulatory parity by crafting a uniform unlocking framework for the entire wireless industry. Fostering an industry-wide solution will create a level playing field for carriers and consumers alike. It is a common-sense policy approach and would be a welcome improvement to previous FCC unlocking decisions, which yielded asymmetric regulation and were imposed on an ad hoc basis with a limited record.


The current landscape for handset unlocking is a patchwork of requirements. Increasingly, it is driven by one-off regulatory conditions that are applied to individual wireless carriers as part of a transaction. For example, a carrier may have unlocking obligations tied to specific spectrum holdings or because of an acquisition. Meanwhile, other carriers may unilaterally set policies or follow industry best practices, such as the CTIA Consumer Code. A uniform approach applied across the industry will address this inconsistency, enhance competition, and create regulatory parity. In contrast, the current piecemeal approach to unlocking could further distort the market through the imposition of additional company-specific obligations in future mergers or spectrum acquisitions.


We believe uniformity benefits consumers and competition. A standard should be set after a close review of the record in this matter and with careful consideration of the impact of any obligations adopted by the Commission on various wireless industry segments.


In today’s dynamic wireless marketplace, carriers compete fiercely to win and retain customers by offering faster, better, and more affordable wireless products and services. Consumers, in turn, should have the freedom and flexibility to switch from one carrier to another competing provider. Adopting uniform unlocking standards across the mobile industry will enhance consumer choice and spur even greater competition. Unlike heavy-handed regulations such as price controls that discourage market entry and investment,
competition through parity will make the mobile market stronger. That is especially true where, as here, past FCC action already has created a regulatory imbalance.


Regulatory parity should be the Commission’s goal. Without a common framework, handset unlocking obligations will become even more convoluted as the market continues to evolve through future M&A, changes in spectrum holdings, new competitive entry, and the emergence of new business models and offerings.


Thank you for prioritizing this important issue. We look forward to working with the FCC on an approach that brings parity to handset unlocking across the mobile industry to the benefit of consumers and competition.


Sincerely,


James L. Martin, Founder/Chairman
60 Plus Association

Saulius “Saul” Anuzis, President
American Association of Senior Citizens

Steve Pociask, President and CEO
American Consumer Institute

Curt Levey, President
Committee for Justice

Roslyn Layton, PhD
Center for Communication, Media and Information Technologies, Aalborg University

Bronwyn Howell, PhD
Victoria University of Wellington
American Enterprise Institute

Petrus Potgieter, PhD
Institute for Technology and Network Economics

Silvia Elaluf-Calderwood, PhD
Jack D. Gordon Institute for Public Policy
Florida International University

Tom Giovanetti, President
Institute for Policy Innovation

Gerard Scimeca, Chairman
Consumer Action for a Strong Economy

Matthew Kandrach, President
Consumer Action for a Strong Economy