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House OKs on final reading bill unlocking mobile devices

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House OKs on final reading bill unlocking mobile devices
The Consumer Protection on Mobile Communication Service Contract allows consumers to have their mobile wireless devices unlocked prior to lock-in period expiration

MANILA, Philippines– The House of Representatives has approved on third and final reading a proposed bill seeking to allow consumers to have their mobile wireless devices unlocked prior to the expiration of the lock-in period.

The House approved on final reading House Bill No. 5790, or the proposed “Consumer Protection on Mobile Communication Service Contract,” the House of Representatives said in a press statement on Monday, June 22. Its principal author is Cavite 1st District Representative Francis Gerald Abaya.

Abaya said the practice of mobile phone and data service providers of locking devices as part of a wireless contract is one of the sources of consumer frustration with telecommunication services, dominated by the  Philippine Long Distance Telephone Company (PLDT) and Globe Telecom, Incorporated.

Abaya,  who is vice chairman of the House committee on information and communications technology, said that while consumers can choose third parties to have their mobile devices unlocked, this would normally void the warranty of the mobile device.

“Device locking makes it difficult for consumers to take advantage of the competitive offers available in the market. Furthermore, it limits the ability of the consumers to avoid roaming charges while travelling abroad, because it prevents them from using another service provider’s service,” Abaya said.

Consumer choice

The measure refers to lock-in period as the term of contract between the service provider and the consumer, wherein the consumer must maintain a monthly subscription at an agreed period to the exclusion of other service providers.

The bill stated that a mobile communication and data network service unlock the communication device or give consumers the means to unlock the device at the rate provided by the service provider or any of its designated service agent, upon request, prior to the expiration of the lock-in period of the device.

After the lock-in period, unlocking of the device shall be free and automatic, the bill stated.

For unsubsidized devices, the device shall be unlocked upon purchase, the bill further stated.

The bill also included provisions for fine of P5,000 ($110.79) to P500,000 ($11,076.96), upon the discretion of the court, on violators of the act. Likewise, it provides for the suspension of the operation of erring dealers, retailers or sellers.

The Department of Trade and Industry, in coordination with the National Telecommunications Commission, and other concerned agencies shall promulgate the implementing rules and regulations 90 days after the effectivity of the act.

The bill’s co-authored are Representatives Joel Roy Duavit (1st District Rizal); Mariano Michael Velarde Jr (BUHAY party list); Xavier Jesus Romualdo (Camiguin); Jonathan Dela Cruz (ABAKADA party list); Delphine Gan Lee (AGRI party list); Monique Yazmin Lagdameo (1st District Makati City), Terry Ridon (KABATAAN party list), and Antonio Tinio (ACT TEACHERS party list).

In February, Justice Secretary Leila de Lima called on telecommunications providers to immediately install a kill switch software in mobile phones to protect the security and privacy of users and to not wait for the passage pending proposed measures such as HB 4511 and House Resolution 93.

HB 4511 and House Resolution No. 93 are seeking to require all network service providers to install the software on mobile phones.

The kill switch is an emergency shutdown mechanism, often activated when a device cannot be shut down normally, such as in the case of loss or theft. In the case of cellular phones, a kill switch could either render a device inoperable, wipe the data, activate geolocation, or a mix of specific protective actions for users. (READ: DOJ to telcos: Have phone kill switches to prevent theft)

Telecommunication firms have argued that the kill switch issue for mobile phones is also the responsibility of phone manufacturers, and requires more study in the Philippine context. (READ: Telcos say phone kill switches need more study, maker support) – Rappler.com

$1 = P45.08

Locked, chained mobile phone image via Shutterstock

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