Legislation could force SIM-free, no-contract option from all carriers




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Ed Markey - not impressed by early termination feesThanks to a proposal being pushed by Democratic congressman Ed Markey, US cellphone buyers could soon have the right to buy any handset their carrier offers at the SIM-free price; the draft legislation demands that networks “shall offer to consumers the opportunity to purchase subsidy-free wireless customer equipment”.  It’s a move that, if it became law, would see AT&T forced to offer the iPhone SIM-free and unlocked, and without the obligation to sign up to a new, two-year contract with the carrier. 

Markey also wants networks to set out details of penalties, rates, taxes and plan details in a “clear, plain, and conspicuous manner”, offer more detailed mapping of coverage and provide a 30-day cooling-off period to cancel a new contract without penalty.  Controversial early termination fees would be charged at a pro-rata rate depending on duration of the contract, rather than fixed amounts.

Carriers themselves have taken a decidedly cold view of the proposal, with the CTIA Wireless Association speaking on their behalf during discussions of the bill today.  They were expected to point to the voluntary steps they’ve taken toward issues such as increasing SIM-free options, prorating termination fees and simplifying contracts.

The 27-page draft is available to download [pdf link]

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