Verizon Wants to Lock Phones Longer Like AT&T and T-Mobile

[MacRumors]

Verizon wants to lock subscribers to its network for a longer period of time, and has asked the U.S. Federal Communications Commission [PDF] to extend how long customers must wait before a Verizon smartphone can be unlocked and transferred to another carrier.

Back when Verizon purchased 700MHz spectrum for its network in 2008, it agreed to unlock smartphones after a 60-day period. Verizon now wants the FCC to waive that requirement, allowing it to change its phone unlocking policy.

Verizon claims that the 60-day unlocking requirement it is subject to leads to fraud and device trafficking. Verizon said it lost an estimated 784,703 devices to fraud in 2023, costing it "hundreds of millions of dollars." From Verizon's filing:

The Unlocking Rule applies only to particular providers -- mainly Verizon -- and distorts the marketplace in a critical U.S industry. The rule has resulted in unintended consequences that harm consumers, competition, and Verizon, while propping up international criminal organizations that profit from fraud, including device trafficking of subsidized devices from the United States. These bad actors target and harm American consumers and U.S. carriers like Verizon for their own profit, by diverting unlocked trafficked devices to consumers in foreign countries.

Verizon suggests that consumers will benefit from the waiver because it will allow the company to better compete with other carriers by "offering subsidies and other mechanisms to make phones more affordable, lower upfront costs, and enable customers to obtain the latest and most innovative devices."

Going forward, Verizon wants to be able to lock phones to its network for at least six months, putting it on par with other U.S. carriers. AT&T locks prepaid devices to its network for six months and requires postpaid devices to be paid in full before they're unlocked, while T-Mobile locks prepaid devices to its network for 12 months, and also requires postpaid devices to be paid in full. Verizon is required to unlock prepaid and postpaid devices after 60 days.

Under Biden, the FCC was considering a proposal that would require all carriers to unlock smartphones within a 60-day period, but as Ars Technica notes, that effort might be dead under new FCC Chairman Brendan Carr because of his focus on deregulation.

Article Link: Verizon Wants to Lock Phones Longer Like AT&T and T-Mobile

 

[MacUserFella]

They better lower their damn prices then if they want people to stay longer

 

[seek3r]

They better lower their damn prices then if they want people to stay longer

There's only 3 major carriers left in the US, and their coverage maps dont fully line up, they know they have a mostly captive market. Not to mention the other 2 will just raise prices too if they do, they'll never ever drop prices. The GOP fixation with deregulation at all costs allows for collusion and monopolistic policies at huge scale

 

[fzJNotIBOxgnbqejSeVCvJScL]

Let’s be honest: No legitimate customer has a problem with phones being locked to the carrier given unlocking is a consumer right nowadays. The dishonest people crying and screaming are buying phones form one carrier to take advantage of some amazing deal or using it as free distribution (instead of buying it from a store that will sell to them unlocked) and hence finding it difficult to unlock. No one is stopping these undesirables (because carriers make money from service, not phone sales) from going to the manufacturer and paying their MSRP that rarely goes down. But of course these are cheap, lazy, and dishonest people trying to cheat their way into a discount, what exactly did they expect?

And yes, carriers and phone locking (at least for some short period) enable those of us carrier customers to get good deals on phones, if only for some period on a time horizon that you have to look at to see when is it optimal to upgrade or change to a competitor.

 

[seek3r]

Let’s be honest: No legitimate customer has a problem with phones being locked to the carrier given unlocking is a consumer right nowadays. The dishonest people crying and screaming are buying phones form one carrier to take advantage of some amazing deal or use it as free distribution and hence finding it difficult to unlock. No one is stopping these undesirables (because carriers make money from service, not phone sales) from going to the manufacturer and paying their MSRP that rarely goes down. But of course these are cheap, lazy, and dishonest people trying to cheat their way into a discount, what exactly did they expect?

so you dont know anyone who travels is what I'm getting from this

 

[phenste]

Big Telecom in America is the biggest ****ing joke known to man. don’t ever let anyone tell you different

 

[jlc1978]

so you dont know anyone who travels is what I'm getting from this

Buy an unlocked phone. That’s what I did.

 

[Mity]

The US need a law that prevents locking phones.

 

[seek3r]

Buy an unlocked phone. That’s what I did.

I mean, that's what I do, but the financing options available to a lot of folks make the carrier offers attractive, and it's not even like this was forced on Verizon, they agreed to this as part of the price consolidating the market and limiting competition, now they want all the benefits of that deal and none of the concessions

 

[jz0309]

Verizon claims that the 60-day unlocking requirement it is subject to leads to fraud and device trafficking. Verizon said it lost an estimated 784,703 devices to fraud in 2023, costing it "hundreds of millions of dollars." From Verizon's filing:
Verizon suggests that consumers will benefit from the waiver because it will allow the company to better compete with other carriers by "offering subsidies and other mechanisms to make phones more affordable, lower upfront costs, and enable customers to obtain the latest and most innovative devices."

really? consumers will benefit from being locked in longer? wow, didn't know that Verizon has our, us the consumers, best interest on their mind. /s

This is bad, bad enough that Apple stopped accepting unlocked phones on the 18 or 24 months zero financing ...
For the past 10+ years I have purchased all iPhones for myself and family unlocked ...

