11:36 am January 26, 2013, by Christopher Seward
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(Jason Getz, jgetz@ajc.com)
Starting today, it’s illegal to unlock your new subsidized mobile phone without your carrier’s permission.
The new rules, which don’t affect consumers who acquired phones before Saturday, come from the U.S. Copyright Office of the Library of Congress. Previously, you could unlock your subsidized device under the Digital Millennium Copyright Act. You could then sell the phone or use another carrier’s SIM card to start new service in another wireless network. The change is an update to the DMCA.
Carriers such as AT&T, Verizon Wireless and Sprint didn’t particularly like the fact that their subscribers could essentially jump ship after getting deeply discounted devices in exchange for monthly service commitments. According to Wired.com, however, carriers rarely went after individuals who unlocked their phones. Instead, they targeted businesses “that bought throw-away phones by the thousands, unlocked them, and shipped them overseas.”
“The carriers’ position has always been, it’s never been about individual consumers,” James Baldinger, an attorney for several providers told Wired.com. “They are concerned about traffickers that steal subsidies and in the end increase the cost of wireless for consumers across the United States.”
Many carriers now provide unlocked phones, and the U.S. Copyright Office says consumers have a wide range of options in obtaining such devices.
While carriers haven’t gone after individuals, they still could become targets of civil suits or criminal fines. Under the new mandate, individuals could face fines of up to $2,500, and cellphone resellers could be fined as much as $500,000 and face prison, Brad Shear, a Washington D.C. expert in social media and technology law, told ABC News.
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67 comments Add your comment
Andrew79
January 26th, 2013
9:33 pm
Well – they won’t let me post my comment. I guess it is true – the media only wants their own opinion expressed…but claim it is news.
I’ll just post this on my Facebook – tell people to avoid this source.
vinny
January 26th, 2013
9:36 pm
Phone subsidies? I gots to gets me sum o’ dem Obama-phones! Let someone else pay for it!
That’s economic justice, Obama style!
Andrew79
January 26th, 2013
9:38 pm
Still blocking me – not swearing – crappy equipment?
Andrew79
January 26th, 2013
9:40 pm
Ah, forget it, I’ll just complain that my voice is being blocked.
They guy that runs this rag in his basement might care – or he or she might be the person not letting me comment.
Either way…why on earth would you read anything in here? Take a look at their other articles…talk about biased.
Douglas
January 26th, 2013
9:47 pm
The “Obama Phones” were started by Ronald Reagan.
No Artificial Flavors
January 26th, 2013
9:57 pm
You can get an unlimited everything plan in most countries except the US for $20-$30 per month, or less. Our politicians have been bought. When Russia does better at mobile communications for its people, something is wrong.
DawginNY
January 26th, 2013
10:23 pm
SCREW CONGRESS!! Locking phones is anti-competitive. We should be able to shop the market for the best price on unlocked phones, independent of service. And THEN, we should be able to shop the market for the best price on service, WITHOUT A CONTRACT.
bigjake
January 26th, 2013
10:36 pm
Stop crying people, you are still going to re-elect all the congressmen, senators. govenors, mayors, councilmen, reps and presidents that are in office now doing nothing but representing big money and special interest.
Bubba
January 26th, 2013
10:51 pm
So this means that I’ll now be able to get a discount on monthly service if I bring my own phone to the phone company, right?
aps
January 27th, 2013
9:08 am
What is a big deal is the fact faceless, nameless, and UN-ELECTED bureaucrats are implementing rules and regulations all throughout government agencies.
Up On My Soapbox
January 27th, 2013
9:09 am
This only proves that some of the lawmakers are heavily invested in the cell phone companies.
anotherdamnjack
January 28th, 2013
1:13 am
The cellular companies try to lure new customers with discounted prices on new cellphones and complain when your contract is up and you try to use your cellular phone with another company who might provide a better plan or customer service. If those companies don’t like it then maybe they should offer better services and terms as an incentive. After a phone is purchased, (at whatever price) the customer should be able to do with it want they want!!
ralphy
January 28th, 2013
10:30 am
No worries a company called O2 wireless will have unlocked phones for sale in a couple months very high quality phone with latest OS system. I have been following them for a while.
pete
January 28th, 2013
2:36 pm
Anti-consumer law sneaked in the back door by industry lobbyists. Congress turning a blind eye ?
Shame on the them .
Anyway it is a good idea to complain to congressman and sign the petition here -
https://petitions dot whitehouse dot gov/petition/make-unlocking-cell-phones-legal/1g9KhZG7
Dr Wireless
January 28th, 2013
3:28 pm
If the carriers actually provided quality service, competitive rates, and no deceptive practices like sharing one data plan with multiple users, they would not have to sell equipment for under cost and bind their subscribers with contracts to keep them from defecting. Watch for a mass exodus from AT&T to T-Mobile when SmartPhone users findout they can unlock their devices and save over $40 per month with T-Mobile Unlimited Value Plans.
Vickie
January 30th, 2013
12:54 pm
So congress can make a decison about “not allowing people to unlock thier phones”, but passing a budget which is their main job…..that can wait. Backwards doesn’t beginning to discribe it!
Nweitzche
February 1st, 2013
4:13 pm
God is Dwead