Verizon wants to lock subscribers to its network for a longer period of time, and has asked the U.S. Federal Communications Commission [PDF] to extend how long customers must wait before a Verizon smartphone can be unlocked and transferred to another carrier.
Back when Verizon purchased 700MHz spectrum for its network in 2008, it agreed to unlock smartphones after a 60-day period. Verizon now wants the FCC to waive that requirement, allowing it to change its phone unlocking policy.
Verizon claims that the 60-day unlocking requirement it is subject to leads to fraud and device trafficking. Verizon said it lost an estimated 784,703 devices to fraud in 2023, costing it "hundreds of millions of dollars." From Verizon's filing:
The Unlocking Rule applies only to particular providers -- mainly Verizon -- and distorts the marketplace in a critical U.S industry. The rule has resulted in unintended consequences that harm consumers, competition, and Verizon, while propping up international criminal organizations that profit from fraud, including device trafficking of subsidized devices from the United States. These bad actors target and harm American consumers and U.S. carriers like Verizon for their own profit, by diverting unlocked trafficked devices to consumers in foreign countries.
Verizon suggests that consumers will benefit from the waiver because it will allow the company to better compete with other carriers by "offering subsidies and other mechanisms to make phones more affordable, lower upfront costs, and enable customers to obtain the latest and most innovative devices."
Going forward, Verizon wants to be able to lock phones to its network for at least six months, putting it on par with other U.S. carriers. AT&T locks prepaid devices to its network for six months and requires postpaid devices to be paid in full before they're unlocked, while T-Mobile locks prepaid devices to its network for 12 months, and also requires postpaid devices to be paid in full. Verizon is required to unlock prepaid and postpaid devices after 60 days.
Under Biden, the FCC was considering a proposal that would require all carriers to unlock smartphones within a 60-day period, but as Ars Technica notes, that effort might be dead under new FCC Chairman Brendan Carr because of his focus on deregulation.
