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Some Verizon customers using iPhones or Android phones may not appreciate the Federal Communications Commission’s (FCC) decision on Monday, which granted the carrier’s request to lock handsets to its network for longer than the previous 60-day minimum. The waiver is already in effect as of Tuesday, which means Verizon only has to comply with the CTIA’s voluntary unlocking policy. The CTIA advises unlocking prepaid phones one year after activation. Postpaid devices can be unlocked after a contract ends. That may involve paying off a financing plan or an early termination fee.
Verizon’s win may make it harder for consumers to change carriers. Switching to a better offer from AT&T, T-Mobile, or a smaller competitor becomes more difficult if the handset is still locked to Verizon’s network. That’s assuming the subscriber wants to keep using the same phone and they have several months left in their carrier contract. The waiver’s new terms apply to all new phone activations a day after the FCC’s order, or January 13. This means iPhone and Android device buyers who purchased a phone before Verizon’s petition was granted will still benefit from the previous rule.
Groups including Consumer Reports, the Electronic Frontier Foundation, iFixit, and others opposed Verizon’s request, arguing that the 60-day unlock favored consumers and competition. Similarly, cable lobby group NCTA criticized the FCC’s decision, arguing that unlocked phones benefit smartphone buyers.
Why did Verizon change its mind?
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As Ars Technica points out, Verizon’s automatic unlock that kicked in 60 days after activation wasn’t a perk the carrier offered to its subscribers. Verizon had to agree to this specific requirement in return for two specific regulatory approvals. In 2008, the wireless operator purchased licenses for 700 MHz spectrum. In 2021, it agreed to certain conditions for its purchase of TracFone. Other carriers were not subject to the same unlocking requirements.
Verizon used to sell unlocked iPhones and Android phones but in 2019 obtained a waiver that allowed the carrier to lock the handsets for 60 days, citing fraud deterrence. However, in March 2025, Verizon said that the 60-day period wasn’t long enough to catch fraud, petitioning the FCC to remove the limit. The FCC on Monday agreed with Verizon that the 60-day locking period isn’t enough to deter fraud, including smartphone theft. The FCC order also includes a rejection of a 180-day locking period that the NCTA and Console Enterprises proposed last year.
“[The] FCC waived a 2007 rule that required one wireless carrier to unlock their handsets well earlier than standard industry practice, thus creating an incentive for bad actors to steal those handsets for purposes of carrying out fraud and other illegal acts,” the Commission said in a press release. Chairman Brendan Carr said in a statement that “sophisticated criminal networks” exploited Verizon’s 60-day unlocking period for various criminal acts, “including transnational handset trafficking schemes and facilitating broader criminal enterprises like drug running and human smuggling.” The waiver should “help stem the flow of handsets into the black market.”
Can stolen phones be resold on the black market?
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The FCC notes that Verizon’s phones have been stolen and resold on the black market for premium prices on the dark web. Countries including Russia, China, and Cuba are mentioned in the press release. The FCC also says that criminals are targeting Verizon and that the 60-day period is insufficient for detecting fraud. The FCC doesn’t offer any figures in its press release, but it cites statistics from Verizon in Monday’s order.
According to the carrier, nearly 785,000 devices were lost to fraud in 2023, including prepaid and postpaid devices, costing the carrier hundreds of millions of dollars. The order also cites a recent scheme that involved prepaid iPhones sold in New York. About 18,000 iPhone 12, 13, and SE3 models were activated on $30 plans with one month of service. They were not used, and they were later found on sale from other resellers.
It’s unclear how many stolen Verizon iPhone and Android devices are sold on the black market in the U.S. or internationally after being carrier-unlocked. Thieves would have to bypass security protections, including the Lock Screen password and Activation Lock on iPhone and other anti-theft systems on Android. Stolen devices that can’t be used because of anti-theft protection may still be sold for parts. In this scenario, the carrier lock wouldn’t matter. On the other hand, criminals continue to target smartphones, with reports last year detailing a massive iPhone theft operation in London.