 

[Chaos215bar2]

Buy an unlocked phone. That’s what I did.

Isn't that the entire point of this? Requiring a carrier to actually let their customers use the hardware they've purchased? Hardware which, if purchased on an installment plan, is already well protected by exactly the same laws which prevent credit card fraud should someone decide they want to buy something and then not pay for it.

Let’s be honest: No legitimate customer has a problem with phones being locked to the carrier given unlocking is a consumer right nowadays. The dishonest people crying and screaming are buying phones form one carrier to take advantage of some amazing deal or using it as free distribution (instead of buying it from a store that will sell to them unlocked) and hence finding it difficult to unlock.

Guess you never travel internationally, do you?

Regardless, if the deal was so bad for Verizon, then I guess Verizon shouldn't have taken the deal, should they? They're free to sell the spectrum if they want out.

But of course it's only individuals that we expect to be responsible and who aren't allowed to ask for a better deal, lest they be seem as "crying and screaming". A 100+ billion dollar company can't possibly be expected to stick with the deals it already agreed to.

 

[russell_314]

It’s unfortunate that Apple is in bed with these carriers now. Apple even charges a fee if you want to buy a new phone that’s unlocked. IMO that’s crazy

 

[russell_314]

The US need a law that prevents locking phones.

This but laws are passed by politicians. Politicians are bribed by big corporations like Verizon. No way would they decline bribes to vote on such a law.

 

[Rogue AI]

Yeah, this is why I don’t buy phones on lease from the carrier. I’m not getting myself locked into a network. And eff Verizon for kissing this admin’s behind.

 

[Rogue AI]

The US need a law that prevents locking phones.

100%. But our politicians on both sides of the aisle gets money from Verizon and big tech. It’ll never happen.

 

[HiVolt]

Big Telecom in America is the biggest ****ing joke known to man. don’t ever let anyone tell you different

You haven't seen Canadian Telecom, lol.

However in this area, one of the very few good things our regulators did was ban phone locking COMPLETELY in 2018.

 

[Reason077]

The US need a law that prevents locking phones.

I remember the bad old days of phone locking in the UK. But it's been completely banned since 2021. Previously there had been a rule that required carriers to unlock phones when requested, but that was still annoying for customers.

Sorry to hear that you're still dealing with this, Americans!

 

[robvalentine]

Let’s be honest: No legitimate customer has a problem with phones being locked to the carrier given unlocking is a consumer right nowadays. The dishonest people crying and screaming are buying phones form one carrier to take advantage of some amazing deal or using it as free distribution (instead of buying it from a store that will sell to them unlocked) and hence finding it difficult to unlock. No one is stopping these undesirables (because carriers make money from service, not phone sales) from going to the manufacturer and paying their MSRP that rarely goes down. But of course these are cheap, lazy, and dishonest people trying to cheat their way into a discount, what exactly did they expect?

And yes, carriers and phone locking (at least for some short period) enable those of us carrier customers to get good deals on phones, if only for some period on a time horizon that you have to look at to see when is it optimal to upgrade or change to a competitor.

Wait until you find out that in the UK all phones are unlocked by law (may also be an EU thing too). I doubt that the fraud thing is entirely true.

 

[mwhite]

Deleted

 

[ZipZilla]

The solution here is for everybody to buy unlocked phones and stop financing phones through carriers. then it's a moot point.

They have a point about the fraud, I used to work in the business and all of the carriers get hit hard from fraud rings stealing phones

 

[Nermal]

I remember the bad old days of phone locking in the UK. But it's been completely banned since 2021. Previously there had been a rule that required carriers to unlock phones when requested, but that was still annoying for customers.

Sorry to hear that you're still dealing with this, Americans!

World: We've successfully stamped out phone locking!
USA: MORE!

 

[CarlJ]

Big Telecom in America is the biggest ****ing joke known to man. don’t ever let anyone tell you different

American government says "hold my beer".

 

[JesterJJZ]

Moved away from Verizon about a year ago. Cut my prices in half and still the same network and service with Spectrum.

 

[CarlJ]

..., and it's not even like this was forced on Verizon, they agreed to this as part of the price consolidating the market and limiting competition, now they want all the benefits of that deal and none of the concessions

But I'm sure they'll be returning the 700MHz spectrum that they licensed under this deal, right? Right?

 

[ProbablyDylan]

The US need a law that prevents locking phones.

Consumer protections? In my United States? Absolutely not!