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February 27, 2008

Proposed Bill Could Remove iPhone Locking in U.S.

iphone3.jpg

A new Congressional bill sponsored by Representative Ed Markey (D-Mass) would require that every mobile provider offer subsidy-free wireless customer equipment, thereby breaking the exclusive deal between Apple and wireless carrier AT&T and allowing owners of the handset to subscribe to a carrier of their choice. According to news.com, a hearing is scheduled on the draft bill, entitled "Wireless Consumer Protection and Community Broadband Empowerment Act" for this morning with a lobbyist representing the major wireless carriers schedules to speak about the bill.

If passed, the bill would establish new rules and regulations for wireless carriers to following, including offering subsidized services as well as clearly disclosing rate plans to customers in a "clear, plain, and conspicuous manner."

Carriers would also be obligated to provide customers with more detailed maps of network coverage areas and would be forced to allow customers to cancel contracts for any reason without penalty within the first 30 days of service as well as prorate any fees associated with leaving a contract early. Wireless carriers have argued that early termination fees help cover the cost of the subsidized cell phones which arrive as part of standard plans.

No estimate has been given as to how long this bill will be in debate or when it might effectively enter into law.

If you have any thoughts on this, let us know over in the comments or forums.

Posted by chrisbarylick at February 27, 2008 9:00 AM
Category: iPhone
Buy from: Apple, iTunes, Amazon.

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Comments

Unlocking the iPhone is no big deal, as Apple already sells unlocked phones, as required in Germany, for $1,450.

What this will do is end subsidies, and people will end up paying $200-$300 for their "free" or "cheap" cellphones.

This proposal will not be made into law, and is merely politicians posturing as if protecting people.

Posted by: hardmanb at February 27, 2008 5:44 PM

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