Verizon Pushes to End Phone Unlocking Rules

For years, if you bought a phone from Verizon, it came with a straightforward understanding: after 60 days, that device was automatically unlocked, freeing you to use it with any compatible carrier.
This rule stems from specific conditions the FCC imposed on Verizon, notably after its 2008 acquisition of 700MHz spectrum and its 2021 purchase of prepaid provider TracFone.
Now, Verizon is taking a bigger step, formally petitioning the FCC to eliminate these very requirements.
The carrier argues that the rule is outdated and illogical, causing "substantial and growing harms to consumers, competition and Verizon" without offsetting benefits.
Why Does Verizon Want This Rule Gone?
They've laid out a few key arguments for their request to the FCC:
- Fighting Fraud: Verizon claims they're losing hundreds of millions of dollars each year to device fraud. They say criminals are exploiting the 60-day unlocking policy, buying subsidized phones and then illegally reselling them overseas. This is why, according to Verizon, other carriers not under this rule often keep phones locked for six months or even longer.
- An Outdated Rule: Verizon argues that the FCC's unlocking rule, which was put in place almost two decades ago, just doesn't make sense in today's wireless world. They believe this 'experiment' with unlocking should end because it's actually hurting consumers, competition, and their own business.
- Legal Backing: The company is also pointing to recent Supreme Court decisions, specifically the 2024 Loper Bright ruling. They suggest this decision essentially takes away the FCC's power to enforce these unlocking requirements in the first place.
A History of Disagreement
This isn't the first time Verizon has openly expressed frustration with the FCC's phone unlocking rules.
They've previously hit out at what they called the agency's 'piecemeal policymaking' and 'asymmetric regulation,' pushing for a more consistent, uniform approach to phone unlocking across the U.S. wireless industry.
Verizon even reiterated this stance earlier this year, aligning with FCC Chairman Brendan Carr's 'Delete, Delete, Delete' initiative, which aims to cut unnecessary regulations.
The timing of this latest push by Verizon might also be strategic. It comes right after they secured FCC approval for their $20 billion purchase of Frontier Communications, a move that likely frees them from earlier regulatory considerations that could have held back such requests.
What Does This Mean for You?
While the FCC's decision on Verizon's request is still up in the air, the outcome could significantly change your options.
Just last year, the FCC's Democratic commissioners pushed for a standard 60-day unlocking rule across the entire wireless industry, emphasizing simplicity and clarity for consumers.
So, if Verizon's waiver is approved, be prepared: it could lead to much longer lock periods on phones you buy from them, limiting how soon you can switch carriers.
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