Verizon CEO sounds alarm on why customers are leaving in droves

Verizon reported a net loss of 7,000 postpaid phone customers in Q3 2025, with churn reaching 0.91%, attributed to multiple price increases implemented throughout the year. New CEO Dan Schulman acknowledged that relying on price hikes without subscriber growth is an unsustainable strategy that has led to underperformance and higher churn. He outlined a strategic shift to prioritize customer loyalty and retention, simplify offers, and leverage AI to enhance customer experience and reduce costs, moving away from easily imitable promotional activities, amidst intensifying competition from cable providers.

Analysis

Verizon reported a net loss of 7,000 postpaid phone customers in Q3 2025, with churn elevating to 0.91%, a significant reversal from the 18,000 customer additions in Q3 2024. This decline is directly linked to multiple price increases implemented throughout 2025, including hikes on monthly plans, protection services, and activation fees, which have frustrated customers. The company's reliance on these price adjustments without corresponding value has led to underperformance and elevated churn.

New CEO Dan Schulman, appointed October 6, openly acknowledged Verizon is "clearly falling short" and failing to deliver expected shareholder returns. He identified unsustainable price increases, poor customer experience, and intense competition as key drivers of customer attrition. Schulman stated that past reliance on price hikes was a "bad idea" and not a sustainable strategy for growth.

Schulman's new strategy emphasizes building customer loyalty, improving retention, and simplifying offerings, moving away from easily imitable promotional activities. He plans to leverage AI to transform the customer experience, reduce churn, and improve operational efficiency. This strategic pivot comes amidst a challenging market where 58% of major carrier customers are considering switching due to rising costs, and cable providers like Spectrum and Comcast are gaining significant market share, adding 886,000 new phone customers in Q1 2025.

Key Decisions for Investors

• Investors should closely monitor the execution and initial results of CEO Schulman's customer-centric transformation strategy, particularly the impact of AI initiatives on churn and operational efficiency.
• Evaluate Verizon's ability to stem customer losses and regain market share against aggressive competition from cable providers, as the current negative sentiment and churn trends indicate significant headwinds.
• Consider the long-term implications of the strategic shift away from price-led growth, assessing whether the company can achieve sustainable subscriber growth and improved shareholder returns without relying on past tactics.