Verizon to stop automatic unlocking of phones as FCC ends 60-day unlock rule, making it harder for customers to switch carriers.
The Federal Communications Commission (FCC) has granted Verizon's petition for a waiver of the 60-day unlocking requirement, effectively allowing the carrier to lock phones for longer periods without automatically releasing them. The change will make it more difficult for consumers to switch from Verizon to other carriers, as they will have to request unlocking manually.
The new policy allows Verizon to comply with the CTIA trade group's voluntary unlocking policy, which requires carriers to unlock prepaid mobile devices one year after activation and devices on postpaid plans after a contract or early termination fee is paid. However, under the waiver, Verizon only has to follow these guidelines "upon request" from consumers.
The FCC said it rejected a request to limit the locking period to 180 days, citing that the current policy provides an adequate threshold for ensuring competitive options and will not impede those options. The agency also declined to impose a longer waiting period, stating that Verizon's current loss mitigation measures are being overwhelmed solely because of the unlocking rule.
The change in policy comes after Verizon obtained a waiver from the FCC in 2008 when it purchased licenses to use 700 MHz spectrum. The carrier had previously sold phones that were already unlocked, but implemented a new locking policy in 2019 to deter fraud. However, this policy change was deemed insufficient by law enforcement associations and other groups, who argued that it allowed bad actors to exploit the system.
The FCC cited concerns of law enforcement agencies, stating that the current 60-day policy has impacted their ability to investigate stolen handsets and focus on public safety matters. Verizon has thanked the FCC for the waiver, saying it will end bad actors' ability to profit from exploiting the unlocking rules.
Consumer groups have expressed disappointment with the decision, arguing that automatic unlocking reduces switching costs, enhances competition, and promotes a more efficient and sustainable device marketplace. The National Cable & Telecommunications Association (NCTA) has urged the FCC to implement a 180-day unlocking requirement, stating that it will delay benefits for consumers and undermine competition.
As a result of the waiver, Verizon's current policy of remotely unlocking phones automatically after 60 days of paid activation and 60 days of paid active service will no longer apply. Phones already activated on the carrier's network will be unaffected by the change.
The Federal Communications Commission (FCC) has granted Verizon's petition for a waiver of the 60-day unlocking requirement, effectively allowing the carrier to lock phones for longer periods without automatically releasing them. The change will make it more difficult for consumers to switch from Verizon to other carriers, as they will have to request unlocking manually.
The new policy allows Verizon to comply with the CTIA trade group's voluntary unlocking policy, which requires carriers to unlock prepaid mobile devices one year after activation and devices on postpaid plans after a contract or early termination fee is paid. However, under the waiver, Verizon only has to follow these guidelines "upon request" from consumers.
The FCC said it rejected a request to limit the locking period to 180 days, citing that the current policy provides an adequate threshold for ensuring competitive options and will not impede those options. The agency also declined to impose a longer waiting period, stating that Verizon's current loss mitigation measures are being overwhelmed solely because of the unlocking rule.
The change in policy comes after Verizon obtained a waiver from the FCC in 2008 when it purchased licenses to use 700 MHz spectrum. The carrier had previously sold phones that were already unlocked, but implemented a new locking policy in 2019 to deter fraud. However, this policy change was deemed insufficient by law enforcement associations and other groups, who argued that it allowed bad actors to exploit the system.
The FCC cited concerns of law enforcement agencies, stating that the current 60-day policy has impacted their ability to investigate stolen handsets and focus on public safety matters. Verizon has thanked the FCC for the waiver, saying it will end bad actors' ability to profit from exploiting the unlocking rules.
Consumer groups have expressed disappointment with the decision, arguing that automatic unlocking reduces switching costs, enhances competition, and promotes a more efficient and sustainable device marketplace. The National Cable & Telecommunications Association (NCTA) has urged the FCC to implement a 180-day unlocking requirement, stating that it will delay benefits for consumers and undermine competition.
As a result of the waiver, Verizon's current policy of remotely unlocking phones automatically after 60 days of paid activation and 60 days of paid active service will no longer apply. Phones already activated on the carrier's network will be unaffected by the change.