"Unlocking a phone allows it to be used with another carrier. Verizon, unlike other carriers, is required by the Federal Communications Commission to unlock phones shortly after they are activated on its network. Verizon gained significant benefits in exchange for agreeing to the unlocking requirement, first in 2008 when it purchased licenses to use 700 MHz spectrum that came with open access requirements and then in 2021 when it agreed to merger conditions to obtain approval for its purchase of TracFone."
""The best deals tend to be buying it from one of these MVNOs [Mobile Virtual Network Operators] and then activating it until it unlocks and then switching it to whatever you are planning to use it with. It usually saves you about half the value of the phone," Roach said in a phone interview."
Patrick Roach purchased a discounted iPhone 16e from Verizon's Straight Talk brand on February 28, 2025, planning to activate one month of service, cancel, and move the phone to US Mobile. Verizon is required by the Federal Communications Commission to unlock handsets 60 days after activation, a condition tied to spectrum purchases and merger approvals in 2008 and 2021. Verizon refused to unlock Roach's phone after changing its policy post-purchase. Roach sued Verizon in small claims court and won. Unlocking allows phones to be used with other carriers and MVNO purchase strategies can substantially reduce phone costs.
Read at Ars Technica
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