Consumers Regain Right to Unlock Cell Phones

Consumer advocates have reason to celebrate as President Obama signed into law the Unlocking Consumer Choice and Wireless Competition Act. This makes unlocking a phone legal once again so consumers have the ability to switch from one carrier to another with greater ease.  Over 110,000 consumers signed a petition to make it legal, hastening the legislative action. This reverses a recent review by the Library of Congress to allow it to expire.

Although it wasn't heavily prosecuted, many consumers who unlocked their cell phones could have theoretically been charged with violating the Digital Millennium Copyright Act. Before January 2013, there was an exemption in place to allow users to unlock their cell phones, but the Library of Congress allowed this exemption to expire at the end of 2012, citing a greater number of options in the marketplace for unlocked phones.

There are several reasons why consumers advocated for this change. Although many enjoyed the discounted phone they received when signing a contract with a carrier, some didn't like the idea of making such a commitment to one carrier. In addition to that, those who travel might not want to have a phone that won't work for them overseas or one that requires insane roaming rates. The new law gives consumers greater freedom to use the carrier they see fit for their preferences and situation.

Additionally, consumer advocates have heavily criticized the Digital Millennium Copyright Act's enforcement, suggesting that many consumers who had no interest in infringing on someone's digital intellectual property were being affected.  These were people who were only looking for the best product at the best rate. Some even believe that the update to the Digital Millennium Copyright Act that outlawed unlocking cellphones was more a product of wireless carrier lobbyists, rather than copyright enforcement.

While some tablets are still locked, the bill also directs the Librarian of Congress to make a ruling on whether other mobile devices, like tablets, should fall under the exemption. This could open the doors to greater customer freedom for other electronic devices as well.

Finally, in addition to greater freedom for the consumer, the Unlocking Consumer Choice and Wireless Competition Act should hopefully create greater competition among carriers to deliver the best product and app offerings. Carriers will need to invest more in innovative products and less on lobbyists to increase their revenues. Only time will tell how much this affects the industry.