Verizon argues for longer phone locking period to combat fraud and promote competition

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Verizonis making the case that the Federal Communications Commission (FCC) should allow it to maintain the current requirement of unlocking phones after 60 days of activation. Light Reading points out that when Verizon acquired 700MHz spectrum in 2008, it agreed to this unlocking policy. The FCC reaffirmed this condition when approving the acquisition of Tracfone in 2021. Verizon believes that this requirement is unfair and hampers its ability to compete effectively. The company contends that having a uniform unlocking policy would level the playing field and enable it to offer competitive handset subsidies.
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Verizon argues that the current 60-day locking period deters fraudsters from exploiting device subsidies and trafficking devices. The company claims to lose significant amounts of money annually due to fraudulent activities related to phone unlocking. It believes that a longer locking period is necessary to combat such practices effectively. Other major carriers like T-Mobile and AT&T have voiced similar concerns against a proposed 60-day unlocking policy by the FCC, citing potential negative impacts on fraud prevention efforts and device subsidy programs. Verizon emphasizes the need for a more extended locking period to safeguard against fraudulent activities and maintain a competitive edge in the market.Verizon after the unlocking period was reduced from 365 days to 60 days.
Verizon, May 2025
The company asserts that extending the phone locking period would enable it to provide more competitive pricing for consumers, particularly in the prepaid market. Verizon argues that the FCC's imposition of unlocking rules may exceed its regulatory authority. While Verizon does not specify the desired length of the locking period, it highlights that the industry norm is a minimum of six months.
Verizon explains that most providers keep phones locked in the postpaid segment until they are fully paid off, while in the prepaid segment, devices are typically locked for at least 180 days to prevent misuse. The company contends that a longer locking period would safeguard against fraudulent activities and promote fair competition in the market.
Verizon, May 2025

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