NEW YORK, January 13, 2026, 15:19 ET — Regular session
Shares of Verizon Communications Inc dropped roughly 2.5% to $38.86 in Tuesday’s afternoon session after U.S. regulators scrapped a rule requiring the carrier to unlock phones 60 days post-activation. Verizon told the Federal Communications Commission that the policy drove significant fraud and cost the company hundreds of millions, with about 784,703 devices falling victim to fraud in 2023.
Unlocking turns off software that locks a handset to a single network, letting users switch carriers while keeping their device. The FCC’s order takes effect immediately, covering devices activated on Verizon’s network from the following day onward. It remains active until the agency finalizes a broader industry policy. Verizon agreed to adhere to the CTIA consumer code throughout the waiver period.
The FCC noted Verizon is the sole major carrier complying with the 60-day mandate, which stems from 700 MHz spectrum regulations and was later applied to TracFone’s prepaid devices. FCC Chairman Brendan Carr tied the update to cracking down on handset trafficking, saying it could “help stem the flow of handsets into the black market.”
AT&T slipped roughly 1.8%, while T-Mobile US tumbled around 4.5%, dragging the sector down overall.
Verizon’s public policy chief Kathy Grillo insisted the waiver would “end bad actors’ ability to exploit” unlocking rules to traffic subsidized devices overseas. But consumer advocates pushed back, saying the FCC should address theft and fraud without restricting customers’ freedom to switch carriers. fiercewireless.com
Separately, Verizon revealed in an 8-K filing that its board’s human resources committee adjusted the conditions of a $30 million performance stock unit award for executive Daniel H. Schulman, linking it to earnings-per-share and relative total shareholder return goals through 2027.
Investors want to see how fast this rule change impacts key metrics: upgrade activity, device losses, and churn — the industry’s term for customer turnover. Verizon positions the waiver primarily as a fraud-control tactic, but it also affects the switching friction carriers battle over in the saturated U.S. wireless market.
The risk here isn’t technical—it’s political. Consumer pushback might intensify scrutiny of handset-locking policies, while the FCC’s wider stance on unlocking remains unsettled in the background.
Verizon is set to release its fourth-quarter 2025 earnings on January 30, with a webcast kicking off at 8 a.m. ET. Investors will be focused on subscriber trends and any initial insights into fraud and device economics following the FCC’s recent ruling.
