The top U.S. telecommunications regulator on Thursday demanded that wireless providers voluntarily agree on the rights of consumers to unlock mobile devices once contracts end, or the Federal Communications Commission will make it a rule.
At issue is whether cellphone buyers, who often get new devices at a heavily subsidized price in return for committing to long-term contracts, should be able to take their gadgets with them when they change carriers.
The FCC and the wireless trade group CTIA have been working for eight months on developing a policy for the industry's Consumer Code that would address the rights of phone owners to unlock their devices.
In a letter to CTIA President Steve Largent on Thursday, FCC Chairman Tom Wheeler urged the industry to adopt the new unlocking policy within weeks, before the holiday shopping season.
"Enough time has passed, and it is now time for the industry to act voluntarily or for the FCC to regulate," Wheeler said in the letter posted online.
According to Wheeler's letter, the carriers agree that consumers should be able to unlock their devices once their contracts are fulfilled but have not agreed to a policy of notifying customers when their device is eligible for unlocking or automatically unlocking the device when it becomes eligible.
"Absent the consumer's right to be informed about eligibility, any voluntary program would be a hollow shell," Wheeler said in his letter.
The ban on unlocking originates in the U.S. copyright law overseen by the Library of Congress. The White House in March responded to an online petition protesting the law and sided with the thousands who signed it