Voiding lock-in period for mobile plans must benefit both telco and subscriber

The proposed law seeking to unlock postpaid mobile phone subscriptions must balance the interests of consumers and service providers, the country's telecommunications regulator said. 

 

The House of Representatives has approved on third and final reading House Bill 5790, to give consumers an option to unlock their devices even before the service contract expires – usually after two years. 

 

The proposed "Consumer Protection on Mobile Communication Service Contract" requires telecommunications companies to unlock mobile devices or provide the means for doing so upon the request of subscribers.

 

The measure also requires telcos to unlock such devices for free as soon as the lock-in period ends. Unsubsidized devices must be unlocked once a subscriber makes the purchase.

 

The National Telecommunications Commission has supported the bill from the start because it seeks to protect consumers, Director Edgardo Cabarios told GMA News Online Wednesday.

 

But prohibiting telcos from imposing lock-in periods for subsidized phones even before recovering the cost could discourage companies from offering mobile devices at affordable payment terms as part of the postpaid subscriber plan, Edgardo said.

 

"So iyon and titignan natin na hindi ma-shortchange ang service providers. We will come up with the implementing rules... Makikita doon how we can balance the interest of consumers and service providers," Cabarios said.

 

The implementing rules and regulations could include the computation of how much a consumer would have to pay to unlock a device prior to the expiration of the service contract, Cabarios added.

 

Globe Telecom Inc. is still studying the proposed measure, Yoli Crisanto, the company's senior vice president, said in a text message to GMA News Online.

 

As for rival Smart Communications Inc., officials are still to discuss the House bill among themselves, said Wo Rosete, senior manager for external relations. – VS, GMA News