Verizon simplifies wireless plans, drops fees to support customer retention in U.S. telecom market

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Verizon simplifies wireless plans

Highlights

Verizon launches a new loyalty program in July, offering 3% back on bills, removal of activation and upgrade fees, and rewards for all postpaid customers.
Verizon debuts the 'Simplicity' wireless plan eliminating network tiers and introduces bundled Mobility and Home plans with all taxes and fees included.
Verizon expects the new plan changes to be revenue-accretive without affecting its 2026 financial guidance, following a recent profit forecast increase and significant job cuts.

Plan overhaul and loyalty rollout

As reported by Reuters, Verizon says the new offering gives customers 3% back on bills from July, with rewards usable toward new phones or at brands including Sephora, Hilton, Marriott and Starbucks.

Alfonso Villanueva, interim CEO of Verizon Consumer Group and Verizon chief transformation officer, says the move is designed to make offers simpler and more flexible for customers. He tells Reuters the company is focused on creating a value proposition for every customer group and is convinced retention will be even higher.

Verizon says postpaid customers on all phone and connected device plans can opt in to the loyalty program and avoid activation and upgrade fees. It is also offering perks such as free Starbucks coffee, a Dunkin' Donuts treat and FIFA World Cup 2026 merchandise.

Its new "Simplicity" plan removes network tiers, while another plan combines Mobility and Home on one bill with taxes and fees included.

Competitive pressure and financial context

Verizon is competing aggressively with AT&T and T-Mobile, as carriers extend device subsidies, add plan discounts and keep spending on network infrastructure. Like AT&T, Verizon has leaned into discounted bundles that combine high-speed broadband and wireless services to improve customer retention.

T-Mobile has gained traction with loyalty perks, aggressive marketing and bundles that include Netflix, Apple TV and Hulu alongside five-year price guarantees. Verizon does not disclose how much Tuesday's changes will cost, but says they are expected to be accretive to revenue and will not change its 2026 financial guidance.

Under new CEO Dan Schulman, Verizon in April raises its annual profit forecast. Last month, the company cuts several hundred jobs after saying in November it was cutting more than 13,000.

Our earlier article on Ted Cruz’s push for enforceable spectrum buildout requirements covered growing regulatory scrutiny of Grain Management’s planned purchase of T-Mobile’s wireless licenses. We noted concerns that valuable airwaves could sit unused for years, intensifying the debate over tighter deployment obligations and public-interest conditions in future spectrum deals.

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