Jan. 16, 2026
A Bellwether? Waiver Order Signals Potential FCC Direction on Device Unlocking
Executive Summary
The regulatory landscape for mobile handset unlocking at the FCC tries to balance increasing consumer choice and enhancing competition with combating fraud.
On January 12, 2026, the Wireless Telecommunications Bureau (Bureau) of the Federal Communications Commission (FCC) issued a Waiver Order granting Verizon a waiver of an FCC Rule requiring Verizon to unlock wireless handsets 60 days after activation.
The Bureau’s decision to allow Verizon to unlock phones consistent with the CTIA Consumer Code for Wireless Service (CTIA Consumer Code) may signal how the FCC addresses handset unlocking requirements as part of an ongoing Notice of Proposed Rulemaking (Handset Unlocking NPRM).
Background and Context: Existing Frameworks for Handset Unlocking Prior to the Waiver Order
Prior to the Waiver Order, handset unlocking took place according to two frameworks: the voluntary CTIA Consumer Code followed by most carriers and a specific, more stringent set of requirements applied to Verizon.
The CTIA Consumer Code
The CTIA Consumer Code includes a voluntary set of unlocking commitments that have been adopted by major carriers such as AT&T and T-Mobile, as well as many smaller carriers. These standards provide a baseline for unlocking practices.
The Six CTIA Unlocking Commitments:
|
Commitment |
Description |
|
1. Disclosure |
Carriers must post clear, concise, and readily accessible policies on their websites for both postpaid and prepaid device unlocking. |
|
2. Postpaid Unlocking Policy |
Upon request, carriers will unlock devices for customers after the fulfillment of a service contract, device financing plan, or payment of an early termination fee. |
|
3. Prepaid Unlocking Policy |
Upon request, carriers will unlock prepaid devices no later than one year after initial activation, consistent with reasonable time, payment, or usage requirements. |
|
4. Notice |
Carriers will clearly notify customers when their devices are eligible for unlocking or will automatically unlock them remotely at no additional fee. |
|
5. Response Time |
Within two business days of a request, carriers will unlock an eligible device, initiate a request to the OEM, or explain why the device does not qualify. |
|
6. Deployed Personnel Policy |
Carriers will unlock devices for deployed military personnel who are customers in good standing upon provision of deployment papers. |
Application of the Limited Unlocking Rule to Verizon
In 2007, as part of a set of "open platform" requirements for 700 MHz C Block licensees, the FCC adopted 47 CFR § 27.16(e) (the Rule) prohibiting carriers from locking handsets operating on these frequencies to prevent their use on other networks. Of note, Verizon is the only nationwide provider subject to these unlocking requirements.
In 2019, the Bureau granted Verizon a partial waiver of the Rule, allowing it to lock handsets for 60 days following activation. In 2021, as a condition of its acquisition of TracFone and its approximately 20 million prepaid customers, Verizon was required to extend its 60-day unlocking policy to TracFone devices activated on its network.
FCC Proposal for a Uniform Unlocking Rule
In July of 2024, the FCC proposed a uniform 60-day unlocking requirement for all wireless carriers as part of the Handset Unlocking NPRM. The FCC tentatively concluded that this policy would serve the public interest by fostering a more competitive marketplace. The rule would include an exception letting a provider refuse to unlock a handset if it determined within the 60-day period that the device was purchased through fraud.
The Waiver Order
The Waiver Order relieved Verizon of the obligations imposed by the Rule (as modified) and the TracFone acquisition condition. The waiver permits Verizon to align its unlocking policies with the CTIA Consumer Code until the FCC adopts an industry-wide rule for handset unlocking.
The waiver of the Rule was granted based on "special circumstances," including Verizon's documented annual losses of hundreds of millions of dollars and a reported 55% spike in fraud following the application of the 60-day rule to its TracFone prepaid brand.
What Carriers Need to Know
The Bureau’s willingness to relieve Verizon of the 60-day unlocking requirement- the same requirement proposed by the FCC in the Handset Unlocking NPRM – for the application of the unlocking standards in the CTIA Consumer Code may indicate that the FCC is inclined to adopt a similar standard.
We will keep a close eye on the Handset Unlocking NPRM and provide further updates.
