New York, January 12, 2026, 20:18 ET — Market closed
- After Verizon raised concerns over growing fraud expenses, the FCC revised its rule mandating phone unlocking 60 days post-activation.
- Verizon slipped 1.5% on Monday, roughly matching the yield of its quarterly dividend.
- Investors are turning their attention to late-month earnings for updates on cash flow, subscriber churn, and potential policy shifts.
Verizon Communications Inc shares open Tuesday following an update from regulators. The Federal Communications Commission has altered a rule that forced Verizon to unlock phones 60 days after activation. Verizon lobbied for this change, arguing to the agency that the policy was leading to hundreds of millions in annual losses due to fraud. (Reuters)
Unlocking allows customers to switch their handset to a different carrier. However, Verizon argues this also makes stolen phones easier to flip, sparking their concerns about lost revenue.
Verizon closed Monday down 1.5% at $39.84, after trading in a range from $39.52 to $40.08. Roughly 31.3 million shares were exchanged, market data show.
The decline roughly matched Verizon’s quarterly dividend of 69 cents per share. The company said the payout will be made on Feb. 2 to shareholders recorded by Jan. 12. (Verizon)
The FCC called the change a move to “close a loophole” that criminal groups exploited to steal and traffic devices, often via dark-web resellers. The agency noted that Verizon’s unlocked phones frequently ended up being resold overseas. (Investing.com Philippines)
Verizon reported losing roughly 784,703 devices to fraud in 2023 across both prepaid and postpaid plans, costing the company hundreds of millions, according to FCC filings. The carrier also noted a roughly 55% jump in fraud cases after TracFone’s lock period shifted from one year to Verizon’s 60-day policy, a change tied to the FCC’s approval of the acquisition. (MarketScreener)
The FCC described Monday’s move as a step toward greater consistency. Traders, however, are focused on how Verizon will implement it—and if it will impact churn, the rate at which customers leave.
Separately, an SEC filing revealed Verizon changed the terms of a $30 million target performance stock unit award for CEO Daniel H. Schulman. This stock-based compensation will be issued in the first quarter and vests at the end of 2027, contingent on adjusted earnings per share and total shareholder return—factoring in both stock price changes and dividends, according to the filing. (SEC)
Acer has taken legal action, filing separate patent infringement suits targeting Verizon, AT&T, and T-Mobile US, Reuters reports. (TradingView)
Relaxing the unlocking rule doesn’t ensure smaller losses; thieves may just change their methods, and the debate could flare up again if consumer advocates challenge extended lock periods. Verizon also deals with typical telecom challenges — costly network investments and fierce promotions — amid sluggish growth.
Verizon’s fourth-quarter earnings, due Jan. 30, stand as the next major event for Wall Street. Executives plan to provide a business update and field questions on cash flow. The company will hold a webcast at 8 a.m. ET. (Verizon)
