Verizon allegedly reduces rewards for loyal customers following fee hikes
Verizon Raises Fees and Eliminates Loyalty Discounts, Causing Customer Unrest
In a move that may further alienate Verizon customers, the telecommunications giant has announced changes to its subscription plans, including the introduction of the myPlan subscription and the removal of loyalty discounts starting September 1, 2025. These changes could increase customers' monthly bills by $10 to $25 per line, according to reports.
The information about the fee increases and discount removal was confirmed by Verizon to Tom's Guide. However, the company has yet to provide any comment regarding these changes.
The removal of loyalty discounts and the fee increases are being criticized for penalizing loyal customers. Some Verizon customers, who received an email about their account discounts ending, are considering switching to T-Mobile or AT&T.
Despite these changes, Verizon is encouraging customers on older plans to switch to its myPlan subscription, which is presented as offering the best value and experience from Verizon. The email from Verizon to customers reportedly encourages them to check out the myPlan options.
However, there is no information provided about any new benefits or incentives offered with the myPlan subscription. The email does not provide information about potential fee increases for services besides activations, phone lines, and tablet plans.
The changes are causing customer unhappiness, with some customers expressing their dissatisfaction on social media. The removal of loyalty discounts may be seen as a way to persuade customers to switch to the myPlan subscription.
In contrast, T-Mobile and AT&T appear to be benefiting from Verizon’s losses without any clear evidence they have adjusted their own loyalty discounts or fees in reaction. Customers leaving Verizon have mentioned porting their lines to T-Mobile or AT&T because of the loyalty discount removals and increased fees.
As of now, there is no comment from T-Mobile or AT&T regarding their response to Verizon's changes. The search results do not show any direct mention of T-Mobile or AT&T changing their own pricing or discount policies in response to Verizon’s moves.
In conclusion, Verizon is raising fees for activations, phone lines, and tablet plans starting September 1, and is removing loyalty discounts for some customers starting no sooner than September 1, 2025. These changes are causing customer dissatisfaction and subscriber losses to competitors. However, T-Mobile and AT&T appear to be benefiting from Verizon’s losses without any clear evidence they have adjusted their own loyalty discounts or fees in reaction.
- Google's AI could potentially revolutionize the finance sector by predicting customer churn and suggesting personalized retention strategies, thereby reducing subscriber losses for companies like Verizon in the face of fee increases and discount removals.
- In the broader context of technology and business, these changes by Verizon in their subscription plans could spur other tech companies to reevaluate their own loyalty programs and pricing structures, with AI playing a key role in identifying profitable customer segments and optimizing strategies for retention.
- As Verizon faces criticism for their moves, artificial intelligence and machine learning in business and finance could provide insights needed to improve customer relationships, possibly leading to the development of innovative tech solutions aimed at minimizing customer churn and enhancing customer loyalty.
