- Verizon is rolling out unusually aggressive holiday pricing to reverse postpaid losses and signal a reset under new CEO Dan Schulman
- Analysts see the $25/line offer as both attention-grabbing and potentially loss-making, though Verizon insists it’s a “win-win” that upsells customers to higher-tier plans
- Some expect these lower price points to stick – but analysts stress that long-term success hinges on value and differentiation, not discounts alone
The fourth quarter is always a super-busy time for wireless operators as consumers are filling their stockings with new phones and accessories. But it’s especially important for Verizon this year because its network and market leadership are under seize and some folks are hoping newly installed CEO Dan Schulman will pull a rabbit out of a hat.
Verizon historically offered the highest prices and bragged about its network superiority, but in the 5G era, T-Mobile has claimed the “best network” title and still says it offers the best “value,” aka prices. However, in this fourth quarter, Verizon is advertising a plan for $25/line/month for four lines, with flagship devices from Apple, Samsung and Google.
That’s turning some heads, with some analysts calling out Verizon’s new pricing as something akin to a financial loss. Others said it’s “a clear negative signal for the industry.” But on LinkedIn, Verizon Consumer Group CEO Sowmyanarayan Sampath responded that it is indeed a “win-win” for Verizon and its customers.
What exactly is going on here? The fourth quarter is typically when promotions run rabid. Verizon needs to turn its postpaid net adds from negative to positive, so is it really that surprising?
“I think this is aggressive for Verizon because they're usually definitely not the price leader. But I think, larger context, it's a holiday thing and things will return to normal in January,” said Jeff Moore, principal of Wave7 Research, which closely tracks carrier pricing.
Verizon is also inviting AT&T and T-Mobile customers to bring their phone bill into Verizon stores to “see how the savings add up.”
“That’s aggressive,” said Recon Analytics founder and analyst Roger Entner. “It gets people in the door.”
The average family size is fewer than four people, so the percentage who take that $25/line for up to four lines offer is small, Entner said. Generally, people will leave the store on a higher priced plan – or as Sampath put it: “Few customers actually take the offer as is … many see the value of our higher tier plans and upgrade.”
It’s worth noting as well that the $25/line offer is common at other operators – including T-Mobile – and in the prepaid space. “In that respect, they’re meeting the competition and refusing to be undersold,” Moore said.
New CEO, new plans
Under prior CEO Hans Vestberg, who was abruptly replaced by Schulman in October, Verizon was losing customers on a pretty steady basis and it raised prices, making customers even more angry.
“You have the confluence of Verizon having negative results that need to be turned around, plus the holidays, plus a new CEO,” Moore said. “Put those three together, and it’s the formula for stronger discounting.”
Entner sees the new pricing as a necessary step in Verizon’s turn-around. “This is a vicious cycle of your customers hating your more and more and running away,” Entner said. “They need to turn around the customer momentum.”
But Entner said Verizon has actually been “the price leader for quite some time. People just haven’t realized it.”
Will new rate plans linger after holidays?
In a blog post on Wednesday, LightShed Partners analysts said that some might argue that the lack of advertising around Verizon’s new rate plans signals that they’re short-lived promotions.
“But given the new pressure to deliver 700,000 postpaid subscriber net additions in 2026, we doubt these price points will vanish and instead expect more aggressive advertising of these, or lower, rates next year,” the analysts said.
Entner said time will tell how Verizon’s pricing strategy plays out next quarter and thereafter. But bottom line: The answer is not to simply cut price.
“It’s to drive value. Differentiation in the end is the answer,” he said. “Dan [Schulman] wants to fix this thing. He’s leading the way out of it. That’s the important part.”