Verizon Gets Handset Locking Waiver From FCC Wireless Bureau

Verizon got the partial waiver it was seeking to adopt a temporary, 60-day lock on 4G LTE handsets to ensure bona fide customers buy the handsets. Verizon faces special restrictions because of rules for the 700 C-block spectrum the carrier bought at auction. “We deny Verizon’s request for a declaratory ruling, because we are not persuaded that Verizon’s interpretation of section 27.16(e) is accurate,” the bureau said. “We do, however, find that the limited waiver of the unlocking requirement that Verizon requests would serve the public interest and therefore grant Verizon’s request for a partial waiver.” The bureau said strict compliance with the unlocking requirement would be “inconsistent with the public interest because it facilitates and may even encourage fraud.” In March, the bureau sought comment on the request (see 1903050057). The order noted rural carriers, T-Mobile and others objected. NTIA suggests “we consider requiring Verizon to unlock its handsets as soon as the first payment is successfully processed or immediately upon purchase ‘in situations where the fraud risk is low, such as in the case of long-time customers who acquire new handsets for use with existing service,’” the bureau said: “Verizon, however, responds that 60 days is the minimum necessary to accomplish the purpose of the temporary unlocking, in order to allow for the amount of time it takes to receive and process customer payments, to identify fraud via checks from accounts with insufficient funds or stolen debit or credit cards, and to obtain information.” Tuesday's order was on docket 06-150.