If this BusinessWeek report is accurate, it looks like MetroPCS might not be the only company to offer a phone unlocking service. Olga Kharif learns that Houdinisoft, the company providing Metro with the unlocking/reflashing services, is in talks with a number of other carriers to offer a similar program. This would be a boon for many Americans who are sick of their current provider, but wish to not purchase a new handset. GSM will still be GSM and CDMA will still be CDMA, but it might get a bit easier to migrate among a technology.
With the government looking to take the reins on early termination fees, though, unlocking might not seem as attractive to major carriers as it would if they were allowed to enforce their current programs. Normally, at the end of the two-year contract period, a customer’s phone is outdated, and they will pick up a new one for a subsidized price. This further extends their contract. So perhaps a customer will be less likely to have the phone unlocked/reflashed on another network for want of a new model.
However, if the government steps in (though it doesn’t seem likely they’ll actually do anything) and regulates ETFs, carriers might be less inclined to offer unlocking/reflashing services. Customer retention would be a bit more difficult, and they’d need to retain any advantage possible. Then again, if one carrier takes the leap, it would be tough for the other majors to not follow suit.
For now, though, we’ll just have to live under the old rules. However, if you are on AT&T or T-Mobile and wish to switch to the other, we strongly recommend you get your phone unlocked and avoid the burden of a two-year contract with a subsidized new phone.
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