Verizon (VZ) , the largest mobile network in the U.S., is continuing to see large numbers of customers cut the cord on phone service, despite recent efforts to keep them from leaving.
In its latest earnings report, Verizon revealed that while it added about 300,000 new phone and internet customers during the second quarter of 2025, its wireless postpaid phone churn (the number of customers who ended phone service) remained at 0.9%, compared to the previous quarter.
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The continued loss of customers comes after Verizon hiked the monthly rates for myPlan and New Verizon Plan accounts in January.
Related: T-Mobile announces generous offer for conflicted customers
It also increased the monthly price of its Verizon Mobile Protect Multi-Device plan and Verizon Mobile Secure Multi-Device plan by $8 in March.
To win back customers frustrated with price hikes, Verizon announced a new three-year price lock guarantee earlier this year.
It also reportedly began offering select customers free phone lines in March, and last month, it announced a new bundle in which customers with a myPlan mobile account can obtain a smartphone, tablet, and smartwatch when they trade in an eligible phone.
Verizon has recently lost customers.
Image source: Morris/Bloomberg via Getty Images
Verizon CEO sounds alarm on the source of the problem
During an earnings call on July 21, Verizon CEO Hans Vestberg said that elevated promotional activity from competitors and other factors contributed to the continued loss of customers.
“The wireless market remains competitive, and we continue to take a strategic approach,” said Vestberg. “As expected, postpaid churn remained elevated this quarter, reflecting the lingering effects of our pricing actions and ongoing pressure from federal government accounts.”
Verizon’s top competitors, such as T-Mobile and AT&T have recently been ramping up generous perks and trade-in offers to attract new customers.
For example, earlier this month, T-Mobile began offering customers a free DoorDash subscription (DashPass) through its T-Life app. Last month, AT&T introduced a new low-priced phone plan for customers who are 55 years old and up.
Verizon bets big on major changes to lure back customers
During the call, Verizon Chief Financial Officer Tony Skiadas emphasized that the company is doubling down on improving its customers’ “loyalty and retention” by providing them with more personalized support and value.
“We have taken a series of actions to address our elevated churn,” said Skiadas. “On June 24th, we launched initiatives designed to improve the customer experience, including leveraging AI for more personalized support. In addition, we continue to enhance our value proposition and build customer loyalty through the best value guarantee. We provide exclusive access to the best events and experiences, and our Refresh app helps customers maximize the value of their plans.”
Related: Verizon’s move to slow down fleeing customers raises alarm bells
Vesterg said Verizon’s recent decision to use artificial intelligence for customer support and extend its customer service hours to 24/7 allows its employees to follow a request or complaint from customers “all the way,” addressing a major pain point.
He also said that since 93% of the U.S. population is less than 30 minutes away from a Verizon store, the company will also focus on leveraging its locations to provide more support and help to customers.
“We leverage all the assets and all our employees to see that we’re treating our customer better,” said Vestberg. “And I think it’s an area we can excel in.”
Verizon faces an unexpected new threat
The increased focus on customer loyalty and retention comes as Verizon and other phone carriers face increased competition from cable companies, which have surprisingly generated an increased number of phone customers this year.
Cable giants have recently been offering customers bundle options on TV, mobile, and internet, allowing them to save money on these services.
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According to a recent report from MoffettNathanson, Spectrum, Comcast, and Altice USA added 886,000 new phone customers during the first three months of 2025, up from the 804,000 they added during the same time period last year.
It is no surprise that customers are flocking to cable companies to take advantage of discounted phone services since phone bills increased nationwide last year.
According to a recent report from Doxo, the average amount of money 94% of Americans spent on phone bills per month last year is $121, a 2% increase from what they spent monthly in 2023.