The recent report of Chile implementing the mandatory unlocking of all phones that are sold in the country this month got me thinking if this is possible in the Philippines. Of course it’s possible but I doubt it will be happening anytime soon.
The current norm is that all mobile phones and most mobile devices (the iPad 2 3G isn’t locked with Globe) being sold and provided by local telcos are given out to subscribers locked for the entire contract period.
In other countries, like Hong Kong or Singapore, handsets sold by telcos are required to be unlocked. Despite that, you wil still see gadget stores in Mongkok, HK selling locked phones although at a much cheaper price than the international versions.
The rationale behind locked phones is that since the carrier is the one subsidizing the price of the handset, they wanted their subscribers to use the device on their network and recoup the amount from usage of the plan or credits. The same is true to prepaid kit plans.
But in a country like the Philippines where prepaid users outnumber postpaid users 5 to 1, Filipinos tend to get their phones elsewhere and just buy a Php40 SIM card in the nearest sari-sari store. That means only 20% or less of the handsets are locked to their respective networks.
In some instances, having a handset locked ot a network is often used as a marketing tool. This is a huge deal especially when specific handsets are very popular — like the iPhone 3G or Galaxy S on Globe or the Nokia N9 or the Galaxy Note on Smart. In the early years of the iPhone in the Philippines, every time you see someone using an iPhone 3G, you’d definitely think they are Globe subscribers. These folks are like walking billboards — free advertising.
If and when mandatory unlocked phones be implemented in the Philippines, we might see those postpaid plans and prepaid kits to end up much more expensive than what they are right now. That’s the most likely scenario.
However, I believe that once your contract has expired with your carrier (normally after 24 months), you can now demand that your handset be unlocked (although I don’t think a lot of people know about this). This is why carriers often provide additional incentives to renew contracts or offer retention plans. (Update: Just got off the phone with one of the reps from a local telco and they explained the unlocking is not done on their end but on the manufacturers side.)
What I think is a more important move is the number portability scheme which allows a subscriber to bring their number to any carrier when they switch or move between telcos.
Update: After talking to both reps of Smart and Globe, both clarified that the devices shipped to the by the manufacturers are already locked to their network. It’s up to the individual subscriber if they want the device unlocked on their own accord, whether or not the contract has expired or not. Unlocking will need to be done by the manufacturer or by 3rd party.
i say duck this shot!
For more info on various SIM Locking practices:
http://en.wikipedia.org/wiki/SIM_lock
I stayed in Melbourne for a year and noticed that mas maraming locked phones kesa unlocked. Tapos mas mahal if you get an unlocked phone kasi parang binayaran mo na rin yung pagpapaunlock ng phone. What I liked most is yung may choice ang subscriber kung anong network pipiliin nya without changing his/her mobile number. So nakakalipat sya ng network pero same number pa rin gamit nya. Sana ganun din dito ;)
This won’t happen until someone starts a petition to NTC and the carriers.
@Sir Abe: Why not start a petition yourself and gather 1 million signs?? :)
… probably not-so-bright-idea… Abe / Yuga will lose his perks and advertisers / sponsors … No more income / freebies / gadgets … In the corporate world, fighting for the average Juan de la Cruz is suicide … sticking your neck out for others is a curse … being a pro gets you big bucks … Right, Abe / Yuga? ;-)
… probably not-so-bright-idea… Abe / Yuga will lose his perks and advertisers / sponsors … No more income / freebies / gadgets … In the corporate world, fighting for the average Juan de la Cruz is suicide … sticking your neck out for others is a curse … being a pro gets you big bucks … Right, Abe / Yuga?
I suddenly remembered my experience with having SUN and Sony Ericsson unlock my phone. They were just pointing fingers at each other, it was frustrating.
Hi yuga, where did you get the “the Philippines where prepaid users outnumber postpaid users 5 to 1,” interesting kasi yung study na yan, gusto ko malaman..Thanks
Annual Investor Reports of PLDT & Globe.
@yuga Thanks sa reply , may paggagamitan pang back-up kaming information,articles and reports.
