Unlocking Prepaid Cell Phones - Should it Be Legal?
July 13, 2008 – 9:21 pmUnlocking cell phones via installed phone manufacture software is causing a stir and and setting off lawsuits in the telecom industry, but is it unethical? Many cellular providers are losing profits due to prepaid cell phones being bought and unlocked to work on competing networks.
The cell phone service providers sell the in-store prepaid phones at a profit loss in the hopes of gaining back revenue on the purchase of additional minutes down the road. When they are bought and resold as unlocked phones obviously this doesn’t happen.
In the wireless service provider’s lawsuits the claim is the phone/software is their property that any company engaing in these unlocking practices are violating the law. It is being argued though that the actual software and phone is the property of the manufacture’s opposed to the service provider’s.
It seems to me, that if the big wireless providers want to hit these companies they should look no further than to their contracted buddies at Samsung, Motorola, etc. Of course though this may not be as simple as said. The manufacture would have to start putting laws and statements in with the packaged phones along with the manual increasing cell phone costs. Probably no easy answer for the wireless companies but rest assured it can impact our consumer/investor dollar down the road if the practice gains momentum.
So far, it seems to me nothing illegal is being done, however ethical standards are a major issue.
News: http://ap.google.com/article/ALeqM5goKpNJ9cR7dhCnjfSE7×3iv2kbnwD91T5IQ00
