UNinnovate
Early Christmas Present: Now it?s legal to unlock your cellphone
November 23rd, 2006 | Category: Uncategorized
Most cell phones in the United States are purchased as part of a service plan. The phone itself is cheap or free, but it must be bought as part of a one-year or two-year service contract. Phones can also be purchased separately, but are often hundreds of dollars more expensive then the phones that come with service plans. This is because phone companies take a loss on the phone up front and hope to make up that loss over the life of the contract in monthy fees.
Nearly all of the phones purchased as part of a service plan (and even some that are purchased separately) are SIM locked to only work with that phone companies? network. The phone?s software will reject SIM cards from competing phone networks. Phones bought from T-Mobile only work with T-Mobile, phones bought from Cingular only work with Cingular, etc. This way the phone company can be certain that a customer is stuck and they will make back their investment.
The problem is that even when the contract is complete, many phone companies will not unlock the phone or will only unlock it through a complicated or poorly advertised process. This is designed to make it less it appealing for customers to switch services because they will have to purchase new phones, but it also causes headaches for frequent travellers or people who have relocated to a new country. For example, a U.S.-based traveller in China must pay absurdly high international rates to use their U.S. cell phone within China. If the phone was unlocked, they could pick up a new Chinese SIM card for a few dollars and have local phone service at a fraction of the price of international service.
Like all software locks, SIM locking can be broken and often is. However, this is a grey market or black market activity in the U.S. Breaking the SIM locks involves modifying the phone?s internal software. Phone companies leverage copyright circumvention restrictions in the DMCA that make it illegal to sell or use a device that circumvents copyright. In effect, it is not legal for a user to modify their own cellphone even if they own it because it would potentially violate the copyright of the phone?s software.
Yesterday, the Library of Congress announced six new exceptions to DMCA rules. Among those was the declaration that breaking SIM locks will not be considered a DMCA violation starting on Monday:
5. Computer programs in the form of firmware that enable wireless telephone handsets to connect to a wireless telephone communication network, when circumvention is accomplished for the sole purpose of lawfully connecting to a wireless telephone communication network.
Library of Congress Rulemaking Statement
This has the potential to legitimize the shady market of cell phone unlockers. It also has the potential to change how cell phone companies do business. If awareness of these rules spreads and legitimate cell phone unlocker services appear, the current cell phone business model might not make as much sense. It is also likely to further frustrate ?pay as you go? cell phone providers who have been trying to stop resellers who purchase their phones and then sell them overseas for a profit.
Early Christmas Present: Now it?s legal to unlock your cellphone
November 23rd, 2006 | Category: Uncategorized
Most cell phones in the United States are purchased as part of a service plan. The phone itself is cheap or free, but it must be bought as part of a one-year or two-year service contract. Phones can also be purchased separately, but are often hundreds of dollars more expensive then the phones that come with service plans. This is because phone companies take a loss on the phone up front and hope to make up that loss over the life of the contract in monthy fees.
Nearly all of the phones purchased as part of a service plan (and even some that are purchased separately) are SIM locked to only work with that phone companies? network. The phone?s software will reject SIM cards from competing phone networks. Phones bought from T-Mobile only work with T-Mobile, phones bought from Cingular only work with Cingular, etc. This way the phone company can be certain that a customer is stuck and they will make back their investment.
The problem is that even when the contract is complete, many phone companies will not unlock the phone or will only unlock it through a complicated or poorly advertised process. This is designed to make it less it appealing for customers to switch services because they will have to purchase new phones, but it also causes headaches for frequent travellers or people who have relocated to a new country. For example, a U.S.-based traveller in China must pay absurdly high international rates to use their U.S. cell phone within China. If the phone was unlocked, they could pick up a new Chinese SIM card for a few dollars and have local phone service at a fraction of the price of international service.
Like all software locks, SIM locking can be broken and often is. However, this is a grey market or black market activity in the U.S. Breaking the SIM locks involves modifying the phone?s internal software. Phone companies leverage copyright circumvention restrictions in the DMCA that make it illegal to sell or use a device that circumvents copyright. In effect, it is not legal for a user to modify their own cellphone even if they own it because it would potentially violate the copyright of the phone?s software.
Yesterday, the Library of Congress announced six new exceptions to DMCA rules. Among those was the declaration that breaking SIM locks will not be considered a DMCA violation starting on Monday:
5. Computer programs in the form of firmware that enable wireless telephone handsets to connect to a wireless telephone communication network, when circumvention is accomplished for the sole purpose of lawfully connecting to a wireless telephone communication network.
Library of Congress Rulemaking Statement
This has the potential to legitimize the shady market of cell phone unlockers. It also has the potential to change how cell phone companies do business. If awareness of these rules spreads and legitimate cell phone unlocker services appear, the current cell phone business model might not make as much sense. It is also likely to further frustrate ?pay as you go? cell phone providers who have been trying to stop resellers who purchase their phones and then sell them overseas for a profit.
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