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NTC orders unlocking of phones after network ‘lock-in’ period

Metro Manila (CNN Philippines, June 5) — Mobile phone users will soon be allowed to convert to an open line from a single-network service.

In a May 31 memorandum, the National Telecommunications Commission (NTC) released guidelines for the unlocking of devices which were previously limited to one network.

At present, Filipinos can buy phones through mobile plans offered by telecommunication firms Smart and Globe. However, that arrangement restricts the use of the phone to one mobile network.

The NTC said phone owners “should have the option of changing between compatible wireless service providers” so that they will have greater freedom to choose their network. The same process will also push networks to innovate in order to keep or attract subscribers.

NTC’s new rules implement a December 2018 order of the Department of Information and Communications Technology that requires the unlocking of phones after the lock-in period specified in customer contracts.

All requests to unlock the service lines of phones and similar gadgets must be addressed within two business days. Otherwise, providers need to explain why the device cannot be unlocked or why it is taking longer to process.

Telco companies must unlock mobile phones of their postpaid subscribers upon request, provided that the customer is in “good standing” and has completed the service contract. Clients have the option to pay an early termination fee before requesting to unlock their phones.

For prepaid customers, telcos must unlock phones by request, provided that “usage requirements or agreed terms and conditions” are met.

For locked devices, Smart and Globe will be required to notify customers when the phones can be unlocked. They are also given the option to automatically open the service lines of these gadgets “without additional fee.”

The rules take effect June 18, or 15 days after it was published on a newspaper last Monday.

The NTC has named the Mindanao Islamic Telephone Company, Inc. as the third major player in the telecommunications market, which is set to roll out its services by late 2020.

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