Verizon drops activation and upgrade fees with new simplified plans
Fox Business • • business
Key Points:
- Verizon is launching new "Simplicity" plans that eliminate activation and upgrade fees, combine Mobility and Home services on one bill, and include taxes and fees to attract and retain customers.
- The company is introducing a loyalty program offering 3% back on bills starting in July, redeemable for new phones or purchases at brands like Sephora, Hilton, Marriott, and Starbucks, alongside perks such as free Starbucks coffee and FIFA World Cup merchandise.
- Verizon aims to compete aggressively with AT&T and T-Mobile, who have been offering device subsidies, plan discounts, and bundled services to gain market share.
- Despite these changes, Verizon maintains its 2026 financial guidance and expects the new initiatives to be revenue accretive, reflecting confidence in customer retention improvements.
- Under new CEO Dan Schulman, Verizon raised its annual profit forecast in April but recently cut several hundred jobs as part of broader cost management efforts.
