Verizon just got permission to keep your phone locked for longer

In an order released on January 12, the FCC’s Wireless Telecommunications Bureau granted Verizon a waiver from a rule that forced it to unlock phones after just 60 days, a requirement that no other nationwide US carrier has to follow. Verizon had previously argued that the industry standard for providers not subject to the 60-day rule is a minimum of six months or longer.

What was the 60-day unlock rule?

The 60-day unlock rule dates back to 2007, when the FCC imposed the requirement on Verizon as part of a special spectrum auction.

Verizon won most of the 700 MHz spectrum at auction, and in exchange, the FCC required it to sell phones that could not be permanently locked to Verizon’s network. The rule was designed to promote competition and consumer choice by making it easier for people to switch carriers.

In 2019, the FCC modified that rule, allowing Verizon to keep phones locked for up to 60 days after activation before unlocking them automatically.

No other major carrier, including AT&T or T-Mobile, has been bound by that 60-day deadline.

FCC’s new ruling

According to the FCC, the 60-day rule has turned Verizon into a prime target for organized phone theft and fraud.

The agency has determined that criminals have been stealing or fraudulently buying Verizon phones, waiting out the 60-day lock, and reselling the unlocked devices. These devices are often sold overseas, where they fetch high prices on black markets in countries like Russia, China, and Cuba.

The FCC cites Verizon’s claim that it lost hundreds of millions of dollars and nearly 785,000 devices to fraud in 2023 alone. The problem got much worse after Verizon bought TracFone in 2021. The acquisition brought millions of prepaid customers and heavily discounted phones under Verizon’s problematic 60-day unlock policy.

Law enforcement groups told the FCC that unlocked phones are frequently used in identity theft, drug trafficking, and international smuggling operations, and that Verizon stores have increasingly been targeted for robberies because their phones are easier to resell once unlocked.

Taking these issues into consideration, the FCC has concluded that the 60-day deadline simply isn’t long enough to detect and stop fraud before phones can be flipped for profit.

With the new rules in place, Verizon is no longer required to unlock phones after 60 days. Instead, it will follow the same industry rules used by other carriers under the CTIA Consumer Code.

That means postpaid phones will be unlocked once they are paid off or the contract is completed, and prepaid phones must be unlocked no later than one year after activation. Military personnel can still have their devices unlocked early when deployed.

Verizon also states that customers can always purchase fully unlocked phones upfront or pay off their devices early to get them unlocked.

The new rules take effect immediately and apply to all Verizon phones activated starting the day after the order was released. It will stay in place until the FCC completes a separate rulemaking that could establish new, industry-wide unlocking norms for all carriers.