You need a law from Congress or an NTC directive to be able to have mandatory unlocked phones after the contract period. Otherwise, telcos will not initiate unlocking of phones.
will unlocking void the warranty?
OBVIOUSLY YES. HALER
I guess it depends. Take Apple and their iPhones for example. In some countries, there is such a thing as “Authorized Unlocking”. :)
In the PH though it’s a different story. In Globe’s case, they do not allow for you to remove the network lock. Although there is no mention of the penalty for unlocking your device (like voiding the warranty). But I guess that should be expected.
“G. Subscriber acknowledges that the Device he/she receives in connection with his/her all-new MY SUPER PLAN Subscription is locked to GLOBE’s network. The Subscriber shall not have such lock removed or disabled.”
well by the time your contract expires, Im pretty sure your warranty did too. (most warranties are only due a year after the handset was bought)
with the proliferation of phone unlocking services in the phils for 100-500 pesos, it might be moot. unless one can truly invent a unhackable lock
^ naka-line pala sa starhub. pwede kaya ang smart sim or need ipa-unlock na lang? thanks!
hi yuga, question lang. may iphone 4s kasi ako galing singapore, naka-line sa singtel nung binili, sinubukan ko gamitin ang globe sim pero hindi pa rin ma-detect ng iphone. sa tingin mo naka-lock yun sa singtel? or pwede smart sim ang gamitin ko kasi di ba partner sila ng singtel? maraming salamat!
THOSE ARE THE SIGNS. OBVIOUSLY IT IS LOCKED. DIDN’T YOU ASK OR RESEARCH BEFORE YOU BUY SINGTEL PHONE UNDER A CONTRACT. HAD IT NEVER COME INTO YOUR MIND IF IT WILL WORK IN LOCAL NETWORK OPERATORS HERE.
Bunny, mukhang locked pa yung phone mo. A colleague of mine bought an iphone overseas din and he had to unlock it pa. I’m not sure how pero ang sabi lang sa kanya nung binilhan nya is to update yung iphone using itunes then to wait for about 6 hours before niya pwede gamitan ng local sim. Try niyo tawagan yung Singtel mismo :)
Sir Yuga, ask ko lang sana.
1. say an Iphone 3Gs kahit locked sa globe, so kahit hindi pa expired yung contract you can go to Apple Store to ask them to unlock the device for you? AM I getting this wrong? Please Sir Yuga/Anyone clarify.
2. Will the manufacturer do this for free or not?
JJJJ, i think hindi allowed yung Apple Store. My sister owns an iPhone and it’s Globe locked. For some reason may recurring issue with the iPhone’s mic so she contacted Power Mac para sana ipaayos pero ang sabi sa kanya e dalhin daw sa Globe kasi hindi daw sila authorized magayos ng iPhone. Ito yung exact words nung representative ng Power Mac: “iPhone service support covering hardware and/or software issues are tied up with the appointed carrier, Globe Telecommunications. This applies to all post-paid and pre-paid iPhones purchased from Globe and Apple Authorized resellers in the Philippines.”
Hope this helps!
I read somewhere that only the telco’s can initiate an “unlock.” What’s unique with the iPhone is that ONLY the telco (where it is locked) initiates the unlock request, sending it to Apple.
Once the request has been approved, connecting your iPhone to iTunes will display a congratulatory “now unlocked” message.
What if you got a prepaid unit from them? When will they unlock it?
If it was a postpaid, will they really unlock it?
Never heard of anyone availing of this service. I’d like to try this out and blog about it.
Gayahin nalang kasi dapat America, ONE NUMBER to any network you want.
is it applicable for mobile internet (sticks and mifi) to demand being unlocked?
how about the Prepaid ones? thanks!
malabo. mobile internet sticks and cellphones probably are considered to be different under laws and regulations and have different laws and guidelines
correct me if i’m wrong
I’m one of those who is not aware that we can demand to unlock phone aftr contract.Thank you for this info
I don’t think they are really subsidizing “fully” the handsets here in the Phils. See, high-end phones are only free at very expensive plans. How would a typical Filipino consume thousands of load plus thousands of free texts a month? Moreover, if you would want to avail the phone in a lower plan, let us say, plan 500, you need to pay a cash out of like 20k+ just to get it. I don’t think there is really subsidy here.
