Verizon steps into the 'Un-carrier' role for the holidays
Verizon's aggressive holiday deals undercut those from T-Mobile.
Verizon's holiday plans are undercutting T-Mobile's, prompting prominent industry watchers like Avi Greengart and Mike Dano to wonder if it's the new price leader.
Greengart, founder and lead analyst at Techsponential, notes that Verizon has responded to customer losses with such aggressive promotions that it's apparently making a loss on them.
According to his estimates, Verizon is losing $640 per account with its holiday promos with hopes of retaining customers for the long haul. If a customer stays long enough and purchases add-ons, the strategy may prove profitable. But for now, Verizon is chasing unprofitable growth.
Regardless of whether the bet pays off, Verizon is now offering bigger discounts than T-Mobile at multiple price tiers, making it the discount provider, according to analysts at KeyBanc. That's notable because the reverse used to be true.
Even if the company is incurring a loss on its latest promotions or breaking even, the step will eventually prove to be profitable. That's because, as Recon Analytics' Roger Entner points out, a customer typically stays with a carrier for 10 years and upgrades their phone every four years. Verizon's price lock guarantee allows it to raise prices after three years.
Verizon's new CEO, Daniel Schulman's contract expires in 2027, leaving him only two years to turn the carrier's fortunes around. This urgency likely explains why he wasted no time in going for T-Mobile's jugular.
While Verizon's new deals might offer more value than T-Mobile's, it's still the priciest carrier on a per-month basis. Numerous price hikes caused customers to leave, so it remains to be seen if deep discounts alone will be enough to turn the tide.
Verizon did have a great Thanksgiving holiday, so the situation may have started turning around already. Is this a prelude to a full-blown price war? Only Q1 (or Q2) will tell.
Verizon's holiday pricing isn't premium
Greengart, founder and lead analyst at Techsponential, notes that Verizon has responded to customer losses with such aggressive promotions that it's apparently making a loss on them.
Verizon seems to view paying for unprofitable growth as being better than losing subscribers.
Avi Greengart, Techsponential founder, December 2025
According to his estimates, Verizon is losing $640 per account with its holiday promos with hopes of retaining customers for the long haul. If a customer stays long enough and purchases add-ons, the strategy may prove profitable. But for now, Verizon is chasing unprofitable growth.
Sowmyanarayan Sampath, CEO of Verizon Consumer, responded to Greengart explaining that in the long run, these promotions are a win-win situation for the carrier and its customers. That's because most subscribers usually go for the higher-tier plans. Not only do these plans bring more revenue to Verizon, but customers on them are also more likely to purchase optional extras.
Regardless of whether the bet pays off, Verizon is now offering bigger discounts than T-Mobile at multiple price tiers, making it the discount provider, according to analysts at KeyBanc. That's notable because the reverse used to be true.
Verizon's pricing now appears to represent a discount to T-Mobile at the high-tier, middle-tier, and effectively the low end of the market, where Verizon is now effectively the discount provider.
KeyBanc analysts, December 2025
Verizon is playing its cards right
Even if the company is incurring a loss on its latest promotions or breaking even, the step will eventually prove to be profitable. That's because, as Recon Analytics' Roger Entner points out, a customer typically stays with a carrier for 10 years and upgrades their phone every four years. Verizon's price lock guarantee allows it to raise prices after three years.
Verizon's new CEO, Daniel Schulman's contract expires in 2027, leaving him only two years to turn the carrier's fortunes around. This urgency likely explains why he wasted no time in going for T-Mobile's jugular.
Will this be enough?
While Verizon's new deals might offer more value than T-Mobile's, it's still the priciest carrier on a per-month basis. Numerous price hikes caused customers to leave, so it remains to be seen if deep discounts alone will be enough to turn the tide.
Verizon did have a great Thanksgiving holiday, so the situation may have started turning around already. Is this a prelude to a full-blown price war? Only Q1 (or Q2) will tell.
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