Verizon's New 3-Year Price Lock, Free Phone Offer: Strategic Move To Boost Customer Retention

Verizon Communications Inc. VZ announced Thursday that it will offer new and existing customers a three-year price lock guarantee on all myPlan and myHome network plans.

The deal builds on Verizon’s MyPlan and MyHome offerings, which allow customers to bundle streaming services, mobile phone service and home internet, including devices.

Verizon previously offered free phones for its premium subscriber plans. Now, it is offering a free phone to new and existing customers.

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The users will need to trade in an old Apple Inc AAPL, Samsung Electronics SSNLF, or Alphabet Inc GOOG GOOGL Google phone in any condition and be on a myPlan subscription. 

Verizon Consumer CEO Sowmyanarayan Sampath said the three-year price lock across mobile and home provides peace of mind and a free phone on every myPlan, gives customers even more value.

The company will also offer free satellite-based text messaging to any myPlan subscriber on qualifying devices.

However, the three-year guarantee does not encompass fees and taxes, implying Verizon can still raise the monthly bill through increased fees,  cut the monthly autopay discount, or persuade consumers to migrate to a pricier plan with the offer of a new phone, The Verge reports. 

Verizon and its peers AT&T Inc T and T-Mobile US Inc TMUS compete intensely for market share.

Since Sampath assumed charge in 2023, he has hiked prices and introduced flexible pricing plans to drive growth, Bloomberg reports. Verizon has also added bundles that include access to streaming services such as Netflix Inc NFLX.

T-Mobile plans to charge customers $10-$15 monthly for SpaceX’s Starlink-supported text and data services.

Price Action: VZ stock is up 0.59% at $45.89 premarket on the last check on Friday.

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