Even if the discounted price is just Php1,000, that’ still considered a subsidy.
I suggest you re-read your comment. Obviously, high end phones should have more subsidy on more expensive plans. You cannot expect to get a dual-core Android phone, the best Blackberry or an iPhone free on low-end postpaid plans. It’s still reasonable to expect to pay more than 15k for a top of the line phone when all you’re getting is a 500 postpaid plan.
I believe the problem with low-end plans (350-1200) is that they don’t offer any free compelling phones in their respective tier. For Plans 350-800, telcos should offer low-midrange phones (sub 1Ghz) and beyond those price points, only midrange phones should be available. If you look at Smart’s Plan 500, the best they can offer you would be a Galaxy Y which would be fine. But if you want a slightly better phone for your plan, the cash-out might still be more expensive than buying the phone from your trusted online store.
You said “text”. Text is supposed to be dirt cheap. I can’t really imagine anyone spending several thousand pesos worth of text in a month. Some people on the other hand, are very reliant on making calls and availing of the telco’s other services. Hell, my mom’s plan is already 2500 Php and she occasionally still goes over every other month.
High-end phones like the iPhone 4S, Samsung Galaxy S II SHOULD BE and are targeted at power users. Hence, they bundle them with more expensive plans.
It’s just a bit funny that some of my friends usually have the most expensive phones around, sometimes more than one in fact for different networks, and still bother to be hassled by prepaid unlitext/calls, etc. I don’t get the point. If they’re spending that much on the phones themselves, why not get a plan instead? It’s a hell of a lot more convenient.
I used to think the same way, that telcos aren’t really subsidizing the handsets but when compared to postpaid plans in the US where the minimum monthly payment you can expect is $50 per month, and they also have a cash out for some phone models, then it seems that the telco’s subsidized pricing is just right under the plan 2000 and above. However, I think Smart really has the better subsidized pricing compared to Globe.
The price difference of Globe’s iPhone and Smart’s iPhone is significantly different. Does not mean that Globe has a windfall profit from its subscribers? If Smart can sell their iPhone at a lower price, why can’t Globe. Globe should lower its iPhone price to retain and attract more iPhone users. Most of my friends prefer to buy in Greenhills rather than get a very expensive iPhone kit from Globe. Can someone from Globe explain why the huge difference in their iPhone price? And do they plan to adjust their price?
do you know the word “TAX”?
“However, I believe that once your contract has expired with your carrier (normally after 24 months), you can now demand that your handset be unlocked (although I don’t think a lot of people know about this). This is why carriers often provide additional incentives to renew contracts or offer retention plans.”
Is this true (or even applicable) with any iPhone from Globe?
Yes, applicable on any handset.
@yuga – then how come Smart won’t unlock my N82 unit even after my plan 2500 with them has ended? i’m now on plan 1200 and got the SE C902.
@PJ “Update: After talking to both reps of Smart and Globe, both clarified that the devices shipped to the by the manufacturers are already locked to their network. It’s up to the individual subscriber if they want the device unlocked on their own accord, whether or not the contract has expired or not. Unlocking will need to be done by the manufacturer or by 3rd party.”
“one subsidizing the price of the handset”
– subsidized pa ba un mahal pa nga ung mga phones nila e
Ou nga. Lalo na sa GLOBE! Grabeng presyo ng phones nila.
!@#$% na yan kaya umaalis mga subscriber nila! Poor Customer Service and Satisfaction!
For prepaid units, yes, mas mahal nga sila. But if your signing up a contract, discounted yung phones nila. For my part, I got an iPhone4 16gb with a P499 monthly plan and i got the phone, way back January 2011, for only P27,990. That’s roughly a discount of P10,000 if you buy a prepaid unit – even an unlocked one.