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Wireless carriers lock out consumers.(View point)(phone locking)

Consumer Reports

| January 01, 2008 | COPYRIGHT 2008 Consumers Union of the United States, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Beth Granger of Port Washington, N.Y., was among the first to rush out and buy an iPhone when they hit the market. She loves the sleek new device but hates her forced marriage to AT&T, iPhone's exclusive service provider. Although she had been a satisfied Verizon customer for years and had heard that AT&T's service in her area wasn't as good, she switched.

Now she'd go back to her old carrier if she could take her iPhone with her. But that's not possible; those carriers use incompatible networks, and the phone will work only on AT&T's.

SWITCHING IS DIFFICULT

Although iPhones come with a hefty price tag and no rebates from the carrier, the big U.S. wireless companies generally offer substantial discounts on phones to consumers who sign one-or two-year service contracts.Many phones work only on the carrier's network, and customers pay hefty penalties when they break their contracts.That effectively prevents consumers from moving among providers in search of lower price or better service.

It's legal for carriers to "lock" the phones that they sell into their network, but a 2006 ruling allows consumers to reprogram them. Most people are unaware of this. Even if they know, the process of unlocking a cell phone in the U.S. can be complicated and time consuming.

In Europe, Asia, and elsewhere, many cell phones come to consumers unlocked. Some phones have a SIM card that carries the data needed for it to work with a given service provider. In many ...

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