Mobile Phone Unlocking: An Obvious Affordability Win for the FCC

It’s not breaking news that consumers are tired of feeling ripped off. Years of high inflation thanks to the Biden administration, junk contracts, and seemingly endless fees have taken their toll. 

As a result, the Trump administration has been prioritizing lowering costs and price transparency. They’ve made real progress: take TrumpRx, for instance. This direct-to-consumer website is a one-stop shop for consumers to see low-cost generic prescription options so that they can easily choose the product and price that is right for them and their family. What’s more, the administration has partnered with newer entrants to the market, like Mark Cuban’s Cost Plus Drug Co., to ensure that Americans aren’t beholden to the high prices charged by brand-name pharmaceutical companies. Instead, they can see all the options available to them, in one place, and make a decision about which prescription drug—and at what price point—works best for them. 

It’s an example of government actually working to make things easier—and more affordable—for the American people. There’s no reason to stop with health care. 

Drug prices are a major pain point because it’s something that almost all Americans will spend money on at some point in their lives. Another is connectivity: Virtually everyone in the country pays a monthly fee to cellphone carriers, making it an important vector in the affordability situation, up there with drugs, groceries, and transportation. Yet competition in the sector is artificially constrained.

The mechanism by which competition is dampened is carrier locking: the highly annoying practice of carriers “locking” phones to their network for 12 months or more, preventing consumers from easily switching to a new wireless plan. 

It means consumers can pay for a device and still be denied the freedom to use that phone with their preferred provider. This is bad for families trying to cut monthly bills and terrible for healthy competition: It traps customers who might otherwise want to switch and take advantage of better pricing or new features being offered elsewhere. 

Unlocking phones would level the playing field for carriers, generate more competition in the marketplace, allow new entrants a fighting chance, and foster more innovation in terms of offerings and technology. 

With more competition and choice, consumers could pick more affordable options and not be beholden to the big, major cellphone conglomerates. For example, carriers like Patriot Mobile and PureTalk are offering wallet-friendly options for those looking for a better deal, and others are following suit. Switching to Trump Mobile, for instance, requires no contract or credit check, and Mint Mobile offers new customers three months of unlimited service. Switching plans could save American families up to $1,000 a year on their phone bills if unlocking were required. 

And we’ve seen what new entrants can do for competition in other spaces as well. Federal Communications Commission (FCC) Chairman Brendan Carr recently pointed to EchoStar’s spectrum sale to AT&T and SpaceX, calling it an “important turning point for the country” that adds competition and drives prices lower. Starlink has put that promise into action, recently offering customers in rural areas high-quality service for as little as $29 a month.

But for that kind of competition to fully take hold, the rules need to catch up. SpaceX, alongside rural wireless providers, is now urging the FCC to update its unlocking policies. These groups recommend that phones unlock automatically after 180 days (the same amount of time that Republican senators have also endorsed this year), giving consumers a clear, predictable path to switch.

If you’re trying to cut costs, the market is practically paying you to switch. But most consumers can’t. These deals are effectively blocked by arbitrary, carrier-imposed phone-locking periods, so it’s no surprise that support for unlocking is widespread and bipartisan. According to a recent poll by Fabrizio Ward, 93 percent of voters agree that transferring your device should be as easy as it is to take your phone number to a new provider. That kind of almost unanimous support gives Carr a prime opportunity to build upon the administration’s work to lower wireless prices.

When consumers have more options, providers are forced to lower prices, improve transparency, and deliver better value to stay in the game. A more competitive marketplace ultimately means Americans are spending less and getting more for every dollar. With broad bipartisan public support, a booming market full of better deals, and a political moment ripe for action, there is no reason to wait. It’s time to embrace cellphone freedom and let Americans choose.