Verizon Implements Stricter Device Unlock Policies

Verizon Communications Inc. has recently updated its device unlock policies following a waiver from the Federal Communications Commission (FCC). This change makes it more challenging for customers to switch to rival carriers with their devices. The new policies apply not only to Verizon customers but also to several mobile virtual network operators (MVNOs) that utilize Verizon's network, including brands like Visible and TracFone.

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Under the new regulations, devices purchased after January 27, 2026, will remain locked until the device is fully paid off or the terms of the contract are fulfilled. For post-paid phones, customers with an outstanding balance will be unable to switch carriers. Additionally, if a customer pays off their device online or through the My Verizon App, unlocking will be delayed by 35 days unless a secure payment method, such as a credit card with an EMV chip, cash, or contactless payment in-store, is used.

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Devices purchased before January 27, 2026, will automatically unlock after 60 days of service. In comparison, AT&T requires devices to be paid in full and purchased more than 60 days prior, while T-Mobile has specific criteria based on account status and device history.

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The FCC's decision to waive the 60-day unlocking requirement, which had been in place since 2008, was influenced by Verizon's claims that the previous policy contributed to "device fraud" and inflated phone prices. The FCC noted that criminal networks were targeting Verizon handsets due to the company's unique unlocking policies. Following this waiver, Verizon introduced a new unlocking policy for TracFone and other prepaid brands, enforcing a 365-day lock period.

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Verizon is reportedly facing difficulties in retaining customers, as evidenced by a 32.6% decline in operating income and a cancellation rate of 0.95% among postpaid phone customers, significantly higher than in previous quarters. CEO Dan Schulman attributed these challenges to price increases without corresponding value, issues in billing and customer service, and a shift toward MVNO carriers.

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Critics argue that the new unlocking policies may further alienate customers, particularly in light of recent price hikes and service outages. A 2025 Market Force Information survey indicated that Verizon customers spend an average of $157 per month on their phone bills, the highest among major carriers, and report low customer satisfaction.

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Verizon has stated that the changes aim to combat device fraud and improve overall service integrity. The company maintains that the new policies are necessary to protect its network and customers.

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“Today, criminal networks are specifically targeting Verizon handsets due to the company’s unique unlocking policies,” — FCC Filing

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In summary, Verizon's new unlocking policies reflect a strategic shift aimed at addressing fraud concerns but may also contribute to customer dissatisfaction amid rising costs and service challenges.

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