Verizon Offers $20 Account Credits to 1.5 Million Customers After 10-Hour Service Outage

Verizon Communications announced on January 15, 2026, that it would offer $20 account credits to affected customers following a major 10-hour wireless outage that occurred the previous day. The company attributed the issue to a software problem and apologized for the disruption. The outage impacted over 1.5 million customers across the U.S., with the most severe disruptions reported in major cities like New York, Atlanta, and Houston.

The service disruption began around 12:30 p.m. ET on January 14 and was resolved by approximately 10 p.m. ET. During the outage, customers experienced a loss of wireless voice and data services, with some devices getting stuck in “SOS” mode. Verizon urged affected users to restart their devices to restore service. The company also stated that business customers would be contacted directly regarding the credit offer.

In a statement, Verizon acknowledged that it did not meet its own standards of service during the outage. The company said the credit was not intended to fully compensate customers but was a gesture of goodwill.

Why Did This Happen?

Verizon attributed the outage to a software-related issue, though it did not specify the exact cause. A company representative said that no evidence of a cyberattack was found. This type of disruption is not uncommon for large telecom providers, but the scale and duration of the outage raised concerns among users and officials.

Downdetector, a service outage tracking website, reported a peak of over 178,000 simultaneous reports of service issues during the outage. Major cities like New York and Washington, D.C., issued alerts advising residents to use other carriers or landlines for emergency services.

How Did Markets React?

Despite the outage, Verizon's stock closed higher on January 14, rising 2.1% to outperform the S&P 500. The company did not disclose the cause of the outage, and investors appeared to accept the explanation. Rival carriers AT&T and T-Mobile reported far fewer service issues, though they also noted that disruptions could affect customers' ability to reach Verizon users.

The Federal Communications Commission (FCC) confirmed it was monitoring the outage and would conduct a review. FCC Chair Brendan Carr said the agency would “take appropriate action”. No immediate regulatory action was announced.

What Are Analysts Watching Next?

Analysts and lawmakers are now watching how Verizon handles the aftermath of the outage. A New York State Assembly member called for an investigation into the incident, citing concerns about public safety and infrastructure reliability.

Verizon has faced similar outages before. In late 2024, the company experienced a nationwide disruption affecting over 100,000 users at its peak. The current outage has raised questions about the stability of the nation's telecommunications infrastructure, particularly as carriers continue to modernize their networks.

The company has previously announced major restructuring efforts, including a significant round of layoffs in November 2025. These steps highlight the broader challenges facing the telecom industry as it balances network reliability with cost efficiency.