The Federal Communications Commission (FCC) has waived a rule that previously required Verizon to unlock its handsets 60 days after activation.
Pursuing a uniform approach
Verizon is no longer required to unlock handsets within 60 days of activation. | Image Credit - Verizon
Verizon originally agreed to the 60-day unlocking window after buying 700MHz of spectrum in 2008, a commitment it reaffirmed during its 2021 acquisition of Tracfone. However, in May of this year, the company petitioned the FCC to remove the requirement, labelling it both unfair and harmful. Despite opposition from consumers, the FCC has granted the request.
The FCC sided with Verizon's argument that the 60-day window made it a prime target for criminals who steal phones for the black market or international smuggling.
Verizon is singled out because it unlocks its handsets earlier than other networks. It reported a 55 percent increase in fraud after the unlocking requirement for TracFone was reduced from one year to 60 days. The FCC now deems a 60-day unlocking period insufficient to detect fraudulent accounts.
The agency believes that a uniform approach toward unlocking will benefit consumers. Verizon's unlocking policies will now align with the CTIA Consumer Code for Wireless Service. Rather than mandating a specific timeframe, the code only lays down the general requirements, requiring devices to be unlocked once all contractual obligations are fulfilled.
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By waiving a regulation that incentivized bad actors to target one 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.
Locking a phone means using software to prevent customers from using it on a different network. This allows carriers to recoup the subsidies they offer on handsets. In some cases, even when a phone is paid for in full at the time of purchase, it remains locked for a short period of time to prevent theft and fraud.
Verizon hasn't mentioned how long it wants handsets hooked to its network, but stated in its filing that a minimum of six months is the industry standard.
Will this unlocking approach benefit customers?
Yes, by deterring criminals.
0%
Not directly.
0%
No, it's harmful.
22.22%
It will only benefit carriers.
77.78%
Customers won't like it
All carriers have different unlocking policies, and Verizon's 60-day requirement was the shortest in the industry, giving customers freedom and flexibility.
While the FCC points to criminal activity to justify the shift, critics note that even AT&T and T-Mobile report high rates of fraud and theft. It might also be argued that the responsibility of tackling device fraud falls on law enforcement agencies, not carriers.
Notably, the FCC didn't specify how the removal of the requirement would directly benefit customers.
With the smartphone market expected to decline and device prices projected to rise, the FCC may be prioritising carrier subsidies to keep flagship phones accessible, even if it means adopting restrictive consumer policies.
Anam Hamid is a computer scientist turned tech journalist who has a keen interest in the tech world, with a particular focus on smartphones and tablets. She has previously written for Android Headlines and has also been a ghostwriter for several tech and car publications. Anam is not a tech hoarder and believes in using her gadgets for as long as possible. She is concerned about smartphone addiction and its impact on future generations, but she also appreciates the convenience that phones have brought into our lives. Anam is excited about technological advancements like folding screens and under-display sensors, and she often wonders about the future of technology. She values the overall experience of a device more than its individual specs and admires companies that deliver durable, high-quality products. In her free time, Anam enjoys reading, scrolling through Reddit and Instagram, and occasionally refreshing her programming skills through tutorials.
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