New democratic proposal may allow unlocked iPhones, cellphones

Hold the presses! Apparently a new proposal is under review in the U.S. by the House of Representatives that may just be the people’s ticket to purchasing unlocked iPhones from Apple and AT&T. The proposal is supposedly adopting the case observed when European service carrier T-Mobile was forced to sell iPhones without a T-Mobile-tied contract, though at more than twice the price of the MSRP. Read on to know more.

It appears the notion of selling phones uncoupled to a service contract finally struck the minds of the U.S. legislative body. The House of Representatives is currently reviewing a proposal sponsored by Democratic Representative Ed Markey of Massachusetts that will grant mobile users an opportunity to buy a cellular phone – with or without ties to a service contract.

In fact, the current draft of the legislation entitled “Wireless Consumer Protection and Community Broadband Empowerment Act” says that mobile providers will have to “offer to consumers the opportunity to purchase subsidy-free wireless customer equipment.” The 27-page drafted bill was heard by the Congressman’s subcommittee, the telecommunications and Internet panel, earlier this morning.

The legislation has become the second proposal to venture into mobile territory – the first being proposed in the Senate last year. This one, however, is meant to deal with the inflexible and somewhat crippling dealings with mobile customers and mobile providers. It has also been criticized to be more sweeping, and thus more significant, and is considered to align itself in the interest of consumer protection.

But unlike the case with Germany’s T-Mobile – where the provider subsequently gave way to court ruling and sold unlocked iPhones at US$ 1460 per – the legislation will also force U.S.-operating providers to sell such equipment at no extra cost. And as with the case of customers who chose a contract phone, the proposal aims to enforce a uniform contract cancellation period.

The essential idea is that the customer will be allowed to cancel a contract coupled to the phone purchased within 30 days for any reason whatsoever, and disconnection fees will have to be prorated. The proposed bill will even aid potential mobile customers in service selection by pressing mobile carriers to provide accurate and detailed coverage maps.

Image excerpt of service coverage map – courtesy of Cingular

But while it’s under review, there aren’t a lot of happy cheers from the industry. A lobbyist for the Cellular Telecommunications & Internet Association (CTIA) – an organization representing most of the wireless providers in the country – appeared in the hearing earlier today and gave the wireless industry’s views of the proposal.

We’ll keep you updated as we get more information. But for now, you may rest your eyes upon the proposed bill in portable electronic format – and all 27 pages of it – through the source link provided below.