Verizon gets approval to make it harder for customers to leave

Verizon gets approval to make it harder for customers to leave

Patricia Battle

Wed, January 14, 2026 at 5:47 PM EST

8 min read

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Verizon, one of the largest phone carriers in the U.S., sparked backlash last year when it took a major step to make it harder for customers to ditch the company and switch to another phone carrier.

In May, Verizon sent a request to the Federal Communications Commission to waive a rule that required it to automatically unlock a phone it sells to a customer after 60 days. This requirement was first established after Verizon purchased licenses to use 700MHz spectrum in 2008 and was reaffirmed when it acquired TracFone in 2021.

In the FCC filing, Verizon argued that devices should be locked for longer than 60 days, as the current rule it has to adhere to contributes to fraud, enabling device “trafficking.”

“Recent industry experience shows that even a lock of 60 days does not deter device fraud — a huge and growing problem in the United States — and instead enables trafficking in devices that are illicitly sent to foreign marketplaces,” said Verizon in the request. “This is why the industry standard for providers not subject to the Unlocking Rule is a minimum of 6 months or longer.”

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

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

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

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

<em>Verizon claims that locking phones for longer than 60 days will deter fraud and keep costs low.</em>Shuttershock — *Verizon claims that locking phones for longer than 60 days will deter fraud and keep costs low.*Shuttershock

Verizon scores a win after its request to lock phones for longer

Despite recent opposition, Verizon has scored a win, as the FCC has approved its request to waive the 60-day phone unlocking requirement.

In a press release, the FCC claims that its decision “closes a loophole” that criminals have exploited to steal handsets and commit other crimes. It claimed that Verizon’s stolen handsets have even been resold on the black market for premium prices on the dark web, “particularly in countries like Russia, China, and Cuba.”

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

“Sophisticated criminal networks have exploited the FCC’s handset unlocking policies to carry out criminal acts — including transnational handset trafficking schemes and facilitating broader criminal enterprises like drug running and human smuggling,” said FFC Chair Brendan Carr in the press release.

“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,” he continued.

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

“These voluntary unlocking standards cover disclosure, postpaid and prepaid unlocking policies, notice, response time, and unlocking policy for deployed military personnel,” it stated.

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

“Real competition benefits from transparency and consistency,” said Rosenworcel in the proposal. “That is why we are proposing clear, nationwide mobile phone unlocking rules. When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice.”

Consumers aren’t happy about Verizon’s new freedom

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

“Well this just sucks. Having my phone unlocked made it so easy to use over in Europe when i visited last summer. I just added an Esim and didn't worry about it,” wrote one consumer.

“We are going backward with this ruling. Anti consumer,” wrote another.

“What a fail, FCC. Most countries do not carrier-lock devices. Verizon already gets SSN, address, etc., and already has the ability to send you to collections if you don't pay. They already do credit checks. Carrier-locking only serves to prevent folks from taking devices to other carriers, and prevents them from travelling with local plans abroad, forcing them to pay for Verizon's international passes,” claimed another consumer.

Verizon recently lost a concerning number of customers

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

It is also facing heightened competition from rival phone carriers and cable companies, which have all been ramping up their slate of deals and perks to attract new customers.

In Verizon’s latest earnings report, it revealed that it lost 7,000 postpaid phone customers during the third quarter of 2025, with its churn rate reaching 0.91%.

This elevated loss is no surprise, since more consumers nationwide are seeking more affordable phone plan options, such as those offered by mobile virtual network operators (MVNOs), amid rising prices, according to a survey from WhistleOut last year.

How Americans are responding to higher phone bills:

The average cost of a single-line phone plan is $76 per month. Verizon customers spend an average of $79 per month on a single-line phone plan.
About 42% of Verizon, T-Mobile and AT&T customers have seen their phone bills increase in the past year, which is 7% higher than average.
Also, 58% of Verizon, T-Mobile, and AT&T customers are contemplating switching to a different phone carrier as prices go up.
Additionally, 34% of these customers said they'd consider switching to an MVNO within the next year.
Verizon risks losing a combined 84.7 million customers due to high mobile plan pricing. Source: WhistleOut

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

Verizon is doubling down on customer retention

Verizon also recently made a bold leadership change a few months ago. On Oct. 6, the phone carrier appointed Dan Schulman as its new CEO, and he plans to transform the company to help curb its poor performance.

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

“You should expect bold execution powered by sophisticated and smart marketing, actions that strengthen loyalty and the elimination of practices and processes that detract from the customer experience,” said Schulman. “Raising rates without corresponding value rarely, if ever, delights customers.”

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However, Schulman’s pledge to turn around the company has drawn doubts. 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 rationally in the coming years,” said Hodel. “That said, we expect Verizon to struggle to grow as fast as its rivals, even with new CEO Dan Schulman's pledge to focus more intently on customer satisfaction than in the past.”

Verizon has recently launched bold offers to retain and attract customers. For example, in November, it offered select customers discounts of up to $20 off per phone line for a year. That 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 J.D. Power, which found that the company lags behind T-Mobile and MVNOs in terms of consumer satisfaction rates.

Phone carrier consumer satisfaction rates for postpaid phone plans:

The average consumer satisfaction score for postpaid plans under traditional carriers is 593 (on a 1,000-point scale).
Specifically, T-Mobile ranks the highest in the segment with a satisfaction score of 636.
Verizon takes second place with a 583 score.
AT&T falls behind Verizon with a satisfaction score of 573.
MVNOs, however, have an average satisfaction score of 641. Source: J.D. Power

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

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

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