FCC lets Verizon lock phones for longer, making it harder to switch carriers

The Federal Communications Commission (FCC) has approved a significant change that allows Verizon to extend the time it can lock phones to its network. This decision eliminates the previous rule requiring the carrier to unlock devices 60 days after activation, complicating the process for customers wishing to switch to other providers. The FCC's ruling grants Verizon a waiver from the 60-day unlocking mandate, which means the company now only needs to adhere to the voluntary unlocking policy set by the CTIA trade association. According to this policy, prepaid devices must be unlocked after one year, while postpaid devices can be unlocked only after fulfilling contract terms or any applicable termination fees. Unlocking a phone enables it to operate on different carrier networks, enhancing consumer choice. Previously, Verizon was obligated to unlock devices automatically after a two-month period. However, with the new waiver, Verizon is required to unlock phones only when specifically requested by customers. The FCC has indicated that this waiver will remain in place until it establishes a comprehensive industry standard for handset unlocking. Notably, the FCC dismissed a proposal to limit the locking duration to 180 days, asserting that the CTIA's guidelines already provide sufficient consumer protection and competitive options. Historically, Verizon has adhered to stricter unlocking policies than its competitors, a situation that arose from agreements made during its acquisition of 700 MHz spectrum licenses in 2008 and again in 2021 during its merger approval for the TracFone purchase.