Latest news with #Tracfone
Phone Arena
23-05-2025
- Business
- Phone Arena
Verizon wants the FCC to allow it to renege on a pro-consumer promise it made to the agency
In September 2020, Verizon offered to buy what was then the largest MVNO in the States, Tracfone, for more than $6 billion. To get the deal approved by the FCC, Verizon agreed that once it took control of Tracfone, it would change Tracfone's phone unlocking policy to match Verizon 's. The latter had a 60-day unlocking policy that then-FCC Chairwoman Jessica Rosenworcel wanted Verizon to apply to Tracfone's phones. After all, Tracfone's policy at the time was to unlock handsets only after these devices had been activated for 12 months. Rosenworcel, who then served as Chairwoman of the FCC at the behest of President Joe Biden, wanted all carriers to unlock their customers' phones 60 days after activation. "You bought your phone, you should be able to take it to any provider you want," Rosenworcel said adding that such a change would be "in the best interest of consumers and competition." Last year when President Biden was in office, the FCC unsuccessfully proposed a rule that would force all wireless providers to unlock phones after 60 days. That would have forced AT&T and T-Mobile to be on the same page as Verizon . This change in policy seems unlikely now that Republican Brendan Carr is FCC Chair and the focus is on eliminating regulations in the industry favoring the wireless companies over their customers. Knowing this, Verizon feels like it can use this change to its advantage. This week, Verizon made a formal request to the FCC asking to have the unlocking rule waived "until such time as the Commission decides on an appropriate industry-wide approach for the unlocking of wireless devices." FCC Chairwoman under Biden, Jessica Rosenworcel wanted all wireless providers to unlock phones no longer than 60 days after activation. | Image credit-FCC Trying to prove its point, Verizon said that unlocking phones leads to theft and is bad for customers. Some might say that Verizon is gaslighting its own customers by trying to get them to believe that they would be better off waiting a longer period of time to have their phones unlocked when the truth is that the longer their phone is locked to Verizon , the longer they are unable to switch wireless providers. - Verizon Verizon also complained that after it bought TracFone, there was "a sharp increase in the number of TracFone devices that deactivated before making enough payments for Verizon to recover the subsidy on the device." To make it clear what side it is on, Verizon said that the unlocking rule is "the perfect example of the type of rule that the Commission should eliminate as part of the Department of Government Efficiency's (DOGE) Deregulatory Initiative." Hey, Verizon isn't called "Big Red" for nothing. Verizon says forcing it to unlock phones 60 days after activation is not enough to combat fraud. Instead, it argues that allowing phones to be unlocked after 60 days enables trafficking in phones that are unlocked and are sent illegally to foreign markets. "This is why the industry standard for providers not subject to the Unlocking Rule is a minimum of 6 months or longer," Verizon said.
Phone Arena
21-05-2025
- Business
- Phone Arena
Verizon wants to keep customers locked to its network for longer
Verizonhas requested the Federal Communications Commission (FCC) to free it from the requirement of unlocking phones after 60 days of you buy a phone through a carrier, it's usually locked to that company's network for a predetermined period, preventing you from using the handset on another network. As Light Reading notes, when Verizon purchased 700MHz spectrum in 2008, it agreed to unlock phones after 60 days. The FCC upheld this condition when approving the company's acquisition of Tracfone in 2021. Verizon has argued that it should be freed from this obligation as it only harms consumers, competition, and itself. Verizon believes it isn't fair that it's one of the only few companies subject to this requirement. It also points out that all carriers have different locking practices, mainly because the FCC adopts requirements according to circumstances specific to each provider. For instance, T-Mobile was asked to commit to a 60-day unlocking period for MVNOs Mint and Ultra which it acquired last year — Verizon , May 2025 The FCC proposed a rule last year that would introduce a uniform unlocking policy of 60 says. T-Mobile and AT&T have voiced disapproval of the policy, arguing it would impact their ability to combat fraud and offer device subsidies. Verizon also claims that the policy makes it easier for criminal organizations to traffick subsidized devices from the US to foreign countries. Verizon says it loses hundreds of millions of dollars every year from subsidies paid to fraudsters. A 60-day locking period is not enough to deter device fraud, according to the company. Verizon states that since it's one of the few companies subject to a 60-day unlocking period, it has become the main target of such fraud. According to an analysis by the Brattle Group, there was a "sharp increase in the number of TracFone devices that deactivated before making enough payments for Verizon to recover the subsidy on the device" after the unlocking period was reduced from 365 days to 60 days. The company also says the unlocking rule is outdated and the industry has evolved a lot since its introduction 18 years ago. At that time, carriers subsidized phones and required customers to commit to multi-year service contracts to recoup the cost of discounts. Customers who wished to leave early were charged a termination fee. — Verizon , May 2025 The company says the 60-day rule impedes its ability to discount devices and compete aggressively for price-sensitive consumers, particularly in the prepaid market. Interestingly, the company hasn't said it will increase subsidies if the rule is waived. Instead, it says the removal of the rule will allow it to "more effectivelydeploy subsidies and other mechanisms to make phones more affordable, lower upfront costs, and enable customers to obtain quality, cutting-edge devices."Lastly, Verizon says that the FCC might be overreaching its authority by imposing rules like this. The company expects the Commission to rescind the requirement until an industry-wide unlocking policy is officially introduced. Verizon hasn't said how long it wants to keep phones locked, but notes in its filing that the industry standard is a minimum of 6 months or longer. — Verizon , May 2025
