By David Shepardson
WASHINGTON, June 16 (Reuters) - Verizon is aiming to attract customers by offering simpler plans, dropping activation and upgrade fees and unveiling a new loyalty program offering discounts and perks.
The U.S. company is aggressively competing with AT&T and T-Mobile in the saturated U.S. telecoms market, where network providers have extended device subsidies, added plan discounts and increased network infrastructure spending.
Verizon said its new program will offer customers 3% back
on bills from July that can be used toward new phones or at consumer brands like Sephora, Hilton, Marriott and Starbucks.
Alfonso Villanueva, interim CEO of Verizon Consumer Group and Verizon chief transformation officer, told Reuters the move is about making it simpler and more flexible for customers.
"How do we create a value proposition that makes sense for every cohort?" Villanueva said in an interview, adding: "We are convinced that our retention will be even higher".
Verizon said postpaid customers on all phone and connected device plans can opt in to its loyalty program and avoid activation and upgrade fees. It is also offering perks such as free Starbucks coffee, a Dunkin' Donuts treat or FIFA World Cup 2026 merchandise.
Its new "Simplicity" plan will drop network tiers and another will combine Mobility and Home on one bill with taxes and fees included.
Under new CEO Dan Schulman, Verizon in April raised its annual profit forecast. It declined to say how much the changes announced on Tuesday would cost but they are expected to be accretive to revenue. The program would not change its 2026 financial guidance, Verizon said.
Like AT&T, Verizon has leaned into discounted bundles combining high-speed broadband and wireless plans, a strategy aimed at boosting customer retention.
T-Mobile has had success with its loyalty programs offering perks and aggressive marketing along with its plans that bundle Netflix, Apple TV and Hulu with five-year price guarantees.
Last month, Verizon cut several hundred jobs after saying in November it was cutting more than 13,000.
(Reporting by David Shepardson; Editing by Alexander Smith )
