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Hindustan Times
24-05-2025
- Business
- Hindustan Times
Verizon seeks FCC approval to lock phones for 6 months: Here's what you need to know
Verizon may soon make it harder for customers to switch carriers or unlock their phones early. The company is reportedly seeking approval from the Federal Communications Commission (FCC) and the Trump administration to extend its device lock period from the current 60 days to six months. If approved, the change would align Verizon with AT&T's policy and further tighten restrictions compared to competitors like T-Mobile, which already enforces a 12-month lock on prepaid devices. Also Read: What time is Jones Beach Air Show? A look at performance lineup and how and where to watch grand event Verizon argues that extending the lock period is necessary to deter phone theft and fraud, which ultimately harms teh customers. The company's petition stated, 'The Unlocking Rule applies only to particular providers—mainly Verizon—and distorts the marketplace in a critical US industry." It further read, 'he rule has resulted in unintended consequences that harm consumers, competition, and Verizon, while propping up international criminal organizations that profit from fraud, including device trafficking of subsidized devices from the United States. These bad actors target and harm American consumers and US carriers like Verizon for their own profit, by diverting unlocked trafficked devices to consumers in foreign countries,' as reported by Tom's Guide. Verizon also argued that after the purchase of TracFone, a 'sharp increase" was observed in the number of TracFone devices being deactivated before customers had completed the payments needed to cover the subsidized cost of the phones. Also Read: What restaurants are open on Memorial Day 2025? McDonald's, Chick-fil-A, Starbucks, and more Interestingly, Verizon's push marks a shift in direction for the smartphone industry, as the FCC under President Biden had previously considered a proposal to standardize the unlock period across all carriers at 60 days. However, that will not be happening as highlighted by Ars Technica since the new FCC chairman Brendan Carr is focused on deregulation. The news might come as a huge disappointment to Verizon consumers, especially because the company was a favourite mainly because of its shorter unlock window.
Tom's Guide
23-05-2025
- Business
- Tom's Guide
Verizon wants to keep your phone locked for 6 months — here's why
Verizon is looking to keep its devices locked to its plans for longer, meaning you may have to wait months before you can unlock or transfer your device. According to a recent report from Ars Technica, Verizon is currently petitioning the Federal Communications Commission (FCC) and the Trump administration to allow it to lock phones for a total of six months. At the time of writing, Verizon only requires customers to keep the phone locked for 60 days. If this petition goes through, it will put the company on par with AT&T's six-month period. Although both carriers don't ask nearly as much as T-Mobile, which keeps prepaid phones carrier-locked for 12-months. Verizon's offering of 60 days before customers can unlock their phones results from two different rules the company agreed upon. The first came about when it purchased the licenses to use the 700 MHz spectrum back in 2008, which came with open access requirements. The second rule was part of the merger conditions that allowed Verizon to get approval to purchase TracFone back in 2021. The reason for this is due, in Verizon's words, to unlocking phones encouraging theft while also being bad for customers. According to Verizon's petition, "The Unlocking Rule applies only to particular providers—mainly Verizon—and distorts the marketplace in a critical US industry." It then goes on to state that, "The rule has resulted in unintended consequences that harm consumers, competition, and Verizon, while propping up international criminal organizations that profit from fraud, including device trafficking of subsidized devices from the United States. These bad actors target and harm American consumers and US carriers like Verizon for their own profit, by diverting unlocked trafficked devices to consumers in foreign countries." The company has stated that, after purchasing TracFone, there was a "sharp increase" in the number of TracFone devices that were deactivated before the customers had made the necessary payments for Verizon to subsidize the device. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. Interestingly, this is something of a shift in the smartphone market as, under Biden, the FCC was considering a proposal for all carriers to set their unlock period at 60 days. However, as Ars Technica notes, that likely won't be happening thanks to the new FCC chairman Brendan Carr's focus on deregulation. For many, this might be a big turn-off, especially as the shorter unlock window made Verizon very appealing. If this news, alongside the recent Verizon outage, has made you consider moving to a new company, then we have a full breakdown of the best carriers at the moment that could help you find the right option for some of the best phones.
