FCC ends Verizon’s 60-day automatic phone unlock rule

The Federal Communications Commission has lifted a longstanding requirement that forced Verizon to automatically unlock phones after 60 days, clearing the way for the carrier to keep devices locked for longer. Regulators say the change is aimed at fighting device theft and fraud, even as it raises the bar for customers who want to switch networks quickly.

What changed and why it matters for Verizon customers

In a formal order, the FCC’s Wireless Telecommunications Bureau granted Verizon a waiver from the 60-day unlock mandate that applied only to Verizon among the nationwide carriers. With the waiver, Verizon can align with broader industry practices under the CTIA Consumer Code rather than automatically releasing devices after two months.

Practically, this means postpaid phones will be unlocked once they are paid off or the service agreement ends, and prepaid devices must be unlocked no later than one year after activation. Military deployment exceptions remain in place, and customers can still buy fully unlocked phones upfront or pay off balances early to trigger unlocking.

A rule born from the 700 MHz spectrum auction

The 60-day constraint traces back to conditions tied to Verizon’s 700 MHz spectrum wins, a landmark auction that came with pro-competition obligations. The FCC later modified those conditions to allow a limited lock period of up to 60 days after activation before automatic unlocking. No other major US carrier—such as AT&T or T-Mobile—has been bound by that timetable, which made Verizon an outlier for more than a decade.

By suspending the 60-day rule now, the FCC is effectively putting Verizon on the same footing as peers while it evaluates whether new, uniform standards should apply industry-wide in a separate rulemaking.

Fraud and theft drove the FCC’s unlocking decision

Regulators cited a surge in organized crime targeting carrier device financing programs. According to information submitted to the FCC, Verizon reported losses in the hundreds of millions of dollars and nearly 785,000 devices tied to fraud in a recent year. The company and law enforcement groups told the agency that the 60-day timer provided a predictable window for criminals to acquire, wait out, and then resell unlocked phones.

The FCC noted that unlocked devices command higher resale value in international gray markets, including in Russia, China, and Cuba, which increases incentives for theft. Police organizations said the unlock window has been exploited in identity theft schemes, drug trafficking networks, and retail robberies that target carrier stores because inventory can be quickly liquidated once unlocked.

Verizon also argued that the problem intensified after its acquisition of TracFone added a large prepaid base, where subsidized or discounted devices were especially vulnerable under the 60-day rule. The Bureau concluded that a longer lock period improves the odds of detecting fraud before devices can be flipped for profit.

How phone unlocking will work for Verizon customers now

Under the CTIA Consumer Code framework, a postpaid phone must be unlocked once it’s fully paid off or the associated contract ends, assuming no red flags such as reported loss or theft. For prepaid, carriers must offer an unlock no later than one year after activation, with reasonable proof of purchase and account standing.

Consumers still have options if they want immediate flexibility. Buying factory-unlocked devices directly from manufacturers or authorized retailers remains the cleanest path. Paying off a device early also accelerates eligibility. Active-duty military personnel deployed overseas are entitled to expedited unlocking upon request, consistent with industry policy.

Impact on consumers and wireless market competition

The waiver reduces short-term portability for Verizon customers, especially those used to the 60-day auto-unlock. Longer locks can dampen churn, making it slightly harder to jump carriers after promotional deals. On the other hand, carriers and law enforcement contend that tighter controls help curb the supply chain of stolen phones, which can trickle down to lower fraud-related costs.

AT&T and T-Mobile already follow variations of the pay-off-or-one-year model and have not faced a 60-day cap. Bringing Verizon into alignment may give the FCC a cleaner baseline for possible industry-wide rules. The agency signaled that this waiver will remain in effect while it studies comprehensive unlocking standards that balance consumer choice, competition, and anti-fraud safeguards.

What Verizon customers should do next to stay flexible

• Consider purchasing a factory-unlocked phone if you anticipate switching soon.
• Verify financing terms before signing.
• Plan to pay off your device to trigger unlocking.
• Keep records like receipts and account numbers.
• Check your device’s IMEI status with your next carrier to avoid surprises.
• For travelers, confirm international eSIM options or short-term roaming.

Bottom line: the FCC’s move removes a unique constraint on Verizon and recalibrates unlocking to the same general playbook used elsewhere in the industry. The immediate trade-off is less short-term flexibility in exchange for a regulatory bet that a longer lock helps choke off fraud at scale.