Verizon customers paying off their phones early should prepare to be disappointed
Verizon may keep your phone locked to its network even after you pay off your device balance.
Verizon | Image by Light Reading
Verizon is tightening its grip
Verizon's new unlocking policy. | Image by Verizon
As reported by Ars Technica, Verizon claims to have updated its unlocking policy on January 27. Under the new requirements, a postpaid device remains locked until it's paid in full, preventing customers from switching to another network while a balance remains. Even for those who settle their balance, the unlocking time can vary depending on how and where the payment was made.
You must settle the device balance at a Verizon store. | Image by Verizon
Completing the payment using your account online, through the My Verizon app, at a Verizon Authorized Retailer, or by phone will prolong the unlock by 35 days. For business customers, even bill credits fall under non-secure methods.
Verizon explains that the 35-day window for non-secure methods, such as a gift card, paper check, or magnetic stripe swipe, allows it to prevent fraud. The company has no answer for why the policy has an effective date of January 27, even though the change was made later.
Verizon explains why some methods are subject to a delay. | Image by Verizon
Previously, as is apparent from language elsewhere on Verizon's website, only clearing the balance in My Verizon or using a Gift Card delayed the unlock by 35 days.
The previous unlocking policy was live on Verizon's website until recently. | Image by Verizon
Interestingly, the previous policy was live as recently as February 9, so it wasn't officially changed on January 27, as Verizon implies. The website instead reflected the change on February 11.
This means that Verizon will apply the rules even to transactions that occurred before the policy was official.
The article also says that the 35-day waiting period applies regardless of the purchase date.
Making things difficult
All devices purchased before January 27 will be unlocked within 60 days. | Image by Verizon
Carriers offer subsidies on new phones but in return, they prevent those devices from being used on another network before they are paid off.
While requiring customers to fully pay for a device before unlocking it is understandable, the waiting period for commonly used payment modes doesn't make sense. What makes even less sense is requiring customers to visit a corporate store — which constitutes an estimated 20% of all stores — to get their device unlocked immediately.
The backdated policy adds another layer of confusion. Postpaid churn has been rising at Verizon since 2018, which might be why it's creating friction.
AT&T requires phones to have been on its network for at least 60 days to be eligible for unlocking when the financial obligations are satisfied. T-Mobile doesn't unlock fully paid devices unless they have been active on its network for 40 days.
Is the 35-day delay anti-consumer?
Protecting its turf
While Verizon had a good fourth quarter, it still added fewer subscribers than T-Mobile. Its holiday promotions helped, but the company likely can't keep spending recklessly to keep subscriber numbers afloat. Making it harder for customers to switch could help it hold on to the ones it already has, which explains its new move.
Verizon's 60-day unlocking policy made it a target of fraud, and the 35-day verification period may alternatively stem from that same concern.
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