NTC mandates telcos to free up mobile phones after ‘lock-in’ period

The National Telecommunications Commission (NTC) has mandated telcos to free up mobile phones or devices once the “lock-in” period lapses, allowing their subscribers greater freedom to switch from one service provider to another.

National Telecommunications Commission releases guidelines on unlocking mobile phones and devices to allow users to utilize their cellphones from one network to another. | @Ted_Cordero pic.twitter.com/eZZCBh5omD

— GMA News (@gmanews) June 5, 2019

NTC Memorandum Circular 01-05-2018, signed on May 31, provided the rules and regulations for public telecommunications entities (PTEs) on unlocking mobile phones and devices after a customer complied with the terms and conditions of a subscription agreement with service providers that offered the devices free-of-charge or at subsidized cost provided that the device is used only on the provider’s network for a fixed lock-in period.

The NTC said unlocking mobile phones and devices gives customers greater freedom and flexibility while increasing incentives for service providers to improve and innovate.

Telcos Globe Telecom Inc. and Smart Communications Inc. offer postpaid deals, which allow customers to get mobile phones for free or at lower cost as long as the device is used on the provider’s network within the lock-in period.

“Mobile phones and device locks are meant to ensure that devices can only be used on the networks of specific providers,” the NTC said.

Under the circular, NTC mandated telcos to post on their website. “… clear, concise, and readily accessible policy on mobile phone or device unlocking.”

PTEs, upon request, must unlock mobile phones or provide necessary information how to unlock devices for customers and former customers in good standing after the fulfillment of the applicable postpaid service contract, device financing plan, or payment of an applicable early termination fee.

“PTEs that lock devices shall clearly notify customers that their devices are eligible for unlocking at the time when their devices are eligible for unlocking or automatically unlock devices remotely when devices are eligible for unlocking, without additional fee,” the circular read.

“Notice to prepaid customers may occur at point of sale, at the time of eligibility, or through a clear and concise statement of the policy on the PTE’s website,” the circular read.

Eligible mobile phones or devices must be unlocked within two business days.

PTEs may also initiate with the original equipment manufacturer to unlock the phone or device, or provide an explanation why the device does not qualify for unlocking or why it reasonably needs more time to process the request.

PTEs that fail to comply with their obligation “shall be a cause for the imposition of the applicable penalties in subsisting laws, rules, and regulations.”

The circular takes effect 15 days after publication in a newspaper of general circulation and the University of the Philippines Law Center haven furnished with three certified true copies. —VDS, GMA News