Verizon, one of the largest US phone carriers, sparked a backlash last year when it took a major step to make it harder for customers to ditch the company and switch to another phone carrier.
In May, Verizon filed a request with the Federal Communications Commission to waive a rule that required it to automatically unlock a phone it sells to a customer after 60 days. This requirement was first established after Verizon acquired licenses to use the 700 MHz spectrum in 2008 and was reaffirmed when it acquired TracFone in 2021.
In the FCC filing, Verizon argued that the devices should be blocked for more than 60 days because the current rule it must comply with contributes to fraud by allowing the devices to be “trafficked.”
“Recent industry experience shows that even a 60-day lock does not deter device fraud — a huge and growing problem in the United States — and instead allows the traffic of devices that are illicitly sent to foreign markets,” Verizon said in the filing. “That’s why the industry standard for providers not subject to the unlock rule is a minimum of 6 months or more.”
Verizon also said that unlocking the phones after 60 days makes the devices less affordable for low-income customers.
“Waiver of this rule will benefit consumers by allowing Verizon to continue to provide subsidies and other mechanisms to make phones more affordable, lower up-front costs and allow customers to get the newest and most innovative devices,” Verizon said.
In response to the filing, Verizon faced pushback from consumers and advocacy groups who flagged the move as “anti-consumer behavior.”
The company also faced criticism from telecom giant Dish Network, which argued that Verizon should not be able to create its own phone unlocking rules and that a single rule should be established that applies to all phone carriers.
Despite recent opposition, Verizon scored a victory as the FCC approved its request to waive the 60-day phone unlock requirement.
In a press release, the FCC says its decision “closes a loophole” that criminals have exploited to steal phones and commit other crimes. It claimed that stolen Verizon phones were even being resold on the black market at premium prices on the dark web, “especially in countries like Russia, China and Cuba.”
Verizon told the FCC that it “saw an increase in fraud of approximately 55%” after the TracFone acquisition required it to switch from its previous one-year lockout policy to a 60-day lockout.
“Sophisticated criminal networks have exploited the FCC’s phone unlocking policies to commit criminal acts — including transnational phone-trafficking schemes and facilitating broader criminal enterprises such as drug trafficking and people smuggling,” FFC Chairman Brendan Carr said in the press release.
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“By dropping a regulation that encouraged bad actors to target a particular carrier’s phones for theft, we now have a uniform industry standard that can help stem the flow of phones to the black market,” he continued.
The FCC says that, like its wireless competitors, Verizon will now “provide unblocking services in accordance with the CTIA Consumer Code for Wireless Services established in 2013.”
“These voluntary unlock standards cover disclosure, postpaid and prepaid unlock policies, notification, response time and unlock policy for deployed military personnel,” it states.
The FCC’s decision to drop the rule follows a proposal by former FCC Chair Jessica Rosenworcel in 2024 to require all phone providers to adhere to a 60-day phone unlock rule.
“Real competition benefits from transparency and consistency,” Rosenworcel said in the proposal. “That’s why we’re proposing clear rules for unlocking mobile phones nationwide. When you buy a phone, you should have the freedom to decide when to switch service to the carrier you want, and not have the device you own locked in by practices that prevent you from making that choice.”
Some consumers took to the social media platform Reddit to criticize the FCC’s decision to drop the rule. Some have pointed out that this change will make international travel more difficult because they won’t be able to use a local SIM card to avoid Verizon’s international roaming charges due to their phone being locked.
“Well this sucks. Having my phone unlocked was so easy to use in Europe when I visited last summer. I just added an Esim and didn’t worry about it,” one consumer wrote.
“We’re going back on this ruling. Anti-consumer,” wrote another.
“What a failure, FCC. Most countries don’t block devices. Verizon already gets your SSN, address, etc. and already has the ability to send you to collections if you don’t pay. They already do credit checks. Carrier blocking only serves to prevent people from taking devices to other carriers and prevents them from traveling on local plans abroad because another consumer is paying for them abroad,” Verizon said.
Verizon’s push to keep phones locked for more than 60 days comes at a time when it is rapidly losing customers after imposing a series of price increases and eliminating discounts.
They also face increased competition from rival phone operators and cable companies, which have increased all their offers and perks to attract new customers.
In Verizon’s latest earnings report, it revealed that it lost 7,000 postpaid customers in the third quarter of 2025, with the churn rate reaching 0.91%.
This high churn comes as no surprise as more consumers nationwide are looking for more affordable phone subscription options, such as those offered by mobile virtual network operators (MVNOs), amid rising prices, according to a survey conducted by WhistleOut last year.
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The average cost of a single line phone plan is $76 per month. Verizon customers spend on average $79 per month on a single line phone plan.
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About 42% of Verizon, T-Mobile and AT&T customers saw their phone bills grow in the last year, that is 7% higher than the average.
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Also, 58% among Verizon, T-Mobile and AT&T customers are thinking about switching to another phone operator as prices rise.
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In addition, 34% of these customers said they would cinsider switching at o MVNO during the following year.
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Verizon risk losing a combined 84.7 million customers due to high cell phone plan prices.
Source: WhistleOut
“In the wake of economic uncertainty and rising prices, many people are realizing they can save by switching phone service to smaller carriers, called MVNOs,” WhistleOut senior writer Max McCaskill wrote in the survey. “These carriers use the major carrier networks, but at a significantly lower cost.”
Verizon also recently made a bold leadership change a few months ago. On Oct. 6, the phone carrier named Dan Schulman as its new CEO and plans to turn the company around to help curb its poor performance.
During an earnings call in October, he criticized Verizon’s previous price increases. He said the company’s main focus going forward will be “to build loyalty and drive significant improvements in retention.”
“You should expect bold execution backed by sophisticated and intelligent marketing, actions that strengthen loyalty, and the elimination of practices and processes that diminish the customer experience,” Schulman said. “Increasing rates without corresponding value rarely, if ever, delights customers.”
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However, Schulman’s commitment to turning the company around has raised doubts. In an October analyst note, Morningstar analyst Michael Hodel wrote that Verizon is still expected to lag its top rivals.
“The intensity of wireless competition has increased recently, but we expect Verizon and its two main wireless rivals, T-Mobile and AT&T, to compete reasonably in the coming years,” Hodel said. “That said, we expect Verizon to struggle to grow as quickly as its rivals, even with new CEO Dan Schulman’s commitment to focus more on customer satisfaction than in the past.”
Verizon has recently launched bold offers to retain and attract customers. For example, in November it offered select customers discounts of up to $20 per phone line for a year. In the same month, it also launched more deals on phones, tablets and watches with no trade-in required.
Verizon’s increased focus on keeping customers happy follows a recent survey from JD Power that found the company trailing T-Mobile and MVNOs in terms of consumer satisfaction rates.
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The average consumer satisfaction score for postpaid plans within traditional operators is 593 (on a 1,000 point scale).
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Specifically, it ranks T-Mobile the tallest in the segment with a satisfaction score of 636.
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Verizon takes second place with a 583 Score.
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AT&T falls behind Verizon with a satisfaction score of 573.
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MVNO siteshowever, they have an average satisfaction score of 641.
Source: JD Power
“Findings show that value is the most important driver of overall experience, followed closely by service quality,” Carl Lepper, senior director of technology, media and telecommunications at JD Power, said in a press release.
Related: T-Mobile Changes Bold Phone Plan After Customer Losses
This story was originally published by TheStreet on January 14, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.