Cell Phone Firms Sued Over 'Lock' Codes

[Mike Temporale]

<div class='os_post_top_link'><a href='http://www.msnbc.msn.com/id/5160230/' target='_blank'>http://www.msnbc.msn.com/id/5160230/</a><br /><br /></div><i>"A consumer watchdog group sued three cell phone companies on Monday for "locking" their phones to make it harder for customers to switch carriers. The Foundation for Taxpayer and Consumer Rights filed suit accusing AT&T Wireless Services Inc., T-Mobile USA Inc. and Cingular Wireless, of using software in their handsets that prevents them from being used on a competitors' network."</i><br /><br />I can see understand the carriers argument. Subsidizing the cost of the phones can really help people that otherwise could not afford a phone. However, there are some of us out there that would rather pay full price for the phone upfront knowing we can do what we want with the phone down the road. I don't see why they can't offer prices with a contract and prices without a contract? (where no contract means the phone was purchased outright)

[tsahnocub]

You can buy phones outright without any new activation discounts at retail places like Circuit City, however, they're the same phones, so their still SIM Locked.

Personally, I like having a GSM account and being able to use any unlocked phone I want, especially since sometimes the carrier I'm with doesn't have the best selection of phones.

Currently I'm using an unlocked SPV E100 on AT&T, and thinking about upgrading to the MPx100 when it's released, and all this is without AT&T knowing or caring what phone I have, and my switching phones not effecting my contract.

Would be much nicer if you could buy a sim unlocked phone from the carriers without the activation discounts though.

[Ben]

I don't really have a problem with the carriers locking the phones, but I do think they should be willing to unlock them for a reasonable fee. They can subsidize the phones based solely upon contracts and high early termination fees. The SIM-lock is just a redundant precaution, one that really just creates a seedy, underground business of tech-savvy people charging to remove the SIM-locks for people.

:idea: I think the carriers ought to be willing to unlock the phones for free for good customers and at a modest price for everyone else. Why give that potential revenue to phone hackers who happen to crack the codes or develop sophisticated code generating software?

[possmann]

I agree - a fee schedule should be set up to allow people more flexibilty in switching their carriers - just imagine if we had to do this with computers and switching ISP's!