A year ago, Verizon stood as one of the most stable forces in the U.S. wireless industry. By Q4 2025, that stability had faded. A rapid series of price increases pushed customers away at an unprecedented pace, erasing roughly $ 15 billion in market value.
Verizon’s revenue slipped from a peak of about $ 187 billion in mid-2024 to around $ 173 billion by the beginning of November, triggering an urgent leadership shakeup. Analysts were surprised by how quickly the company’s position weakened.
Here is a closer look at what unfolded and why Verizon is now racing to rebuild trust.
What Triggered Verizon’s Sudden Decline
In only twelve months, Verizon went from modest growth to sharp contraction. The company’s postpaid customer base increased by 18,000 in the third quarter of 2024, but declined by 7,000 in the same period of 2025. Churn reached 0.91% in Q3 2025, indicating that customer frustration was on the rise.
At the same time, cable competitors such as Charter, Comcast, and Altice USA collected 886,000 new wireless customers in the first quarter of 2025. It marked the first time cable companies surpassed Verizon’s annual postpaid growth in a single quarter.
The first quarter of 2025 revealed deeper trouble. Verizon lost 289,000 postpaid customers, more than double the losses from the previous year and its worst result since 2017. “Recent pricing actions were a significant factor,” CFO Tony Skiadas said on the Q1 2025 earnings call, confirming what customers were experiencing firsthand.
Why Price Hikes Sparked a Customer Revolt
Verizon’s pricing decisions throughout 2025 drove customers away in growing numbers. Beginning in February, monthly plan prices rose by three to fifteen dollars, depending on the tier. In March, the Mobile Protect plan increased from $60 to $68 per month.
Device activation fees increased from $35 to $40 in August. Additional tablet and administrative fee hikes followed in September. Longstanding loyalty discounts of $10 to $40 were removed for many subscribers.
These changes created widespread frustration. “For the past few years, our financial growth has relied too heavily on price increases… This cannot continue, and there is no question that meaningful change is needed,” said new CEO Dan Schulman on October 29, 2025.
Customers responded by canceling service at record levels. Many cited bills that no longer felt manageable or predictable. For households that had relied on discounts for years, the sudden increases created a sense of instability, prompting them to seek alternatives.
The Human Impact Behind Rising Wireless Bills
The effect on families was significant. A 2025 WhistleOut study found that the average American family with unlimited data now pays $244 per month or $2,928 per year. The study also reported that 83.2 million U.S. households overspend on wireless service. It found that 42 percent of Verizon, T Mobile, and AT&T customers saw their monthly bills rise, with some paying about 7 percent above the industry average.
Across the country, excess spending on wireless services may reach $ 243 billion annually. Many customers expressed frustration with Verizon’s new prices. “They charge double the cost and for what?” wrote one departing user on the company’s community forum. Employees noted that multi-line discounts had been critical for retention.
For some families, the rising bills created emotional stress and difficult financial choices. These stories highlighted how pricing decisions can influence both household budgets and long-term loyalty.
A Leadership Shakeup and a High-Stakes Course Correction
Verizon’s losses led to fast changes in leadership. On October 6, 2025, Dan Schulman, a former PayPal executive and Verizon board member, replaced Hans Vestberg as CEO. Speaking on October 29 during his first earnings call, Schulman acknowledged the severity of the situation.
“Despite investing significantly in network leadership, we have not been able to translate that into winning in the market… Every year, it gets harder to grow as we lap past price increases and experience higher churn.”
Schulman identified four primary causes of the customer exodus. These included rising prices, service friction, a weak value perception, and stronger competition from cable operators and MVNOs. He pledged a company-wide transformation.
Plans include expanded use of AI, simplification of legacy operations, broader efficiency efforts, and significant cost reductions. That includes about fifteen thousand job cuts announced this month. “There is no silver bullet,” Schulman warned, noting that real progress will take time.
Cable’s Wireless Gains and New Competitive Pressure
Cable operators have become significant rivals in the wireless industry. Charter, Comcast, and Altice USA collectively added 886,000 mobile customers in the first quarter of 2025. Charter alone added 514,000 lines, surpassing T Mobile’s 495,000 additions during the same period.
Cable companies now operate between 18 and 19 million mobile lines nationwide. Because many broadband households have not yet added wireless service, analysts see room for further growth.
These gains are possible due to MVNO agreements that enable cable firms to operate wireless services using Verizon’s own network. This enables cable operators to compete with lower prices while benefiting from robust nationwide coverage.
Five-year price lock guarantees have also played a significant role in attracting customers who are frustrated with the fluctuating costs of wireless bills. This strategy has reshaped expectations across the industry and challenged traditional carriers to rethink how they price and market their plans.
Conclusion: A Market Transformed and a Long Road Ahead
Verizon’s rapid decline signals more profound shifts in the U.S. wireless industry. Price increases that once lifted short-term revenue ultimately weakened customer confidence and opened the door for aggressive competition. Cable companies expanded quickly with lower prices and more predictable terms. MVNOs continued to grow as consumers looked for flexibility and transparency.
Verizon now faces a critical moment. Schulman’s turnaround plan relies on rebuilding trust, enhancing customer value, and streamlining service in a market where expectations are continually rising.
The stakes reach far beyond Verizon’s financial performance. Wireless service has become a central and unavoidable household expense. Every billing change affects families who rely on mobile service for work, school, and daily life.
Verizon’s next decisions will shape how carriers approach pricing, how cable companies continue their expansion, and how customers assess value in a crowded market. The company’s future will depend on its ability to respond to this new era of choice and accountability.