Verizon unveiled a package of changes intended to simplify its wireless offerings and make its pricing more flexible for customers, removing certain fees and launching a loyalty program that provides discounts and perks.
The new program, which takes effect in July, will return 3% on customer bills. That credit can be used toward buying new phones or redeemed at consumer brands cited by the company, including Sephora, Hilton, Marriott and Starbucks. The carrier said postpaid customers on all phone and connected device plans may opt in and avoid activation and upgrade fees.
Alfonso Villanueva, interim CEO of Verizon Consumer Group and Verizon chief transformation officer, described the initiative as an effort to simplify and add flexibility for customers. "How do we create a value proposition that makes sense for every cohort?" Villanueva said in an interview. He added, "We are convinced that our retention will be even higher."
Verizon also highlighted a set of perks tied to the program, such as free coffee at Starbucks, a treat from Dunkin' Donuts or FIFA World Cup 2026 merchandise for eligible customers. As part of the product changes, the company will introduce a new plan called "Simplicity" that removes network tiers, and another plan that combines Mobility and Home on a single bill with taxes and fees included.
The moves come amid intense competition in the U.S. telecom market. Verizon, AT&T and T-Mobile have been responding to market saturation by extending device subsidies, increasing plan discounts and investing more in network infrastructure. T-Mobile has notably emphasized loyalty programs and bundled services that include partners such as Netflix, Apple TV and Hulu, sometimes combined with multi-year price guarantees.
Under CEO Dan Schulman, Verizon raised its annual profit forecast in April. The company did not disclose the exact cost of the loyalty program and plan simplifications but said the measures are expected to be accretive to revenue. Verizon also stated that the program should not change its 2026 financial guidance.
Recent personnel moves at Verizon were noted in the company update: last month it cut several hundred jobs, following a November announcement that it would reduce its workforce by more than 13,000.
Context and potential impacts
Verizon framed the package of changes as an effort to present a clearer value proposition to a range of customer cohorts, while reducing friction around device activations and upgrades. The company expects that the combination of simpler plans, fee waivers for opting-in postpaid customers and loyalty rewards will support customer retention and deliver revenue benefits.
Management did not provide a dollar estimate for the program's near-term cost, only indicating an expectation that the initiatives will be revenue accretive and will not alter full-year 2026 guidance.