FCC Reaches Agreement With Tracfone To Unlock Mobile Phones & Provide Other Consumer Benefits

The Federal Communications Commission's Enforcement Bureau has reached a settlement with TracFone Wireless, Inc. to provide unlocking of TracFone handsets to millions of American consumers. The Bureau's investigation found that TracFone violated agency rules by improperly certifying that it would unlock phones for its customers enrolled in the FCC's Lifeline program. To settle this violation, the company has agreed to transition all its phones to be unlockable, thus allowing both Lifeline and non-Lifeline customers the freedom to choose to use their devices on other networks. In the interim, while TracFone is transitioning to unlockable phones, eligible TracFone customers will be entitled to other benefits under the settlement.

Eligible customers can contact the company to receive a new unlocked handset, credit for a handset upgrade, or a partial cash refund in exchange for their locked handset. The FCC estimates that at least 8 million TracFone customers could benefit from the settlement. With an average benefit of $10 per handset, the value of this settlement to consumers is expected to be in the range of $80 million. In addition, the company will provide a projected offset of $3.2 million to the Lifeline program tied to how quickly its unlocking program becomes active.