The Federal Communications Commission (FCC) has proposed new rules to make it easier to unlock smartphones and change carriers. The chairman of the Federal Communications Commission (FCC) made the announcement on Thursday, June 27.

The proposed regulations would require cellular carriers to unlock cell phones 60 days after activation.

"True competition benefits from transparency and consistency," FCC Chair Jessica Rosenworcel said in her announcement. 'That's why we are proposing clear, nationwide cell phone unlocking rules. When you buy a cell phone, you should have the freedom to decide when to change your service to the carrier of your choice, and you should not be stuck with a device you own due to practices that prevent you from making that choice."

The three major wireless carriers have already implemented unlock policies; AT&T and Verizon currently have a 60-day unlock policy; T-Mobile's policy is even shorter, 40 days after activation.

However, both T-Mobile and AT&T require that the phone be paid off before unlocking the handset, even during the waiting period.

It is unclear whether the FCC rules will change the full payment requirement. Typically, if a smart phone is not paid for in full, those costs are pushed into the monthly phone bill. Carriers may change how they structure contracts, or they may require that the phone be purchased up front rather than over the term of the contract.

In the U.S., unlocked phones are a growing segment of smartphones; a 2020 study by the NPD Group found that there are an estimated 50.1 million active unlocked phones in the United States. A Statista study last year showed that there were over 311 million smartphone users in the U.S.

Although somewhat extrapolated, this means that 16% of smartphone users have unlocked handsets. However, the NPD press release also suggests this: the number of unlocked devices in 2020 was on the rise, probably due to COVID, with stores and carrier branches closed for most of that year.

The number of unlocked terminals may have declined or stabilized during that time, but this is the most recent survey we could find.

Other than this announcement, there is not much more information available. The press release states that the regulatory division is seeking comments on the proposal; the FCC will hold a public meeting on July 18, where it will vote on the rulemaking notice.

After this meeting, a request for comments on the rule will be opened; it appears that the rule is already in the works as the FCC is considering whether the new requirements should apply to current or future contracts.