Verizon makes bold move to make it harder for customers to leave

Over the past few months, Verizon has seen an uptick in the number of customers opting to switch to other phone providers.

In Verizon’s latest earnings report, it revealed that it faced a net loss of 289,000 total postpaid phone customers during the first quarter of 2025.

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In a note to investors, analysts at New Street Research said the steep loss in customers matches Verizon’s “worst result on record.”

The loss comes after Verizon issued several price hikes earlier this year, frustrating customers who are already battling inflation and higher costs of living.

During an earnings call on April 22, Verizon CEO Hans Vestberg admitted that recent price increases contributed to the startling decrease in customers during the quarter.

“We did have a slow start on postpaid phone net adds, largely driven by elevated churn due to recent price ups and pressure from federal government accounts,” said Vestberg.

Verizon advocates for waiving a Federal Communications Commission rule.

Image source: Mordant/Bloomberg via Getty Images

Verizon makes desperate attempt to retain customers

As Verizon struggles with fleeing customers, it is quietly pushing for the Trump administration to make it harder for customers to easily switch phone providers.

On May 19, Verizon officially submitted a request to the Federal Communications Commission to waive its requirement to follow its Unlocking Rule. The rule requires Verizon to automatically unlock a phone a customer purchases from it after 60 days, allowing that customer to use that device on another phone carrier's network.

Verizon was first required to adhere to the rule when it purchased licenses to use 700MHz spectrum in 2008 and acquired TracFone in 2021.

In the waiver request sent to the FCC, Verizon claims that the rule has had “unintended consequences” that have contributed to criminal activity.

“Recent industry experience shows that even a lock of 60 days does not deter device fraud – a huge and growing problem in the United States — and instead enables trafficking in devices that are illicitly sent to foreign marketplaces,” said Verizon in the request. “This is why the industry standard for providers not subject to the Unlocking Rule is a minimum of 6 months or longer.”

The company said that the Unlocking Rule “benefits bad actors and fraudsters” and shifts costs and denies benefits to low-income consumers, while “punishing” phone providers.

“Waiving this rule will benefit consumers because it will allow Verizon to continue offering subsidies and other mechanisms to make phones more affordable, lower upfront costs, and enable customers to obtain the latest and most innovative devices,” said Verizon.

Verizon previously pushed to fight this rule

The move from Verizon comes after FCC Chair Jessica Rosenworcel submitted a proposal last year that would require all phone providers to follow the Unlocking Rule.

“Real competition benefits from transparency and consistency,” said Rosenworcel in the proposal. “That is why we are proposing clear, nationwide mobile phone unlocking rules. When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice.”

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She said the proposed rule would increase competition between phone service providers, as consumers would have more choices. Rosenworcel added that it would also decrease the costs consumers face when switching providers and reduce overall confusion, as the same rules on unlocking would apply to all phone carriers.

In March last year, Verizon submitted a filing to the FCC claiming that the rule could negatively impact phone discounts.

“Requiring carriers to unlock their mobile wireless devices – which often contain software that prevents them from operating on another carrier’s network – allows consumers to switch providers more easily,” said Verizon in the filing. “At the same time, however, an unlocking requirement may discourage a carrier from deeply discounting a phone because it cannot recoup its subsidy if a customer immediately moves to another carrier.”

Verizon also said in the filing that the rule could also have “complex tradeoffs and consequences for consumers and carriers,” and that it is not clear that it would benefit consumers.

“Providers rely on device locks to sustain their ability to offer such subsidies,” said Verizon. “Device locking periods, in fact, may greatly benefit low-income consumers because they make devices more affordable, lowering the barrier to entry to mobile service.”