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The Basking Ridge, N.J.-based company announced the policy to Congress who has been pressuring the wireless industry to end exclusive handset periods.

Lawmakers questions whether major carriers are hurting consumers by shutting out rivals from popular phones.

AT&T has a multi-year deal to carry Apple's iPhone, only Verizon offers the BlackBerry Storm and Sprint is the exclusive carrier with the Palm Pre until 2010.

Earlier this year, Verizon offered to shorten its exclusivity periods, but only for Samsung and LG handsets. Rural competitors called the offer insufficient.

Now, Verizon said it will modify its exclusivity deals with handset manufacturers so that smaller wireless carriers -- those with fewer than 500,000 customers -- can sell all phones after six months.

But its change only applies to the smallest carriers -- so mid-size rivals, such as U.S. Cellular and Virgin Mobile, are left out.

"Any new exclusively arrangement we enter with handset makers will last no longer than six months -- for all manufacturers and all devices," said Verizon Wireless's Chief Executive Lowell McAdam.

But he defended the practice of locking up phones with exclusive deals.

"Exclusivity arrangements promote competition and innovation in device development and design," said McAdam.

The concession comes at a time when exclusive handset deals are being reviewed by the Justice Department. Verizon's decision to concede a bit could put pressure on other wireless companies, notably AT&T, to follow suit.

Regulators are also examining whether carriers are unduly limiting the applications that they allow to run on their networks -- such as Internet calling service Skype and TV streaming software SlingPlayer Mobile.