Verizon’s major network outage sparks new fallout after backlash | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Last month, Verizon sparked a social media firestorm after a major network outage left millions of its customers without service for about 10 hours. While the outage threatened customer loyalty, Verizon now faces a new challenge as it works to rebuild its reputation.

During the Jan. 14 outage, many Verizon customers took to social media, threatening to switch carriers. Their phones had been put into SOS-only mode when the company’s network went down across states such as Texas, Georgia, New York, and California.

This is the last thing Verizon needed, as it is already seeing elevated churn in its wireless business amid customer backlash over price increases last year. A recent survey from WhistleOut even found that due to high phone plan pricing, Verizon risks losing 84.7 million customers.

As Verizon struggled to quickly fix the outage, it apologized to customers on social media platform X (formerly Twitter), vowing to “make this right” for those affected.

“Today, we let many of our customers down and for that, we are truly sorry,” said Verizon in the post. “They expect more from us.”

Shortly after the outage was resolved, Verizon rolled out a $20 credit to affected customers and reportedly raised it for some who requested the credit through customer service.

“This credit isn’t meant to make up for what happened,” said Verizon in a statement on its website. “No credit really can. But it’s a way of acknowledging our customers’ time and showing that this matters to us.”

Verizon’s network outage last month affected millions, prompting a new investigation.

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Verizon outage sparks FCC probe

In a separate statement, Verizon blamed the outage on a software issue and said that it was “conducting a full review of what happened.”

However, the Federal Communications Commission’s Safety and Homeland Security Bureau is now launching its own investigation and is asking Verizon customers for help.

In a recent public note, the FCC said it is inviting Verizon customers to “provide all relevant information concerning the effects of the outage, particularly on 911 calling and public safety.”

“We seek comment from the public on the outage’s impact on individual and enterprise consumers,” said the FCC in the public note.

The FCC is investigating how many customers were able to make calls and texts during the outage. It also wants to know how long each customer was without network connectivity and the impact on businesses and providers of critical services, such as hospitals.

The FCC is also looking into whether any harm or injury resulted from a customer’s inability to reach 911 during the outage. It is also seeking information about how Verizon handled the outage and if the phone carrier’s communication about it was “appropriate, timely, and effective.”

Verizon customers can submit their stories on their outage experience to [email protected]. Customers have until March 16, 2026, to submit a comment.

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In a statement to TheStreet, RTMNexus CEO Dominick Miserandino said the FCC is looking beyond Verizon’s apology for the outage and the account credits that were issued to customers; it is solely seeking to identify systemic failures.

“The FCC isn’t investigating Verizon’s apology,” said Miserandino. “It’s investigating whether a ‘most reliable network’ failed in a way that points to systemic issues. Credits fix customer sentiment in the short term; transparency and resilience protect trust in the long term.”

Verizon falls behind rivals as CEO targets customer loyalty

The Verizon outage and the resulting FCC investigation come at a critical time for the company. It is currently doubling down on customer retention under new CEO Dan Schulman, after the company lost 2.25 million postpaid phone customers over three years, a loss he claims is due to price increases and competition.

“There’s no question that Verizon is at a critical inflection point, and there is no doubt that we must radically shift our culture towards the goal of delighting our customers and building a brand that stands for trust so that we can deliver for our shareholders,” said Schulman earnings call on Jan. 30.

This shift comes as Verizon is falling behind major competitors in consumer satisfaction, a recent J.D. Power survey found.

Wireless carrier satisfaction rates:

On average, the wireless carrier satisfaction score for postpaid plans under traditional carriers is 603 (on a 1,000-point scale).
T-Mobile ranks the No. 1 in the segment with a 631 satisfaction score.
Verizon lands in second place with a satisfaction score of 593.
AT&T falls behind Verizon with a 587 score.
MVNOs, however, have an average satisfaction score of 630, with Consumer Cellular and Google Fi Wireless having scores of 721 and 685, respectively. Source: J.D. Power

“Attracting customers with network quality and pricing is just the first step,” said Carl Lepper, senior director of technology, media and telecom at J.D. Power, in a press release. “True loyalty comes from how easy it is for customers to work with a carrier once they’re in the system, especially when it comes to resolving issues, managing bills and getting answers quickly.

“These experiences drive advocacy and long-term retention,” he continued. “When interactions are effortless, it shows in low churn and high satisfaction. For wireless carriers, the best strategy is simple: take care of the customers they already have.”