Verizon gets relief as FCC revises phone unlocking rule

The FCC has changed its rules so Verizon is no longer uniquely required to unlock phones just 60 days after activation, easing costs and fraud risks for the carrier. Verizon will now be allowed to follow a longer, more “industry standard” locking period similar to rivals, which can make switching carriers or reselling phones somewhat harder for its customers.​

What the FCC changed

• The FCC amended a rule that had forced Verizon to automatically unlock handsets 60 days after activation, a condition tied to its earlier spectrum and TracFone deals.​

• Regulators acknowledged that this earlier unlocking timetable made Verizon the only major carrier with such an early, mandatory unlock, diverging from typical U.S. industry practice.​

Why Verizon sought relief

• Verizon argued that the 60‑day unlocking rule enabled large‑scale device fraud and trafficking, claiming losses of “hundreds of millions of dollars” annually from stolen or fraudulently obtained phones.​

• The company said criminals targeted Verizon phones precisely because they became unlocked so quickly and could then be shipped and resold in foreign markets at premium prices.​

FCC’s reasoning

• The FCC said the previous rule created a loophole exploited by “sophisticated criminal networks and everyday lawbreakers,” leading to significant deadweight loss for Verizon.​

• By revising the rule, the commission aims to reduce incentives for theft and align Verizon’s unlocking obligations with broader industry standards, rather than singling it out.​

Impact on consumers

• Verizon gains more flexibility to keep phones locked longer, which may reduce fraud but can also delay when customers can take a device to another carrier.​

• Other major carriers like AT&T and T‑Mobile typically require devices to be fully paid off or kept active for several months before unlocking, and Verizon is now being brought closer to those practices.​

What happens next

• Customers buying Verizon phones going forward should expect a longer lock period than the old 60‑day rule, with details set in Verizon’s updated unlocking policy.​

• The broader FCC proceeding on creating a uniform national unlocking standard for all carriers is still active, so industry‑wide rules could evolve further over the next couple of years.​