Verizon, one of the largest phone carriers in the United States, sparked a backlash last year when it took a major step to make it more difficult for customers to leave the company and switch to another phone carrier.
In May, Verizon sent a request to 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 purchased licenses to use the 700MHz spectrum in 2008 and was reaffirmed when it acquired TracFone in 2021.
In the FCC filing, Verizon argued that the devices should be locked for more than 60 days, as the current rule to adhere to contributes to fraud, which allows the “trafficking” of the device.
“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 trafficking of devices that are illicitly shipped to foreign markets,” Verizon said in the request. “This is why the industry standard for providers not subject to the Exit Rule is a minimum of 6 months or longer.”
Verizon also said that unlocking the phones after 60 days makes the devices less affordable for low-income customers.
“Removing this rule will benefit consumers because it will allow Verizon to continue offering subsidies and other mechanisms to make phones more affordable, lower upfront costs, and allow customers to get the most recent and innovative devices,” Verizon said.
In response to the filing, Verizon faced a backlash from consumers and advocacy groups who branded the move “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 to apply 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 claims that its decision “closes a loophole” that criminals have exploited to steal handsets and commit other crimes. It claimed that stolen Verizon handsets were even resold on the black market for premium prices on the dark web, “particularly in countries like Russia, China, and Cuba.”
Verizon told the FCC that it “saw an increase in fraud of about 55%” after its purchase of TracFone required it to move from its previous one-year lock policy to a 60-day lock.
“Sophisticated criminal networks have exploited the FCC’s hand-opening policies to carry out criminal acts — including transnational hand-trafficking schemes and facilitate broader criminal enterprises such as drug-trafficking and people-smuggling,” said FFC President Brendan Carr in the press release.
Related: Verizon cracks down on internet customers who break top rule
“By waiving a regulation that incentivized bad actors to target a particular carrier’s handsets for theft, we now have a uniform industry standard that can help stem the flow of handsets into the black market,” he continued.
The FCC says that like its wireless competitors, Verizon will now “provide unlocking services in compliance with the CTIA Consumer Code for Wireless Service, established in 2013.”
“These voluntary unlocking standards cover disclosure, postpaid and prepaid unlocking policies, notice, response time, and unlocking policy for deployed military personnel,” it stated.
The FCC’s decision to waive 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 are proposing clear rules for cell phone unlocking throughout the country. When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have your own device stuck with practices that prevent you from making that choice.”
Some consumers took to the social media platform Reddit to criticize the FCC’s decision to waive the rule. Some have indicated that this change will make international travel more difficult, as they will not have the ability to use a local SIM card to avoid Verizon’s international roaming charges because their phone will be locked.
“Well this just sucks. After my phone is unlocked it made it so easy to use it in Europe when I visited last summer. I just added Esim and don’t worry about it,” wrote one consumer.
“We are going backwards with this decision. Against the consumer,” wrote another.
“What a failure, FCC. Most countries don’t lock carrier devices. Verizon already gets SSN, address, etc., and already has the ability to send you to collections if you don’t pay. They already do credit checks. Carrier locking only serves to prevent people from taking devices to other carriers, and prevents them from traveling with local plans to local plans abroad,” they consummate for another.
Verizon’s push to keep phones locked for more than 60 days comes at a time when it is losing customers quickly after enforcing a series of price increases and removing discounts.
It also faces increased competition from rival phone carriers and cable companies, all of which have been increasing their slate of offers and perks to attract new customers.
In Verizon’s latest earnings report, it revealed that it lost 7,000 postpaid phone customers during the third quarter of 2025, with its churn rate reaching 0.91%.
These elevated losses are not surprising, as more consumers across the country are looking for more affordable phone plan options, such as those offered by mobile virtual network operators (MVNOs), amid rising prices, according to a survey by WhistleOut last year.
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The average cost of a single line phone plan is $76 per month. Verizon customers spend an average of $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 increase in the past year, that is 7% higher from the average.
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Also, 58% of Verizon, T-Mobile, and AT&T customers are contemplate the change to a different phone carrier as prices rise.
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In addition, 34% of these customers said they were consider switching for an MVNO within the next year.
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Verizon you risk losing a united 84.7 million customers due to high mobile plan prices.
Source: WhistleOut
“In the wake of economic uncertainty and rising prices, many people are realizing they can save by switching their phone service to smaller carriers called MVNOs,” wrote Max McCaskill, senior staff writer at WhistleOut, in the survey. “These carriers use the networks of the major carriers, but at a much lower cost.”
Verizon also recently made a bold change in leadership a few months ago. On October 6, the phone carrier appointed Dan Schulman as its new CEO, and plans to transform the company to help curb its poor performance.
During an earnings call in October, he criticized Verizon’s previous price increases. He stated that the company’s main goal going forward will be “to build loyalty and drive a significant improvement in retention.”
“You can expect bold execution powered by sophisticated and intelligent marketing, actions that strengthen loyalty and the elimination of practices and processes that detract from the customer experience,” said Schulman. “Raising rates without corresponding value rarely, if ever, pleases customers.”
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However, Schulman’s promise to turn the company around has raised doubts. In an analyst note in October, Morningstar analyst Michael Hodel wrote that Verizon is still expected to lag behind its top rival.
“Wireless competitive intensity has increased recently, but we expect Verizon and its two primary wireless rivals, T-Mobile and AT&T, to compete rationally in the coming years,” Hodel said. “That said, we expect Verizon to struggle to grow as fast as its rivals, even with new CEO Dan Schulman’s promise to focus more intently on customer satisfaction than in the past.”
Verizon recently launched bold offers to retain and attract customers. For example, in November, it offered select customers discounts of up to $20 off per phone line for a year. In that same month, it also launched several offers on phones, tablets, and watches, with no trade-in required.
Verizon’s increased focus on keeping customers happy follows a recent survey by JD Power, which found the company lags behind T-Mobile and MVNOs in terms of customer satisfaction rates.
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the average customer satisfaction score for postpaid plans under traditional carriers is 593 (on a 1,000 point scale).
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Specifically, T-Mobile ranks the highest 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 he falls behind Verizon with a satisfaction score of 573.
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MVNOshowever, they have an average satisfaction score of 641.
Source: JD Power
“The findings show that value is the most important driver of overall experience, followed closely by service quality,” said Carl Lepper, senior director of technology, media and telecommunications at JD Power, in a press release.
Related: T-Mobile makes bold phone plan change 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 Preferred Source by clicking here.