Consumer advocates have reason to celebrate as President
Obama signed into law the Unlocking
Consumer Choice and Wireless Competition Act. This makes unlocking a phone
legal once again so consumers have the ability to switch from one carrier to
another with greater ease. Over 110,000
consumers signed a petition to make it legal, hastening the legislative action.
This reverses a recent review by the Library of Congress to allow it to expire.
Although it wasn't heavily prosecuted, many consumers who
unlocked their cell phones could have theoretically been charged with violating
the Digital Millennium Copyright Act. Before January 2013, there was an
exemption in place to allow users to unlock their cell phones, but the Library
of Congress allowed this exemption to expire at the end of 2012, citing a
greater number of options in the marketplace for unlocked phones.
There are several reasons why consumers advocated for this
change. Although many enjoyed the discounted phone they received when signing a
contract with a carrier, some didn't like the idea of making such a commitment
to one carrier. In addition to that, those who travel might not want to have a
phone that won't work for them overseas or one that requires insane roaming
rates. The new law gives consumers greater freedom to use the carrier they see
fit for their preferences and situation.
Additionally, consumer advocates have heavily criticized the
Digital Millennium Copyright Act's enforcement, suggesting that many consumers
who had no interest in infringing on someone's digital intellectual property
were being affected. These were people
who were only looking for the best product at the best rate. Some even believe
that the update to the Digital Millennium Copyright Act that outlawed unlocking
cellphones was more a product of wireless carrier lobbyists, rather than copyright
enforcement.
While some tablets are still locked, the bill also directs
the Librarian of Congress to make a ruling on whether other mobile devices,
like tablets, should fall under the exemption. This could open the doors to
greater customer freedom for other electronic devices as well.
Finally, in addition to greater freedom for the consumer,
the Unlocking Consumer Choice and Wireless Competition Act should hopefully
create greater competition among carriers to deliver the best product and app offerings. Carriers will need to invest more in innovative products and less on
lobbyists to increase their revenues. Only time will tell how much this affects
the industry.