FCC Ends 'Fake' Unlocking Rule Fueling Phone Theft

The regulation created needless complexity for consumers while enabling criminal networks to steal and resell devices.

Published on Feb. 10, 2026

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The FCC has ended a long-standing regulation that required Verizon to unlock devices just 60 days after activation, far earlier than industry standard. This rule was originally pushed by a Google lobbyist under the guise of 'openness,' but in reality it fueled a spike in phone theft and fraud as criminal networks learned they could steal Verizon devices, wait out the short unlocking window, and resell them on the black market. The FCC is now allowing Verizon to follow the same industry-standard unlocking rules as other carriers, restoring competitive neutrality.

Why it matters

The 'unlocking' mandate was never necessary in the first place, but it created real harm by making Verizon devices uniquely attractive targets for theft and fraud. Law enforcement agencies nationwide supported ending this rule, which fed larger criminal enterprises involved in drug trafficking, human smuggling, and organized fraud schemes across borders.

The details

In 2007, the FCC imposed an extra, non-statutory condition on Verizon's purchase of spectrum rights, requiring it to unlock devices just 60 days after activation. This made Verizon phones easy targets for theft, as criminal networks could steal the devices, wait out the short unlocking window, and resell them at a premium. Fraud spiked 55% after TracFone shifted from a one-year lock to the 60-day policy. No other major wireless provider was subject to this rule, creating a regulatory asymmetry that distorted competition.

  • In 2007, the FCC imposed the unlocking requirement on Verizon.
  • In 2021, the FCC doubled down by extending the requirement as a condition of Verizon's acquisition of TracFone.
  • In 2024, the GOP campaigned on cutting costly and burdensome regulations.
  • In 2026, FCC Chairman Brendan Carr ended the unlocking rule.

The players

Brendan Carr

The current Chairman of the Federal Communications Commission.

Verizon

A major U.S. wireless carrier that was subject to the FCC's unlocking requirement.

TracFone

A wireless provider that was acquired by Verizon and also subject to the unlocking requirement.

Google

A tech company that lobbied for the original unlocking requirement, which was cloaked in rhetoric of 'openness' but actually designed to weaken property rights and shift leverage away from mobile network owners.

Roslyn Layton

A broadband and regulatory economist who wrote the article criticizing the FCC's unlocking rule.

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What they’re saying

“Many regulations are fake. They don't serve their stated purpose, but they sound good on the surface. In this case, the unlocking rule created real harm.”

— Roslyn Layton, Broadband and regulatory economist (bostonherald.com)

“The rule of regulation, like that of medicine, is simple: first, do no harm. Washington ignored that principle for nearly two decades. The administration is now doing the work that should have been done years ago — cutting fake rules that failed consumers and empowered criminals.”

— Roslyn Layton, Broadband and regulatory economist (bostonherald.com)

What’s next

The FCC's action restores competitive neutrality by allowing Verizon to follow the same industry-standard unlocking rules as other carriers.

The takeaway

This case highlights how well-intentioned regulations can have unintended consequences, fueling criminal activity and harming consumers. By cutting this 'fake' rule, the FCC is restoring common sense and protecting the public from the negative impacts of misguided policies.