Verizon's New CEO Aims to Revitalize Subscriber Base and Curb Churn Rates
In a transformative shift under the leadership of Dan Schulman, Verizon is re-evaluating its pricing strategy and service culture. Schulman, who took the reins recently, has emphasized the company's commitment to prioritizing customer satisfaction over profits. This new direction comes at a critical time as Verizon faces rising competition and subscriber discontent, particularly from rival T-Mobile.
Verizon's new CEO Dan Schulman has promised a significant cultural overhaul at the carrier. No longer will Verizon prioritize profits at the expense of its customers. Schulman stated, "These will not be incremental changes. We will aggressively transform our culture, our cost structure, and the financial profile of Verizon to put our customers first, compete effectively, and deliver sustainable returns for our shareholders."
Potential to Attract T-Mobile Subscribers
This bodes well for Verizon subscribers and comes at a convenient time as T-Mobile faces unrest among both its subscribers and representatives. The company is currently undergoing a challenging phase, transitioning to a digital service model with its T-Life app, which will manage orders, upgrades, payments, and cancellations. This shift may lead to store closures and layoffs, with many T-Mobile users dissatisfied with the app's functionality. Consequently, Verizon could capitalize on this discontent, attracting customers looking to switch providers.
Verizon's new CEO highlights past pricing strategies as factors for the carrier's high churn rate.| Image credit: Verizon
Schulman has acknowledged that Verizon's previous price hikes have contributed significantly to its high churn rates, which measure the percentage of subscribers leaving the provider. Heading into the fourth quarter, Verizon had recorded a loss of 347,000 postpaid phone subscribers, a vital demographic for the company as these customers tend to be the most profitable and stable.
High Churn Rates Linked to Previous Pricing Strategies
In the fourth quarter of 2025, Verizon gained 616,000 net postpaid phone subscribers, indicating a promising start for Schulman’s leadership despite being newly appointed on November 1st. While this quarter's positive outcomes appear coincidental, they still signal a good beginning for Schulman as CEO.
During an earnings call following the announcement of fourth-quarter results, Schulman candidly stated, "One of the reasons why we have such a high churn rate...is because we keep raising our pricing without corresponding value." Such honesty from a carrier CEO is rare and demonstrates Schulman’s genuine commitment to prioritizing customers.
Over the past three years, Verizon's churn has increased by 25 basis points (0.25%). This seemingly small number translates to a significant impact; each basis point increase in churn results in an estimated loss of 90,000 net subscribers. Therefore, the 0.25% rise over three years equates to a staggering potential loss of 2.25 million net subscribers. Last year, Verizon implemented four rounds of price increases, raising monthly plan rates and certain subscriber fees.
Future Strategies and Share Performance
Schulman has declared that Verizon will no longer depend on "empty price increases" for short-term financial gains, as this approach is not sustainable for long-term growth. Although the options remain open for price adjustments if they accompany enhanced customer value — such as acquiring additional spectrum or infrastructure improvements — the emphasis will shift towards adding value rather than enforcing price hikes.
Looking ahead, Verizon anticipates adding between 750,000 to 1 million net postpaid phone subscribers in 2026, anticipating two to three times the gains from 2025. Following recent market movements, Verizon shares reached $44.84, getting closer to its 52-week high of $47.35, demonstrating positive market reactions to Schulman's strategies.
