Dean Drobot, Grok Major Blow for Verizon: They End Up Sunk After This Change
Verizon Records a Significant Loss of Customers After the Latest Increases Applied to Their Rates
Verizon isn't starting 2025 well. What seemed like a strategy to boost its revenue has ended up becoming a serious problem. The company has lost nearly 300,000 postpaid customer lines just in the first quarter of the year.
It all began in early 2025, when it decided to move forward with an unpopular policy. Basically raising the prices of several of its mobile services. In January, it announced that its myPlan and New Verizon Plan would have a monthly increase, justifying it by the rise in operating costs.
This was just the beginning. Shortly after, in March, the company once again hit its users' pockets.
This time, it increased the prices of its mobile device protection plans, like Verizon Mobile Protect Multi-Device and Verizon Mobile Secure Multi-Device, by $8. These plans are used by families or businesses with between four and 20 phone lines.
The news didn't sit well with customers, who quickly showed their discontent on social media. Many expressed their frustration and some even threatened to leave.
Verizon Has to Face the Harsh Reality
The blow didn't take long to arrive. In its recent financial report, Verizon confirmed that it had lost a total of 289,000 postpaid lines in just three months. This figure coincides, according to analysts from New Street Research, with the worst result recorded by the company to date.
Despite this, Verizon managed to increase its wireless revenue by 2.7% year-over-year, reaching $20.8 billion. But the economic growth doesn't manage to hide the customer exodus.
Verizon's own CEO admitted that the recent price hikes were one of the main causes of this user loss. He recently explained that the start of the year was complicated and that many customers decided to leave due to the new prices.
Even so, the company's management doesn't seem to regret it. Sam Path, CEO of Verizon's Customer Group, assured that raising prices was the best possible decision. According to him, this ensures more stable revenue for the rest of the year.
More Problems for Verizon Customers
But the story doesn't end there. Verizon also issues an important warning. Mobile device prices could continue to rise, this time due to tariffs imposed during Donald Trump's administration.
These taxes, applied to imported products, could be passed on to the end customer. "We don't plan to absorb those costs," said the company's CEO. It means "a lot of money and will have to be passed on to customers," he admitted.
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