Verizon adds generous offers for customers after price increase

Verizon has dropped two new generous offers for customers after it quietly raised the price of its Unlimited Ultimate phone plan, a move that comes as more U.S. consumers are switching carriers to escape rising costs.

On May 7, Verizon’s Unlimited Ultimate plan, which has a three-year price lock guarantee, increased by $5.

In a statement to Droid Life, the company said the price increase applies only to new customers considering joining the plan. It also said the plan now includes “added monthly value.”

“Customers who subscribe to our new Unlimited Ultimate plan will get access to two new features – Identity Secure and Verizon Family Plus – providing an additional $15 in added monthly value for just $5,” said Verizon in the statement.

The rate adjustment comes after Verizon CEO Dan Schulman said during an earnings call in January that postpaid phone churn (the percentage of postpaid phone customers who canceled service) increased by 25 basis points over three years, mainly due to price hikes.

In response to the customer losses, he said that the company would start adding value to price increases.

“Price increases without corresponding value,” said Schulman. “That just irritates some customers, and we’ve seen the churn rise as a result of that, and we’ve stopped doing that, and we’re going to start adding value to it.”

Verizon rolls out two limited-time offers for customers 

Now, it appears that Verizon is standing firm on its goal. To prevent consumers from flocking towards competitors after the latest price hike, Verizon is making it more affordable for customers to add a line to its network.

The carrier is waiving its $40 activation fee for customers who add a new device line or bring their own device on an Unlimited Welcome, Unlimited Plus or Unlimited Ultimate plan, according to its website.

Related: Verizon CEO doubles down on removing free offers for customers

The deal is exclusive to customers who add new lines online. Also, while customers will still encounter the $40 activation fee at checkout, Verizon will reimburse the charge within one or two billing cycles as a one-time bill credit.

In addition to waiving its activation fee, Verizon is sweetening the deal for customers by offering a $100 Verizon e-Gift card to those who purchase a new smartphone and add a new line to any of its three Unlimited plans.

The offer is also an online exclusive, and to secure it, customers must submit a redemption claim within 60 days of placing their order. Then, they will receive the gift card via email within eight weeks.

Verizon faces increased competition and consumer switching

The latest move from Verizon comes shortly after Schulman said during an earnings call last month that the company is scaling back promotional offers to help boost revenue growth. This change includes pulling the plug on free-line offers

“Our new accounts are being added with more lines per account, or percent of new to Verizon continues to climb, and that’s a leading indicator of where our account number is headed next,” said Schulman. “But we’re also very focused on driving higher revenue with every line. We are no longer giving away lines for free.”

The change from Verizon could be risky as the fight for consumer dollars in the wireless industry has intensified over the past year.

More Verizon News:

MoffettNathanson analyst Craig Moffett said in a report in January, which was obtained by Investor’s Business Daily, that wireless carriers are doubling down on promotions to lure new customers as competition increases.

“It seems all but irrefutable that competitive intensity is rising,” said Moffett. “Promotionality is increasing and handset upgrade rates are rising. Both contribute to promotional amortization, which directly reduces average revenue per user.”

More consumers across the country are seeking lower prices and greater value from wireless service providers.

This shift is leading to increased switching behavior, making customer loyalty harder to achieve in the wireless industry, according to a Market Force Information survey from last year.

U.S. consumer sentiment surrounding Verizon’s wireless service: 

• Verizon customers reported the highest average wireless bills in the survey, paying more than $157 per month.

• Nearly one-quarter of Verizon customers said they may switch providers within one to two years, with pricing, promotions, offers, and network coverage as the biggest factors influencing those decisions.

• Verizon received a 40% score for overall brand performance across several customer experience categories.

• Verizon also ranked belowthe 25th percentile in consumer trust.

• Smaller carriers outperformed many larger rivals in overall brand performance. Consumer Cellular posted a 73% score and Mint Mobile received a 65.8%.
  Source: Market Force Information

In a press release, David Murray, senior director of client strategy at Market Force Information, said consumer priorities are increasingly shifting beyond just pricing and coverage alone.

“There’s a clear shift in the market towards smaller, more agile wireless carriers who are delivering superior customer experiences,” said Murray.”While cost and coverage are always key factors, today’s consumers are placing more importance on ease of service and overall satisfaction with their provider.”

Related: Verizon makes surprising phone plan change that could backfire

This story was originally published by TheStreet on May 16, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.