FCC rule would make carriers unlock all phones after 60 days

Stylized image of the FCC seal over the agency's headquarters.

Image Credits: Bryce Durbin / TechCrunch

The FCC wants to make it significantly easier for consumers to unlock their phones from their carriers, proposing that all devices must be unlockable just 60 days after purchase. How this will mesh with current plans and phone-buying trends, however, is something the agency is hoping to learn before putting such a rule into effect.

Mobile phones purchased from a carrier are generally locked to that carrier until either the contract is up or the phone is paid off. But despite improvements to the process over the years (unlocking was flat-out illegal not long ago), it still isn’t quite clear to all consumers when and how they can unlock their phone and take it to the carrier (or country) of their choice.

To be clear, this is not about opening up your phone using a face, fingerprint or password, but changing settings in its software to allow it to work with different mobile networks.

FCC Chairwoman Jessica Rosenworcel announced the Notice of Proposed Rulemaking, or NPRM, in a press release Thursday. “When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice,” she wrote. “That is why we are proposing clear, nationwide mobile phone unlocking rules.”

Specifically, the release says, carriers would simply have to provide unlocking services 60 days after activation. A welcome standard, but it may run afoul of today’s phone and wireless markets.

For instance, although the dreaded two-year contract is no longer forced on most consumers, many still opt for them to lock in the price and get other benefits. And perhaps more to the point, the phones themselves are often paid for in what amount to installment plans: You get a phone for “free” and then pay it off over the next few years.

The NPRM is the stage of FCC rulemaking where it has a draft rule but has not yet solicited public feedback. On July 18, the agency will publish the full document and open up commentary on the above issues. And you can be sure there will be some squawking from mobile providers!

Not knowing the specifics of the proposed rule, we can’t be sure how it would mix with these common pay-over-time details. But unlocking a phone doesn’t free someone from needing to pay off the device — they can just use it on other networks if they want. And if a carrier lets you buy a phone outright from it but locks it to the bands for six months or a year out of sheer greed, this would offer an early exit.

As Rosenworcel said, the point of the rule is to offer consistency and transparency: a simple, national rule from regulators setting a reasonable limit on how and whether carriers can lock down devices. We’ll know more in July when the full NPRM is published.

Read more on TechCrunch:

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FCC rule would make carriers unlock all phones after 60 days

Stylized image of the FCC seal over the agency's headquarters.

Image Credits: Bryce Durbin / TechCrunch

The FCC wants to make it significantly easier for consumers to unlock their phones from their carriers, proposing that all devices must be unlockable just 60 days after purchase. How this will mesh with current plans and phone-buying trends, however, is something the agency is hoping to learn before putting such a rule into effect.

Mobile phones purchased from a carrier are generally locked to that carrier until either the contract is up or the phone is paid off. But despite improvements to the process over the years (unlocking was flat-out illegal not long ago), it still isn’t quite clear to all consumers when and how they can unlock their phone and take it to the carrier (or country) of their choice.

To be clear, this is not about opening up your phone using a face, fingerprint or password, but changing settings in its software to allow it to work with different mobile networks.

FCC Chairwoman Jessica Rosenworcel announced the Notice of Proposed Rulemaking, or NPRM, in a press release Thursday. “When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice,” she wrote. “That is why we are proposing clear, nationwide mobile phone unlocking rules.”

Specifically, the release says, carriers would simply have to provide unlocking services 60 days after activation. A welcome standard, but it may run afoul of today’s phone and wireless markets.

For instance, although the dreaded two-year contract is no longer forced on most consumers, many still opt for them to lock in the price and get other benefits. And perhaps more to the point, the phones themselves are often paid for in what amount to installment plans: You get a phone for “free” and then pay it off over the next few years.

The NPRM is the stage of FCC rulemaking where it has a draft rule but has not yet solicited public feedback. On July 18, the agency will publish the full document and open up commentary on the above issues. And you can be sure there will be some squawking from mobile providers!

Not knowing the specifics of the proposed rule, we can’t be sure how it would mix with these common pay-over-time details. But unlocking a phone doesn’t free someone from needing to pay off the device — they can just use it on other networks if they want. And if a carrier lets you buy a phone outright from it but locks it to the bands for six months or a year out of sheer greed, this would offer an early exit.

As Rosenworcel said, the point of the rule is to offer consistency and transparency: a simple, national rule from regulators setting a reasonable limit on how and whether carriers can lock down devices. We’ll know more in July when the full NPRM is published.

Read more on TechCrunch:

HubSpot says it’s investigating customer account hacksDEI? More like ‘common decency’ — and Silicon Valley is saying ‘no thanks’Startups scramble to assess fallout from Evolve Bank data breachRemote access giant TeamViewer says Russian spies hacked its corporate network

Startups scramble to assess fallout from Evolve Bank data breach

Stylized image of the FCC seal over the agency's headquarters.

FCC rule would make carriers unlock all phones after 60 days

Stylized image of the FCC seal over the agency's headquarters.

Image Credits: Bryce Durbin / TechCrunch

The FCC wants to make it significantly easier for consumers to unlock their phones from their carriers, proposing that all devices must be unlockable just 60 days after purchase. How this will mesh with current plans and phone-buying trends, however, is something the agency is hoping to learn before putting such a rule into effect.

