T-Mobile warns FCC's 60-day unlocking rule could cripple phone subsidies by up to 70%!

T-Mobile and AT&T are vehemently opposing the FCC’s new rule that mandates carriers to unlock phones within 60 days of activation. In a filing dated October 17 (via Ars Technica), T-Mobile told the FCC that consumers, not service providers, stand to lose the most should the new rule go into effect.

The Un-carrier pointed out that its prepaid customers, for example, would see subsidies reduced by 40-70% for both its lower and higher-end devices, such as the Moto G, Samsung A15, and iPhone 12. “A handset unlocking mandate would also leave providers little choice but to limit their handset offers to lower cost and often lesser performing handsets,” the company noted. It also said that free handset schemes could go away for good if the rule is imposed.

Moreover, T-Mobile argues that the FCC does not have the authority to enforce the 60-day unlocking rule for carriers. It asserts that its unlocking policies are clear and that “there is absolutely no evidence of consumer harm resulting from these policies.”

Similarly, AT&T has expressed that requiring carriers to unlock phones before they are fully paid off could negatively impact consumers by putting pressure on handset prices and flexible financing options.

Given the strong objections from major US carriers, it remains uncertain whether the proposed FCC rule will be implemented.