Verizon cutting prices
January 11, 2026
Verizon, the US wireless carrier company, trimmed its multi-line prices somewhat in December, but have now made a further discount available.
Sam McHugh, an equity analyst at BNP-Paribas, says Verizon has added a $10 promotional discount to its advertised prices which had only just been cut.
McHugh, in a note to clients, says: “The price cuts made in December appear to have only had a marginal impact on the momentum in Verizon’s gross additions (which we think weakened in 4Q25 while churn pressures didn’t abate, creating the need to cut price to try to improve nets). This demonstrates that turning the business around is likely to be harder and more expensive than anticipated.”
“This, in our view, presents a double-edged sword for T-Mobile (T/TMUS). On one hand, it suggests Verizon is not landing the blows on T/TMUS needed to improve their own net additions, and with Verizon constrained by the Free Cash Flow (FCF) guide given by the new CEO, Verizon may well end up being less impactful on T/TMUS than feared (this is broadly our view). On the other hand, if the new CEO is willing to walk back FCF targets, they could become more aggressive again – and the difficultly in turning around KPIs may well require further promotional activity and price cuts…. which would of course be bad for sentiment.”
McHugh had previously talked about Verizon’s price cuts created anxieties of a price war amongst cellular providers.