FCC Acts to Bring More Uniform Approach to Handset Unlocking Rules

The Federal Communications Commission took action to bring a more uniform approach to its handset unlocking rules that will benefit consumers. The FCC's action also closes a loophole that sophisticated criminal networks and everyday lawbreakers alike have exploited to engage in illicit activity. Specifically, the FCC waived a 2007 rule that required one wireless carrier to unlock its 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. Under the FCC’s 2007 unlocking requirements, Verizon is the only major provider that the FCC requires to unlock its handsets 60 days after activation, which is earlier than standard industry practice. The FCC extended this unique requirement in 2021 as a condition of Verizon’s acquisition of Tracfone. Verizon has stated that it “saw a spike in fraud of approximately 55 percent after TracFone moved from its earlier policy of a one-year lock to Verizon’s 60-day lock.” Under this waiver order from the FCC’s Wireless Telecommunications Bureau, Verizon will, like its competitors, provide unlocking services in alignment with the CTIA Consumer Code for Wireless Service, established in 2013.