Verizon has updated the unlock policy for its prepaid service, following the decision of the Federal Communications Commission (FCC) to unchain it from a 60-day unlocking requirement. The new rules are a concerning sign for postpaid customers.
Verizon is moving fast
Verizon has already updated the device unlocking policy for its value brand.
Since 2008, Verizon has upheld a 60-day unlocking commitment as a condition of previous transactions. In May, it asked to be freed of the requirement, arguing it was unfair. The FCC granted the request on January 13, and soon after, on January 20, the company revised the policy for value brands like Tracfone, Straight Talk Wireless, and Visible.
Previously, Verizon automatically unlocked phones 60 days after activation.
Under the revised policy, which applies to phones activated on or after January 20, phones will be unlocked upon request after 365 days of service.
What's notable here is that Verizon pushed the lock-in for prepaid customers to the CTIA Consumer Code for Wireless Service's absolute limit of one year.
This shift doesn't bode well for postpaid subscribers, and hints that it may not necessarily stick to the six-month industry standard.
Fighting churn
Light Reading reports that New Street Research says that Verizon's postpaid phone churn has climbed 0.14 percent since 2018, while it has gone down for AT&T and T-Mobile. Churn is the rate at which customers leave a company.
Recommended For You
There was a time when the postpaid churn was the lowest at Verizon. T-Mobile now holds that title.
New CEO Dan Schulman is looking to stem the tide. A longer lock-in window can help to retain customers to some extent.
Prepaid phones usually have a longer lock-in period than postpaid devices, so Verizon is unlikely to keep postpaid customers locked to its network for a minimum of a year. Provided a device has been paid off, T-Mobile only requires 40 days of active service, and AT&T mandates that a device must have been purchased 60 days ago to be eligible for unlocking.
Verizon will likely keep the unlocking policy competitive, but since the process won't be automatic, it will introduce friction, which could slow down churn. Besides, customers will have to fully pay for the device for it to qualify for unlocking, which isn't the case right now.
Would a longer postpaid unlocking policy worry you?
No, paying off a device takes time anyway.
14.29%
Yeah, carriers shouldn't be dictating the terms.
64.29%
I knew a 60-day policy was too good to last forever.
21.43%
Leveling the playing field
In 2024, the FCC was weighing a uniform 60-day unlocking policy for all carriers. This prompted a backlash from AT&T and T-Mobile, who warned that such a move would make it harder for them to offer generous discounts.
The FCC now believes that a 60-day period is not enough to snuff out fraud, and it has now adopted a standardized approach of requiring carriers to adhere to CTIA's guidelines.
It's a letdown for customers and another sign of the power that the Big 3 now wield over them.
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.
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts:
New accounts created within the last 24 hours may experience restrictions on how frequently they can
post or comment.
These limits are in place as a precaution and will automatically lift.
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: