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Verizon to Cut Loyalty Discounts and Raise Fees in September

Customer backlash highlights potential for accelerated subscriber departures under Verizon’s fee-driven revenue overhaul.

Verizon might regret what it did to its most loyal base
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Bad news for Verizon customers this week.
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Overview

  • Beginning September 1, Verizon will phase out legacy loyalty discounts of $10 to $25 per line to encourage customers to switch to its three-year price-locked myPlan and myHome offerings.
  • Activation fees will increase from $35 to $45, monthly tablet plan rates will rise by $5, and administrative fees for data-only lines will almost double.
  • In Q2, the carrier added about 300,000 net new phone and internet customers but reported a 0.9% postpaid churn rate that CEO Hans Vestberg linked to its pricing actions.
  • Outrage on Reddit and other forums shows many long-time subscribers threatening to move their lines to T-Mobile, AT&T or MVNOs over the upcoming changes.
  • Verizon is internally exploring a replacement loyalty discount program to stem defections, but details and launch timing remain unconfirmed.