FCC Grants Verizon Flexibility on Handset Unlocking Policy

The Federal Communications Commission (FCC) has made a significant shift in mobile phone policies by waiving the previous regulation that required Verizon to unlock handsets within 60 days of activation. This change allows Verizon to set its unlocking policies, effectively keeping customers on its network for an extended period. The new policy, however, has stirred discussions regarding customer freedom and the implications for device fraud.

Verizon | Image Credit - Light Reading

The FCC's waiver comes after Verizon petitioned the commission, arguing that the 60-day requirement made it a target for criminal activity, particularly phone theft for resale on the black market. This change aligns Verizon's policies with the broader industry standards set by the CTIA Consumer Code for Wireless Service, which focuses on general requirements rather than a specific unlocking timeframe.

Verizon's Historical Commitment

Verizon had previously agreed to the 60-day unlocking policy as part of its acquisition of 700MHz spectrum in 2008 and reaffirmed it during its 2021 purchase of Tracfone. In light of increasing fraud, the FCC has determined that the 60-day window is insufficient for identifying fraudulent accounts, leading to this recent decision.

Verizon is now free to set its unlocking policies post-activation. | Image Credit - Verizon

Changing the Landscape

While the FCC initially considered instituting a uniform unlocking policy across all carriers to promote competition, the idea met with resistance from other major carriers. Both AT&T and T-Mobile expressed concerns that a shorter unlocking period would limit their promotional capabilities. As of now, Verizon aims to align its policies with industry standards that suggest a minimum commitment of six months for customers.

Customer Reactions

Will this unlocking approach benefit customers?

Yes, by deterring criminals. Not directly. No, it's harmful. It will only benefit carriers.

Vote View Result

Votes on the impact of unlocking policy:

Yes, by deterring criminals: 6.83%

Not directly: 3.73%

No, it's harmful: 13.66%

It will only benefit carriers: 75.78%

Total Votes: 161

Concerns Over Customer Freedom

With the previous requirement of a 60-day unlocking window, Verizon customers had more flexibility compared to those of other major carriers. Critics argue that despite the FCC's justification of protecting against theft, both AT&T and T-Mobile have also reported significant fraud, suggesting that device security may be a larger issue requiring law enforcement involvement rather than a carrier's policy.