About two weeks ago, Verizon scored a significant win in its battle to hold onto its customers longer.

The Federal Communications Commission approved the phone carrier’s request to waive a rule that required it to automatically unlock a phone it sells to a customer after 60 days. 

Verizon was first required to follow this rule in 2008, after it purchased licenses to use 700 MHz spectrum. The requirement was reaffirmed when Verizon acquired TracFone in 2021.

In its request, Verizon argued that the phone unlocking rule has contributed to “device fraud” and has made phones less affordable for low-income customers.

Despite Verizon facing pushback from consumers and advocacy groups who flagged the move as “anti-consumer behavior,” the FCC approved the phone carrier’s request, citing that Verizon saw a 55% increase in fraud after its 2021 purchase of TracFone required it to adhere to a 60-day lock policy.

The FCC said Verizon’s stolen handsets have even been resold on the dark web at premium prices, “particularly in countries like Russia, China, and Cuba,” according to a 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,” said FCC Chair Brendan Carr in the press release.

Verizon recently received FCC approval to set its own phone unlocking rules.

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Verizon updates device unlock policy for some customers 

Shortly after Verizon received the green light from the FCC to set its own phone unlocking rules, just as its competitors do, the phone carrier informed customers of the updated policy.

Devices purchased on or after Jan. 20 from Verizon’s prepaid brands, including Total Wireless, Visible, StraightTalk, and Tracfone, will be unlocked only upon request after 365 days (previously 60 days), and only if several conditions are met, according to a recent report from Droid Life. 

This includes the requirement that the phone has reached 365 days of paid and active service. It is important to note that stopping payments will pause progress toward that 365-day requirement. 

Customers must have an active plan on that device. And if the device was reported stolen or lost, or if there are signs of fraud, it will not be eligible for unlocking. 

In addition, the smartphone’s usage must comply with the company’s Terms of Service. 

Related: Verizon gets approval to make it harder for customers to leave

So far, the device unlock policy for postpaid phones has not changed, meaning that for now, those devices will continue to unlock after 60 days. 

The updated policy from Verizon has sparked backlash from consumers, who took to social media platform Reddit to express frustration with the change.

“Really is a shame that one of the few affordable ways for low-income folks to get a decent unlocked cell phone was closed,” wrote one Reddit user.

“Just disgusting The entire 60-day unlocking period was designed to add fairness in order to improve their already ridiculous merger with TracFone which never should have been approved in the first place. And now you have the most anti-consumer FCC ever and they get this ridiculous waivrr. It’s just so depressing. That was the last decent unlocking policy in the entire United States,” wrote another. 

“Well what SUCKS is if you were to buy a phone on installments, pay it off, and not be able to have it unlocked for a year,” wrote another user. 

Verizon is struggling to retain customers

Verizon’s move to extend its device unlocking policy from 60 days to 365 days for its prepaid brands comes as more consumers across the country contemplate switching phone carriers. Customers have grappled with higher monthly bills, according to a survey from Market Force Information last year. 

How U.S. consumers feel about Verizon’s wireless service: 

  • Approximately 65% of consumers use phone services from the “Big 3” carriers: Verizon, T-Mobile, and AT&T, spending more than $100 per month on their wireless services.
  • On average, Verizon customers pay more than $150 for service. 
  • About 23% of Verizon customers are considering switching to another carrier in the next year or two, citing better pricing, promotions, and coverage as the primary reasons.
  • Verizon scored 40% in overall brand performance across customer experience metrics.
  • Smaller wireless carriers such as Consumer Cellular and Mint Mobile scored 73% and 65.8%, respectively.
    Source: Market Force Information

“There’s a clear shift in the market towards smaller, more agile wireless carriers who are delivering superior customer experiences,” said David Murray, senior director of client strategy at Market Force Information, in a press release. 

“While cost and coverage are always key factors, today’s consumers are placing more importance on ease of service and overall satisfaction with their provider,” he continued.

Amid this growing trend, Verizon lost 7,000 postpaid phone customers during the third quarter of 2025, according to the company’s most recent earnings report. 

The loss comes after Verizon rolled out price hikes earlier in the year, a move the company’s new CEO said was one of the top reasons why customers left. 

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“For the past few years, our financial growth has relied too heavily on price increases, a strategic approach that relies too much on price without subscriber growth is not a sustainable strategy,” said Verizon CEO Dan Schulman during an earnings call in October. “Every year, it gets harder to grow as we lap past price increases and experience higher churn. This cannot continue, and there is no question that meaningful change is needed.”

He also vowed to transform the company by removing customer pain points and increasing value. Schulman also stated that Verizon’s transformation will not be “about promotional activities that can be quickly imitated.”

“It is about true innovation, not easily replicated by our competitors,” he said.

It is vital for Verizon to double down on customer retention, especially after the company suffered a major service outage last week that lasted about 10 hours, affecting roughly 1.5 million customers across multiple states.

Also, a recent J.D. Power survey found the company lags T-Mobile in consumer satisfaction for postpaid and prepaid plans. 

Phone carrier consumer satisfaction rates for phone plans:

  • The average consumer satisfaction score for postpaid plans under traditional carriers is 593 (on a 1,000-point scale). For prepaid plans, the average score is 601.
  • Specifically, T-Mobile ranks the highest in postpaid and prepaid, with satisfaction scores of 636 and 617, respectively. 
  • Verizon takes second place in both segments, with a 583 score for postpaid plans and 595 for prepaid plans. 
  • AT&T falls behind Verizon with a satisfaction score of 573 for postpaid and 597 for prepaid.
    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.

“These two dimensions are central to our new model — and for good reason,” he added. “As the market expands with a wide variety of brands designed to meet diverse customer needs, expectations are rising — not just for strong network performance, but also for service plans that reflect individual preferences.”

Related: Verizon cracks down on internet customers violating key rule