Mobile phones purchased from a carrier are generally locked to that carrier until either the contract is up or the phone is paid off. But despite improvements to the process over the years (unlocking was flat-out illegal not long ago), it still isn’t quite clear to all consumers when and how they can unlock their phone and take it to the carrier (or country) of their choice.

To be clear, this is not about opening up your phone using a face, fingerprint or password, but changing settings in its software to allow it to work with different mobile networks.

FCC Chairwoman Jessica Rosenworcel announced the Notice of Proposed Rulemaking, or NPRM, in a press release Thursday. “When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice,” she wrote. “That is why we are proposing clear, nationwide mobile phone unlocking rules.”

Specifically, the release says, carriers would simply have to provide unlocking services 60 days after activation. A welcome standard, but it may run afoul of today’s phone and wireless markets.

For instance, although the dreaded two-year contract is no longer forced on most consumers, many still opt for them to lock in the price and get other benefits. And perhaps more to the point, the phones themselves are often paid for in what amount to installment plans: You get a phone for “free” and then pay it off over the next few years.

The NPRM is the stage of FCC rulemaking where it has a draft rule but has not yet solicited public feedback. On July 18, the agency will publish the full document and open up commentary on the above issues. And you can be sure there will be some squawking from mobile providers!

Not knowing the specifics of the proposed rule, we can’t be sure how it would mix with these common pay-over-time details. But unlocking a phone doesn’t free someone from needing to pay off the device — they can just use it on other networks if they want. And if a carrier lets you buy a phone outright from it but locks it to the bands for six months or a year out of sheer greed, this would offer an early exit.

As Rosenworcel said, the point of the rule is to offer consistency and transparency: a simple, national rule from regulators setting a reasonable limit on how and whether carriers can lock down devices. We’ll know more in July when the full NPRM is published.

Read more on TechCrunch:

HubSpot says it’s investigating customer account hacksDEI? More like ‘common decency’ — and Silicon Valley is saying ‘no thanks’Startups scramble to assess fallout from Evolve Bank data breachRemote access giant TeamViewer says Russian spies hacked its corporate network

Startups scramble to assess fallout from Evolve Bank data breach

Coverdash team, business insurance

Coverdash gathers insurance’s biggest carriers so SMBs can get coverage in minutes

Coverdash team, business insurance

Image Credits: Coverdash

When Coverdash, which offers commercial insurance products for startups, tripled the number of embedded distribution partners to over 100 in the past year, CEO Ralph Betesh had a decision to make.

He could either keep rolling toward profitability, or raise a venture capital round — which the commercial insurance provider didn’t really need — so that it could onboard bigger partners faster.

“More big partners kept coming and closing with us, pushing to get on our roadmap,” Betesh told TechCrunch. “We discussed slowly adding these partners, but thought we might lose them. On the other hand, everyone told us this might be the most challenging environment for a Series A in the last four years.”

Plus, it wasn’t really that long ago that Coverdash had raised capital. TechCrunch last profiled the company in early 2023 when it raised $2.5 million in seed funding. At that time, the company had recently launched with 35 distribution partners.

Betesh founded the company with David Vainer and Avery Rubin in 2022. Coverdash offers small businesses, e-commerce merchants and freelancers the ability to buy business insurance in areas like business owner’s policies, cyber and worker’s compensation.

Distribution partners, like payroll providers, banks and vertical SaaS platforms, embed Coverdash’s insurance tool into their platforms. Businesses then answer a few questions, select a policy and get coverage in minutes.

Bling Capital-backed Coverdash unveils its embedded, digital insurance for small businesses

“Our focus was bringing the embedded customer, or direct consumer customer, options from the biggest names in insurance and allowing you to choose what’s best for you,” Betesh said. “That approach also insulates us from some of the carrier-specific nuances. For example, if one carrier won’t take on the risk, we have a bunch of other options for you, which enables us to get you better pricing and better coverage for that price. That’s really powerful to the end customer that we focus on.”

In the past year, Coverdash added a management liability product specifically geared toward startups that either have a board or are raising capital. That comes with some requirements, like having liability insurance for board directors and company officers and other management, Betesh explained.

That new product resulted in some big business coming Coverdash’s way, including new partners and growth across the board. From increasing its employee workforce five-fold to that tripling of its embedded distribution partnerships to 30% month over month growth in customers. Betesh did not get specific about revenue other than to say it grew “exponentially” over the past year as a result of the partnership and customer growth.

Ultimately, Betesh and his co-founders opted to go the venture capital route, raising $13.5 million of Series A funding. New investor Nyca Partners led the round and joined existing investors, including Bling Capital, AXIS Digital Ventures, Tokio Marine Future Fund, Expansion VC and Cameron Ventures.

“We were ready for it,” Betesh said. “It all kind of fell into place really quickly, and in over two weeks, we had offers from multiple firms. We were really fortunate. What helped us was the partnerships and what we’ve been able to put forth in such a short amount of time, as well as our focus on profitability as soon as we can.”

In insurtech, too, business models aren’t one-size-fits-all