Verizon is struggling to retain loyal customers after recent price hikes and increased competition in the wireless industry. Amid those pressures, the company has made a major policy change that makes it harder for customers to cut ties and switch to another carrier.
Last month, Verizon won approval from the Federal Communications Commission to waive a rule requiring phones sold to customers to be automatically unlocked after 60 days, despite backlash from consumers and advocacy groups who labeled Verizon’s request as “anti-consumer behavior.”
Verizon was first required to comply with the rule in 2008 when it obtained a license to use the 700 MHz spectrum. This requirement was reaffirmed when Verizon purchased TracFone in 2021. Verizon argued that the phone unlocking rule contributed to “device fraud” and made phones less affordable for low-income consumers.
The FCC confirmed that Verizon saw a spike in fraud after the rule took effect, and that its stolen handsets have been resold on the dark web at premium prices in several countries.
“By waiving the rule that encouraged bad actors to target a particular carrier’s handsets for theft, we now have a uniform industry standard that can help stem the flow of handsets to the black market,” FCC Chairman Brendan Carr said in a press release.
Shortly after receiving approval to waive the rule, Verizon updated its device unlock policy for its prepaid brands on January 20. Devices purchased from Total Wireless, Visible, StraightTalk and Tracfone are now unlocked upon request with 365 days of paid and active service and multiple conditions.
Recently, Verizon also tweaked its device unlock policy for postpaid phone customers, which the company claims it implemented on January 27, according to a recent report from Ars Technica.
Postpaid phones purchased from Verizon will be automatically unlocked once paid in full, meaning customers won’t be able to switch to another carrier if they have an outstanding balance.
However, if the customer pays for the device online or in the My Verizon app, the unlocking process will be delayed by 35 days.
This delay also applies if the customer uses an unsecured payment method such as a Verizon gift card, paper check or magnetic stripe swipe device to purchase or pay. For business customers, bill credits are also considered unsecured payment methods. Verizon claims the move will help prevent fraud.
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Previously, the 35-day waiting period only applied to customers who used a Verizon gift card as a payment method.
To avoid this waiting period, customers must pay the balance of the device with a secure payment such as an EMV chip, cash or contactless payment, but only at a Verizon store.
It’s also important to note that customers won’t face a waiting period for their phone to be unlocked if they pay for the device plan through automatic monthly payments.
Although Verizon claims it updated its policy on January 27, the change wasn’t live on its website until February 11, according to Ars Technica. This means that Verizon will apply the new rules to transactions that occurred before the policy change was posted on its website.
The report also states that a 35-day waiting period applies when the device is purchased.
The move from Verizon comes after seeing an influx of new wireless customers. In the fourth quarter of 2025, Verizon welcomed 616,000 new postpaid phone customers, according to its latest earnings report.
Despite this success, the company saw its postpaid phone churn, with the number of postpaid phone customers canceling their service reaching 0.95%, up from 0.88% reported in the same quarter of 2024. The company’s operating income also declined by 32.6% year-on-year.
During an earnings call last month, Verizon CEO Dan Shulman attributed the increased churn mainly to “prior pricing actions as well as competition” and said there were four reasons customers were leaving the company.
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“It grows without a corresponding price,” Shulman said. “It just annoys some customers, and we’ve seen churn increase as a result of that, and we’ve stopped doing that, and we’re going to start adding value to it.”
“The second is friction in the process, whether it’s onboarding, billing,” he continued. “When they call our customer service, it needs to be seamless, and we need to reduce complexity, and we need to address that. We’ve already taken initiatives to address each of those things. And then there’s value perception and competitive intensity.”
As more consumers switch to other traditional carriers like T-Mobile and AT&T for lower-cost phone plans, they’re also joining smaller wireless carriers like mobile virtual network operators (MVNOs).
Cable companies like Comcast and Spectrum have also been gaining new phone customers through their bundled phone, TV and Internet offerings.
Jeff Kagan, an industry analyst, said the telecom industry is changing rapidly because of the “renewed focus and energy” in these companies.
“New competitors, new technologies, and new marketing approaches will continue to reshape this industry,” Kagan said. “The question is what will the leadership of the sector look like five or ten years from now.”
As more consumers explore non-traditional phone service options, a Market Force Information survey last year found that Verizon failed to surpass smaller wireless carriers in consumer satisfaction.
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about 65% Among US consumers enrolled in phone plans from Verizon, T-Mobile, or AT&T, and paying on average, Over $100 per month for service.
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Verizon customers spend avg $157 per month In phone service, the highest among its top competitors.
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Verizon is 40% Overall brand performance scores on key customer experience metrics.
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Small wireless carriers Excellent performance At large, consumer cellular 73% Rating and Mint Mobile Scoring 65.8%.
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In consumer loyalty rankings, Verizon fell down 25th percentile, near ranking lower level of providers. In contrast, smaller carriers, including Consumer Cellular, Mint Mobile and Google Fi, placed above 75th percentile.
Source: Market Force Information
In a press release, David Murray, senior director of customer strategy at Market Force Information, said that “superior customer experiences” are what more consumers nationwide are looking for from their wireless providers.
“While cost and coverage will always be key factors, today’s consumers are placing more importance on ease of service and overall satisfaction with their provider,” Murray said. “Top performers are setting the bar in both customer experience and loyalty.”
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This story was originally published by TheStreet on February 19, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
