Cellphone Unlocking Ban Overturned, Now Legal

President Obama is expected to sign a bill in the coming weeks to make it legal to unlock cellphones. That may give users more choice about the cellphone network they use to get service, though there will still be technical restrictions.

Most new cellphones are sold in a 'locked' state, meaning that they can only run on a particular cellphone network carrier. Usually that's because the network sells the handset at a reduced cost, hoping to make money back from associated monthly service fees and call charges. Unlocking a cellphone effectively modifies the phone's software, and thus allows cellphone users to choose different service providers.

Unlocking Cellphone Ban a Quirk of Copyright Law

The practice of unlocking without carrier consent has technically been illegal for the past 18 months. That's because a technicality means it comes under the Digital Millennium Copyright Act (DMCA), a law more commonly associated with actions such as removing copy protection measures on commercial DVDs.

The Librarian of Congress, a government appointee, has the right to make exemptions to the DMCA. Until the start of last year, phone unlocking was among the exemptions. That changed in a ruling many observers have blamed on lobbying from the cellphone industry.

Now, in a rare intervention, Congress has agreed to pass a law that specifically brings back the exemption and makes unlocking a cellphone legal. The law will remain in place until the next review by the Librarian of Congress, expected late next year. Political insiders believe that even if the Librarian of Congress does remove the exemption, politicians will simply vote to restore it again.

The new law also makes clear that operating as a "bulk unlocker" is entirely legal. A bulk unlocker is any business that charges nominal fees to unlock the phones of cellphone customers. Previously, bulk unlocking was a gray area of the law.

Cellphone Unlocking Still Has Restrictions

In principle, then, users can now unlock a phone and use it on whichever network offers the best deal. In practice, users still face some restrictions.

Firstly, any minimum contract terms still apply. While users can unlock their phone at any time, they must still pay their monthly service charge for the duration of the contract, even if they switch service and use a different carrier.

Secondly, technical restrictions will limit choice. For example, many phones sold on AT&T or T-Mobile won't work on the Verizon and Sprint networks because of different technology used to connect the phones to the networks. Meanwhile, phones that support high-speed 4G services may not get the full benefit of increased speeds on all networks. That's because 4G services may not be available in varying parts of the country, depending on which provider is used.

What's Your Opinion?

Have you unlocked your phone in order to use another cellphone provider? Do you believe you have the right to use a phone on any compatible network or do you believe that carriers should be allowed to impose restrictions? Would the ability to buy a phone on one network but use it on another affect your choice of handset?