Verizon is currently facing scrutiny as customers allege that the company is attempting to hinder access to T-Mobile’s satellite feature. The complaints center around Verizon’s proposed longer phone unlocking period, which critics argue would prevent users from utilizing T-Mobile’s upcoming satellite service.
The Federal Communications Commission (FCC) has been drawn into this controversy. Verizon has changed its stance regarding a rule requiring the company to unlock phones 60 days after activation.
The carrier claims that this mandate is unfairly stringent and exposes it to potential fraud, as it facilitates the trafficking of subsidized phones overseas. Moreover, Verizon asserts that this restriction hampers its ability to provide discounts to customers.
The situation becomes more intricate due to T-Mobile’s recent developments. T-Mobile boasts 1.8 million Starlink users, including many from Verizon and AT&T.
The company is set to officially launch its satellite-powered texting on July 23, with a data service following on October 1. While these features are currently in beta and free, once fully launched, all users, including T-Mobile’s existing customers and those from competitors, will be charged a monthly fee.
Verizon’s need to retain its customer base is underscored by its recent subscriber losses. Similarly, T-Mobile is implementing strategies to prevent churn among its users.
The FCC’s ruling on this issue could have significant implications, as a shortened unlocking period may lead carriers to reduce their subsidies. Verizon’s commitment to the 60-day unlocking technology dates back to its acquisition of 700 MHz spectrum in 2008, and it reiterated this promise during its purchase of Tracfone in 2021.
Customers are voicing strong opposition to the potential removal of this federal rule, arguing it could limit their ability to switch carriers, utilize dual-SIM functionalities, and access innovative services like SpaceX’s Starlink Cellular.