Verizon has won approval from the Federal Communications Commission (FCC) to stop automatically unlocking phones 60 days after activation. This change follows Verizon's request, citing fraud concerns, and aligns with the industry standard set by the CTIA trade group. Under the new policy, Verizon must unlock prepaid devices one year after activation and postpaid devices after contract completion or payment of fees.

This shift will make it harder for consumers to switch carriers, as unlocking a phone is crucial for using it on another network. Verizon had previously faced stricter requirements than its competitors, which it accepted in exchange for spectrum licenses and merger approvals. The FCC granted the waiver, arguing that the FCC's unlocking policies had inadvertently encouraged theft by criminal networks.

The agency noted that Verizon's phones were targeted due to the early unlocking requirement, which incentivized fraud. The waiver comes amid ongoing discussions about industry standards. The FCC indicated it will decide on an appropriate approach for the unlocking of handsets, suggesting that the current policy may evolve.

Verizon's new policy will apply to all handsets activated on its network after the waiver's release, potentially affecting consumer choices and market competition. The move underscores the ongoing tension between carrier interests and consumer flexibility in the telecommunications market.