FCC proposes 60-day cellphone unlocking rule

July 18 (UPI) -- The Federal Communications Commission on Thursday proposed a rule requiring all mobile carriers to unlock customers' phones within 60 days of activation.

The agency in a statement said the proposal would establish a "clear and uniform" set of rules for all service companies with the goal of making it easier for customers to switch their service provider.

"Mobile phone unlocking can increase consumer choice and competition in the mobile service provider marketplace," the statement read. "Updated unlocking rules would give consumers more flexibility when switching service providers, increase competition among service providers, and reduce customer confusion by applying the same unlocking rules to all service providers."

The proposed 60-day unlocking rule will go through a comment period, during which the FCC will seek comments on the rule and whether it should be applied to existing service contracts or future contracts.

The FCC also will weigh whether a 60-day rule will impact service company incentives to offer discounted phones for postpaid or prepaid service plans and if the rule would benefit new and smaller providers and resellers by making more phones available in the secondary market.

Some cellphones contain software that "locks" them to the provider's network and prevents them from being used on different wireless networks even if they are technologically compatible.

Phone companies currently impose their own unlocking requirements . One carrier might automatically unlock a device after the customer meets certain conditions, while another might send instructions on how to unlock a device if the customer requests them.

While the unlocking process varies from company to company, CTIA, the trade association representing the U.S. wireless industry, in 2014 established a set of standards , which includes full policy disclosure, notifying customers when their devices are eligible for unlocking and responding to unlocking requests within two business days.