Verizon Pursues Longer Phone Lock Period: A Closer Look
In a surprising move, Verizon has petitioned the U.S. Federal Communications Commission (FCC) to extend the waiting period before its smartphones can be unlocked and transferred to another carrier . Currently, Verizon smartphones must be unlocked after a 60-day period following purchase.
The Past and the Present
Back in 2008, when Verizon acquired 700MHz spectrum for its network, it agreed to adhere to a 60-day unlocking period. Now, Verizon seeks to overturn this requirement, arguing that it leads to fraud and device trafficking.
The Argument
Verizon contends that the 60-day unlocking requirement results in unintended consequences, such as harming consumers, competition, and the company itself. Additionally, it claims that this rule supports international criminal organizations profiting from fraud, including device trafficking of subsidized devices from the United States.
A New Strategy
Verizon proposes that the waiver will benefit consumers by allowing the company to compete more effectively with other carriers. This competition would supposedly enable lower upfront costs, subsidies for devices, and access to the latest and most innovative devices.
Comparing Policies
If granted, Verizon aims to match its phone lock period with that of other U.S. carriers. Currently, AT&T locks prepaid devices for six months and requires postpaid devices to be fully paid before unlocking, while T-Mobile locks prepaid devices for 12 months and also demands full payment before unlocking.
The Future
With the new FCC Chairman Brendan Carr’s focus on deregulation, a proposal under Biden to require all carriers to unlock smartphones within a 60-day period might face obstacles. This could pave the way for Verizon’s extended locking policy.