Verizon Extends Unlock Lock-In to 365 Days, Adds 35-Day Postpaid Delay
Verizon won FCC approval to waive its 60-day automatic unlock rule, now requiring prepaid devices to have 365 days of active service before unlocking and imposing a 35-day delay on postpaid unlocks after full payment via nonsecure methods. This comes after Q4 operating income fell 32.6% and churn reached 0.95%.
1. Policy Change Details
Verizon received FCC approval to waive its longstanding 60-day automatic unlock requirement. Prepaid devices on Total Wireless, Visible, StraightTalk and Tracfone brands must now complete 365 days of paid service and meet additional criteria before unlocking, while postpaid phones unlock only after full payment and a 35-day delay if paid via nonsecure methods.
2. Impact on Customer Portability
Under the updated policy, customers using gift cards, paper checks, or non-EMV payments face a mandatory 35-day waiting period after full device payment before unlocking. Secure payments such as EMV-chip cards, cash, or contactless in stores, and automatic monthly payments bypass delays, but many users encounter extended lock-in periods.
3. Subscriber Metrics and Financials
In Q4 2025 Verizon added 616,000 postpaid phone customers, yet churn rose to 0.95% from 0.88% a year earlier and operating income plunged 32.6% year over year. Management attributes elevated cancellations to prior price hikes, competitive intensity and process friction, prompting initiatives to enhance service value and reduce complexity.
4. Competitive and Industry Context
Verizon faces pressure from lower-cost carriers including T-Mobile, AT&T and MVNOs, as well as bundled offerings from cable providers. Average monthly customer spending of $157 remains highest in the sector, but satisfaction surveys show smaller carriers outpacing Verizon, intensifying the need for retention-focused strategies.