Phone-Unlocking Deal Aids Consumers, Preserves Contracts
By Todd Shields and Gerrit De Vynck - Dec 13, 2013
U.S. wireless carriers agreed to be more transparent about how to unlock phones while preserving their system of contracts and discounts to keep customers loyal.
Under pressure from regulators, Verizon Wireless, AT&T Inc. (T), Sprint Corp. (S) and T-Mobile US Inc. (TMUS) said yesterday they’ll let consumers use smartphones on other networks after contracts expire -- and give them explicit instructions on how to modify, or unlock, their gadgets to do so. They’ll also notify customers when phones are eligible for unlocking.
The mobile-phone companies won’t have to let consumers free up their phones while under contract, unless they pay a termination fee. That keeps in place the model where users buy phones on installment plans or accept two-year subscriptions in exchange for hundreds of dollars in discounts for devices such as Apple Inc’s iPhone.
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