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Verizon faces backlash over plan to delay phone unlocking beyond 60 days

Verizon faces backlash over plan to delay phone unlocking beyond 60 days

Economic Times3 days ago
ETTelecom Customers and advocacy groups are challenging Verizon's move to delay phone unlocking rules.
Verizon is trying to make it harder for customers to switch to other phone companies. In May, Verizon asked the Federal Communications Commission (FCC) to remove the rule that says they must unlock phones after 60 days of purchase, as per the reports. Right now, if you buy a phone from Verizon, it gets automatically unlocked after 60 days, and you can use it with any other carrier. Verizon agreed to this rule back in 2008, when it got licenses to use the 700 MHz spectrum. It agreed again in 2021 when it bought TracFone, as per the report by TheStreet. The former FCC Chair Jessica Rosenworcel even wanted all phone companies to follow this 60-day unlock rule. But Verizon says this 60-day rule is causing fraud and making things worse. Verizon claims phones are being trafficked to other countries even within 60 days, and fraud is still growing, as per the reports.
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Verizon also said this rule helps scammers, hurts phone companies, and makes phones more expensive for low-income customers. According to Verizon, if the rule is removed, they can give more discounts, make phones cheaper, and help customers get newer devices more easily, as mentioned by TheStreet. Some people strongly disagree with Verizon's request and say it's anti-consumer. One former Verizon customer told the FCC that locking phones makes it harder to switch if prices go up. They left Verizon due to too many price hikes, according to the report by TheStreet.
They said, 'I bought my phone, I should decide which carrier I want to use it with.' Another consumer said if phones stay locked, it would be harder to use new services like SpaceX's Starlink Cellular or use features like dual SIM, as per reports. That consumer also said Verizon had promised not to lock phones as part of their deal when they got the 700 MHz spectrum, and changing the rule now is unfair.
A group of consumer advocacy organizations also told the FCC not to let Verizon skip the 60-day rule. They said this rule helps customers, keeps fair competition, and reduces confusion in the phone market, as per the reports.
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The groups also said any changes to this rule should go through a formal rulemaking process, not just a special favor for one company. Verizon is already losing a lot of customers this year. In the first quarter of 2025, Verizon lost 289,000 postpaid phone customers, which analysts say is their worst record ever, as mentioned by TheStreet report. Verizon's CEO Hans Vestberg said on an earnings call in April that price increases are probably the reason people are leaving. He also said there was pressure from government accounts, which made the situation worse, as per reports.Q1. Why does Verizon want to stop unlocking phones after 60 days?
Verizon says the 60-day unlock rule causes fraud and phone trafficking, and removing it will help offer cheaper phones.
Q2. What are people saying about Verizon keeping phones locked longer?
Consumers and advocacy groups say it's unfair, limits choice, and makes switching carriers harder.
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