Verizon has struggled to retain loyal customers due to recent price increases and increased competition in the wireless industry. Under these pressures, the company made significant policy changes to make it harder for customers to cut ties and switch to another carrier.
Last month, Verizon won approval from the Federal Communications Commission to waive a rule requiring it to automatically unlock phones it sells to customers after 60 days, despite strong opposition from consumer and advocacy groups, who labeled Verizon’s requirement “anti-consumer behavior.”
Verizon was first required to comply with the rule in 2008 after receiving a license to use the 700 MHz spectrum. Verizon reiterated this claim when it acquired TracFone in 2021. Verizon argued that the phone unlocking rules fostered “device fraud” and made it harder for low-income consumers to afford phones.
The FCC confirmed that Verizon experienced a surge in fraud after the rule took effect, and that its stolen phones were even resold at inflated prices on the dark web in several countries.
“By dropping a rule that incentivizes bad actors to target phones from specific carriers, we now have a unified industry standard that can help stop phones from entering the black market,” FCC Chairman Brendan Carr said in a press release.
Verizon updated its device unlocking policy for its prepaid brands on January 20, shortly after receiving approval to be exempt from the rule. Devices purchased from Total Wireless, Visible, StraightTalk and Tracfone can now be unlocked on request only after 365 days of paid active service and if several conditions are met.
Recently, Verizon also adjusted its device unlocking policy for postpaid phone customers, a change the company claimed to have implemented on January 27, according to a recent report by Ars Technica.
Postpaid phones purchased from Verizon are automatically unlocked once paid in full, meaning customers won’t be able to switch to another carrier if they have a balance.
However, if customers pay for the device online or in the My Verizon app, the unlocking process will be delayed by 35 days.
This delay also applies if a customer purchases or pays for a device using an unsecured payment method, such as a Verizon gift card, paper check, or magnetic stripe swipe card. Bill credit is also considered an unsafe payment method for business customers. Verizon claims the move will help prevent fraud.
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Previously, the 35-day waiting period only applied to customers using Verizon gift cards as a payment method.
To avoid this waiting period, customers must pay off their device balance via a secure payment method such as a credit card with an EMV chip, cash or contactless payment, but only at a Verizon store.
It’s also important to note that customers shouldn’t encounter a waiting period to unlock their phone if they pay through automatic monthly payments on their device plan.
Although Verizon claimed to have updated its policy on January 27, the change was not posted on its website until February 11, Ars Technica reported. This means Verizon will apply the new rules to transactions that occurred before it posted the policy change on its website.
The report also states that the 35-day waiting period applies regardless of when the device was purchased.
Verizon’s move comes after seeing an influx of new wireless customers. According to Verizon’s latest financial report, Verizon welcomed 616,000 new postpaid phone customers in the fourth quarter of 2025.
Despite this success, the company’s postpaid phone churn rate (the number of postpaid phone customers who canceled service) hit 0.95%, up from its reported churn rate of 0.88% in the same quarter of 2024. The company’s operating income also fell 32.6% year over year.
During last month’s earnings call, Verizon CEO Dan Schulman attributed rising churn rates primarily to “previous pricing practices as well as competition,” saying there were four reasons customers leave the company.
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“It’s a price increase without commensurate value,” Schulman said. “It’s just going to piss off some customers and we’ve seen churn go up because of it and we’ve stopped doing that and we’re going to start adding value to it.”
“The second is friction in the process, whether it’s onboarding or billing,” he continued. “When they call our customer service, it needs to be flawless, we need to reduce complexity, we need to fix that. We’ve taken steps to address every issue. And then there’s price perception and competitive intensity.”
While many consumers have turned to other legacy carriers, such as T-Mobile and AT&T, for lower-priced cell phone plans, they have also been joining smaller wireless carriers, such as mobile virtual network operators (MVNOs).
Cable companies such as Comcast and Spectrum are also winning new phone customers by bundling phone, TV and Internet services.
Industry analyst Jeff Kagan said the telecom industry is changing rapidly as the companies “refocus and energize.”
“New competitors, new technologies and new marketing methods will continue to reshape the industry,” Kagan said. “The question is what leadership in the field will look like in five or 10 years.”
As more consumers explore non-traditional phone service options, a survey last year by Market Force Information found that Verizon failed to outperform smaller wireless carriers in consumer satisfaction.
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about 65% of U.S. consumers signed up for a Verizon, T-Mobile or AT&T cell phone plan and paid the following on average: over $100 Monthly service.
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Verizon customer average spend $157 per month Ranked highest among its top competitors for phone service.
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Verizon has one 40% Overall brand performance scores for key customer experience metrics.
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smaller wireless carriers perform better than Larger, consumer mobile phones 73% Ratings and Mint Mobile ratings 65.8%.
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In consumer loyalty rankings, Verizon fell below 25%, ranking close to lower level provider. By comparison, smaller carriers like Consumer Cellular, Mint Mobile and Google Fi Ranking or above 75th percentile.
Source: Market Forces Information
David Murray, senior director of customer strategy at Market Force Information, said in a press release that more and more consumers nationwide are looking for a “superior customer experience” from wireless providers.
“While cost and coverage will always be key factors, today’s consumers place greater emphasis on convenience of service and overall satisfaction with their provider,” Murray said. “The top-performing companies set the benchmark in both customer experience and loyalty.”
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This article was originally published by TheStreet on February 19, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.
