Published: July 3, 2025
By AGL Information and Technology Staff Writers
The Federal Communications Commission (FCC) has opened public comment proceedings on two significant Verizon filings: a request for waiver of handset unlocking rules following its acquisition of Tracfone, and the proposed assignment of multiple wireless spectrum licenses from UScellular to Verizon as part of UScellular’s planned exit from the mobile wireless market. The proceedings, initiated in late June 2025, reflect the agency’s focus on balancing competitive impacts and consumer protection in a rapidly consolidating wireless sector.
Verizon acquired Tracfone, the largest U.S. prepaid mobile provider, in a deal finalized in November 2021. As part of that transaction’s approval conditions, Verizon committed to maintaining and expanding affordable connectivity options for Tracfone’s customer base. The company has now filed a request with the FCC for a waiver of existing handset unlocking rules to implement an alternative device unlocking approach, it claims will streamline customer experiences across Tracfone and Verizon brands.
Simultaneously, UScellular has begun the process of exiting the consumer mobile wireless market through asset sales to major carriers. On June 24, Verizon filed applications to assume multiple UScellular spectrum licenses across various bands, including AWS-3 and 700 MHz licenses, in regions where Verizon seeks to enhance its midband and low-band coverage.
In its handset unlocking waiver request (WT Docket No. 23-170), Verizon argues that its proposed unlocking policy maintains compliance with the spirit of the existing rules while accommodating the technical and logistical complexities of integrating Tracfone’s diverse device base into Verizon’s network. Public interest groups such as Public Knowledge have previously emphasized the importance of robust unlocking policies to ensure consumer choice and competition in the prepaid market segment.
Regarding the UScellular license assignments (WT Docket No. 25-128), Verizon has proposed acquiring spectrum licenses spanning multiple states, bolstering its rural and suburban coverage as it competes with AT&T and T-Mobile in ongoing 5G deployment. The FCC’s review will assess whether these transactions unduly concentrate spectrum holdings, which could potentially limit market competition.
“The Commission’s review of these applications is critical to maintaining competitive market dynamics while ensuring consumers retain flexibility in device usage and network choice,” said a spokesperson from the Open Technology Institute, noting concerns over vertical integration risks following Verizon’s Tracfone acquisition.
Approval of Verizon’s handset unlocking waiver could set a precedent for future policy exceptions by large carriers integrating prepaid subsidiaries, potentially raising consumer protection questions around device portability.
For the spectrum transfers, Verizon’s acquisition of UScellular’s licenses would solidify its mid-band and low-band spectrum holdings, supporting improved rural coverage and indoor penetration, which are critical for advanced LTE and 5G services. However, competitors and advocacy groups may challenge the assignments if they are perceived to threaten market diversity or violate spectrum aggregation limits.
UScellular’s exit underscores broader industry consolidation trends, with smaller regional carriers facing competitive pressures that drive divestiture or acquisition by national incumbents.
The FCC’s dual proceedings on Verizon’s handset unlocking waiver request and UScellular spectrum license transfers represent pivotal decisions shaping wireless market competitiveness, consumer device freedom, and spectrum resource allocation. Stakeholders are expected to file comments over the coming weeks, with final Commission decisions likely to be made later this year.