Yahoo
23-04-2025
- Business
- Yahoo
Verizon Communications Inc (VZ) Q1 2025 Earnings Call Highlights: Record EBITDA and Strong Cash ...
Wireless Service Revenue Growth: Up 2.7%, at the high end of the guided range. Adjusted EBITDA: $12.6 billion, highest reported result ever, growing 4% year-over-year. Free Cash Flow: Increased by over $900 million from the prior year, totaling $3.6 billion. Adjusted EPS: $1.19, up 3.5% year-over-year. Consumer Postpaid Phone Net Losses: 356,000, impacted by recent pricing actions. Prepaid Net Adds: 137,000, best since the TracFone acquisition. Broadband Net Adds: 339,000, driven by Fios and fixed wireless access offerings. Business Phone Net Adds: 67,000, affected by pressure within federal government accounts. Warning! GuruFocus has detected 7 Warning Signs with VZ. Release Date: April 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Verizon Communications Inc (NYSE:VZ) reported its highest ever adjusted EBITDA of $12.6 billion, growing 4% year-over-year. Wireless service revenue increased by 2.7%, reaching the high end of the company's guided range. The company achieved a significant improvement in free cash flow, up over $900 million from the previous year. Verizon's prepaid net adds of 137,000 were the best since the TracFone acquisition, indicating strong performance in this segment. RootMetrics recognized Verizon as the best, fastest, and most reliable 5G network in the US, highlighting the company's network leadership. Verizon experienced elevated churn in postpaid phone net adds due to recent price increases and pressure from federal government accounts. The company reported consumer postpaid phone net losses of 356,000, reflecting the impact of recent pricing actions. There is uncertainty regarding the potential effects of tariffs on handsets and telecom equipment, which could impact consumer pricing and upgrades. Verizon's fixed wireless access product, while leading broadband growth, faces challenges in ramping up multi-dwelling unit solutions. The company noted that churn is expected to improve only by the second half of the year, indicating ongoing challenges in customer retention. Q: How might tariffs on handsets and telecom equipment affect Verizon's business, and what is the expected impact on upgrades and homes passed? A: Hans Vestberg, CEO, explained that tariffs are a moving target, but a small portion of their capital expenditures is exposed to tariffs. Verizon is working with suppliers to mitigate impacts, similar to their approach during COVID-19. On handsets, if tariffs increase significantly, Verizon does not plan to absorb these costs, which may affect consumers. The impact on upgrades is uncertain, but Verizon remains financially disciplined in its promotions. Q: Can you discuss the impact of new plans and promotions on churn and whether Verizon expects to achieve industry-leading churn rates? A: Sowmyanarayan Sampath, CEO of Verizon Consumer Group, noted that recent price increases led to higher churn, but this is seen as transitory. The Verizon value guarantee, C-Band expansion, convergence strategy, and improved customer experience are expected to reduce churn, with a return to business-as-usual levels anticipated by the second half of the year. Q: How has the competitive environment affected Verizon's gross adds, and what is the outlook for EBITDA growth? A: Hans Vestberg, CEO, stated that the competitive market is consistent, and Verizon's propositions resonate well with customers. Sampath added that March and April showed strong gross add growth due to the Verizon value guarantee. Anthony Skiadas, CFO, highlighted that Verizon is confident in its EBITDA guidance, driven by strong service revenue growth and cost transformation efforts. Q: What consumer behavior trends have been observed, and how might tariffs influence consumer actions? A: Hans Vestberg, CEO, reported no major shifts in consumer behavior, with stable payment trends. Sampath noted that while Q1 upgrades were soft, Verizon expects mid single-digit growth for the year. The Verizon value guarantee is driving some pent-up demand, but tariffs have not significantly influenced consumer actions yet. Q: How is Verizon's fixed wireless access (FWA) strategy progressing, and what are the expectations for future growth? A: Hans Vestberg, CEO, explained that FWA is performing well, with ongoing C-band deployment and MDU solutions expanding availability. The multiyear plan to reach 8-9 million FWA subscribers by 2028 is on track, with no expected pressure on CapEx. Sampath added that FWA and Fios are driving strong broadband growth, with improved churn and ARPU. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
