However, the mobile internet remained suspended across the valley, the officials said.
The mobile phone services have been restored across the Kashmir valley, they said, adding the decision was taken in view of the improving situation.
The officials said the decision to restore the mobile internet services would be taken at an appropriate time after assessing the situation.
The authorities had snapped mobile phone services, except on BSNL postpaid, and 2G mobile internet across the Kashmir Valley after Naikoo was killed in an encounter with security forces in Pulwama district of South Kashmir on Wednesday.
It happened days after five security personnel were martyred in Jammu and Kashmir's Handwara encounter.
Naikoo was listed in the category of "A++" militants and was among the most wanted terrorists in Kashmir for several years.
Watch: Indian Army ramps up actions against terrorists in Kashmir | Sansani