Verizon gets approval to make it harder for customers to leave

Verizon, one of America’s largest phone carriers, sparked a backlash last year when it took major steps to make it harder for customers to leave the company and switch to another phone carrier.

In May, Verizon sent a request to the Federal Communications Commission to waive a rule requiring phones sold to customers to be automatically unlocked after 60 days. This requirement was first established when Verizon purchased a license to use the 700 MHz spectrum in 2008 and was reaffirmed in 2021 when it acquired TracFone.

In the FCC filing, Verizon argued that devices should be locked for longer than 60 days, as under current rules it would contribute to fraud by enabling “trafficking” of the device.

“Recent industry experience shows that even a 60-day lock does not prevent device counterfeiting — a large and growing problem in the United States — and instead enables the smuggling of devices illegally shipped to foreign markets,” Verizon said in the request. “Therefore the industry standard minimum for providers not subject to the unlocking rule is 6 months or more.”

Verizon also said that unlocking phones after 60 days would make the devices less affordable for low-income customers.

“Releasing this rule will benefit consumers because it will allow Verizon to continue to provide subsidies and other mechanisms to make phones more affordable, lower upfront costs, and enable customers to get the latest and most innovative devices,” Verizon said.

In response to the filing, Verizon faced blowback from consumers and advocacy groups that flagged the move as “anti-consumer behavior.”

The company also faced criticism from telecom giant Dish Network, which claimed that Verizon should not be able to create its own phone unlock rules, and that a single rule should be established to apply to all phone carriers.

Despite recent protests, Verizon has scored a victory, as the FCC has approved a request to waive the 60-day phone unlock requirement.

In a press release, the FCC claimed that its decision “shuts down the loophole” that criminals have exploited to steal handsets and commit other crimes. It claimed that Verizon’s stolen handsets are also being resold on the dark web for premium prices on the black market, “particularly in countries such as Russia, China and Cuba.”

Verizon told the FCC that it “saw a spike in fraud of approximately 55%” after the purchase of TracFone, requiring it to move from its previous policy of a one-year lock to a 60-day lock.

“Sophisticated criminal networks have exploited the FCC’s handset unlock policies to conduct criminal activities — facilitating international handset trafficking schemes and broader criminal enterprises such as drug trafficking and human trafficking,” FFC Chairman Brendan Carr said in a press release.

Related: Verizon Cracks Down on Internet Customers Violating Core Rule

“By waiving the rule that encourages 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 into the black market,” he continued.

The FCC says that like its wireless competitors, Verizon will now “provide unlocked services in alignment with the CTIA Consumer Code for Wireless Service established in 2013.”

“These voluntary unlock standards include disclosure, postpaid and prepaid unlock policies, notification, response time, and unlock policy for deployed military personnel,” it said.

The FCC’s decision to waive the rule follows a proposal by former FCC Chair Jessica Rosenworcel to require all phone providers to follow a 60-day phone unlocking rule by 2024.

“Real competition benefits from transparency and consistency,” Rosenworcel said in the proposal. “That’s why we’re proposing clear, nationwide mobile phone unlock rules. When you buy a phone, you should have the freedom to decide to change service to the carrier you want and not be bogged down by practices that prevent you from making that choice by the device you own.”

Some consumers took to the social media platform Reddit to criticize the FCC’s decision to waive the rule. Some have flagged that the change will make it more difficult to travel internationally, as they won’t have the ability to use a local SIM card to avoid Verizon’s international roaming charges because their phone is locked.

“This is absolutely useless. Having my phone unlocked made it easy to use when I traveled to Europe last summer. I just added an SIM and don’t worry about it,” wrote one consumer.

“We are going backwards with this decision. Anti-consumer,” wrote another.

“What a failure, FCC. Most countries don’t carrier-lock devices. Verizon already has the SSN, address, etc., and has the ability to send you to collections if you don’t pay. They already do credit checks. Carrier-locking only works to prevent people from taking devices to other carriers, and prevents them from traveling abroad, “to pay for a local plan. Another consumer claim.

Verizon’s push to keep phones locked for longer than 60 days comes at a time when it is rapidly losing customers after implementing a series of price hikes and discount eliminations.

It also faces increasing competition from rival phone carriers and cable companies, all of which are beefing up their slate of deals and features to attract new customers.

In Verizon’s latest earnings report, it lost 7,000 postpaid phone customers in the third quarter of 2025, bringing its churn rate to 0.91%.

This high loss is not surprising, as many consumers nationwide are looking for more affordable phone plan options offered by mobile virtual network operators (MVNOs), amid rising prices, according to a survey by WhistleOut last year.

• The average cost of a single-line phone plan is $76 per month. Verizon customers spend avg $79 per month On a single-line phone plan.

• about 42% Customers of Verizon, T-Mobile and AT&T have seen their phone bills growth In the last year, which is 7% more than average.

• Also, 58% Customers include Verizon, T-Mobile, and AT&T Thinking about switching As prices go up, switch to a different phone carrier.

• Also, 34% Among these customers they cOnsider switching of one MVNO within the next year.

• Verizon risk of loss a joint 84.7 million customers Due to high mobile plan pricing.
  Source: WhistleOut

“Due to economic uncertainty and rising prices, many people are realizing they can save by switching their phone service to smaller carriers called MVNOs,” WhistleOut senior staff writer Max McCaskill wrote in the survey. “These carriers use major carrier networks, but at significantly lower costs.”

Verizon just made a bold leadership change a few months ago. On October 6, the phone carrier named Dan Schulman as its new CEO, and he plans to make changes to help the company reverse its poor performance.

During an earnings call in October, he criticized Verizon’s previous price hikes. He said the company’s primary goal going forward will be to “drive significant improvements in loyalty building and retention.”

“You should expect bold execution driven by sophisticated and smart marketing, actions that strengthen loyalty and the elimination of practices and processes that detract from the customer experience,” Schulman said. “Raising rates without an associated price rarely, if ever, makes customers happy.”

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However, Schulman’s promise to turn the company around has drawn skepticism. In an analyst note in October, Morningstar analyst Michael Hodel wrote that Verizon is still expected to lag behind its top rivals.

“Wireless competitive intensity has increased recently, but we expect Verizon and its two primary wireless rivals, T-Mobile and AT&T, to compete reasonably well in the coming years,” Hodel said. “That said, we expect Verizon to struggle to grow as fast as its rivals, even with new CEO Dan Schulman’s promise to focus more on customer satisfaction than in the past.”

Verizon recently launched bold offers to retain and attract customers. For example, in November, it offered select customers a discount of up to $20 per phone line for a year. The same month, it also launched several deals on phones, tablets and watches with no trade-in required.

Verizon’s increased focus on keeping customers happy follows a recent survey from JD Power, which found that the company lags behind T-Mobile and MVNOs in terms of consumer satisfaction rates.

• The Average consumer satisfaction score For postpaid plans under traditional carriers 593 (on a 1,000-point scale).

• Specifically, T-Mobile ranks the highest In the section with satisfaction scores of 636.

• Verizon takes second place 583 score.

• AT&T falls behind With Verizon’s satisfaction score 573.

• MVNOsHowever, it has an average satisfaction score 641.
  Source: JD Power

“The findings show that price is the most important driver of the overall experience, followed closely by service quality,” Carl Lepper, senior director of technology, media and telecom at JD Power, said in a press release.

Related: T-Mobile Changes Bold Phone Plan After Customer Loss

This story was originally published by TheStreet on January 14, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.