Latest news with #UnlockingRule
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.
Miami Herald
22-05-2025
- Business
- Miami Herald
Verizon makes bold move to make it harder for customers to leave
Over the past few months, Verizon has seen an uptick in the number of customers opting to switch to other phone providers. In Verizon's latest earnings report, it revealed that it faced a net loss of 289,000 total postpaid phone customers during the first quarter of 2025. Don't miss the move: Subscribe to TheStreet's free daily newsletter In a note to investors, analysts at New Street Research said the steep loss in customers matches Verizon's "worst result on record." Related: Verizon suffers major loss as customers switch gears The loss comes after Verizon issued several price hikes earlier this year, frustrating customers who are already battling inflation and higher costs of living. During an earnings call on April 22, Verizon CEO Hans Vestberg admitted that recent price increases contributed to the startling decrease in customers during the quarter. "We did have a slow start on postpaid phone net adds, largely driven by elevated churn due to recent price ups and pressure from federal government accounts," said Vestberg. Image source: Mordant/Bloomberg via Getty Images As Verizon struggles with fleeing customers, it is quietly pushing for the Trump administration to make it harder for customers to easily switch phone providers. On May 19, Verizon officially submitted a request to the Federal Communications Commission to waive its requirement to follow its Unlocking Rule. The rule requires Verizon to automatically unlock a phone a customer purchases from it after 60 days, allowing that customer to use that device on another phone carrier's network. Verizon was first required to adhere to the rule when it purchased licenses to use 700MHz spectrum in 2008 and acquired TracFone in 2021. In the waiver request sent to the FCC, Verizon claims that the rule has had "unintended consequences" that have contributed to criminal activity. Related: T-Mobile pulls the plug on generous offer, angering customers "Recent industry experience shows that even a lock of 60 days does not deter device fraud – a huge and growing problem in the United States - and instead enables trafficking in devices that are illicitly sent to foreign marketplaces," said Verizon in the request. "This is why the industry standard for providers not subject to the Unlocking Rule is a minimum of 6 months or longer." The company said that the Unlocking Rule "benefits bad actors and fraudsters" and shifts costs and denies benefits to low-income consumers, while "punishing" phone providers. "Waiving this rule will benefit consumers because it will allow Verizon to continue offering subsidies and other mechanisms to make phones more affordable, lower upfront costs, and enable customers to obtain the latest and most innovative devices," said Verizon. The move from Verizon comes after FCC Chair Jessica Rosenworcel submitted a proposal last year that would require all phone providers to follow the Unlocking Rule. "Real competition benefits from transparency and consistency," said Rosenworcel in the proposal. "That is why we are proposing clear, nationwide mobile phone unlocking rules. When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice." More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersKellogg sounds alarm on unexpected shift in customer behavior She said the proposed rule would increase competition between phone service providers, as consumers would have more choices. Rosenworcel added that it would also decrease the costs consumers face when switching providers and reduce overall confusion, as the same rules on unlocking would apply to all phone carriers. In March last year, Verizon submitted a filing to the FCC claiming that the rule could negatively impact phone discounts. "Requiring carriers to unlock their mobile wireless devices – which often contain software that prevents them from operating on another carrier's network – allows consumers to switch providers more easily," said Verizon in the filing. "At the same time, however, an unlocking requirement may discourage a carrier from deeply discounting a phone because it cannot recoup its subsidy if a customer immediately moves to another carrier." Verizon also said in the filing that the rule could also have "complex tradeoffs and consequences for consumers and carriers," and that it is not clear that it would benefit consumers. "Providers rely on device locks to sustain their ability to offer such subsidies," said Verizon. "Device locking periods, in fact, may greatly benefit low-income consumers because they make devices more affordable, lowering the barrier to entry to mobile service." Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
