Verizon cracks down on internet customers violating key rule

Verizon, one of the largest phone carriers in the U.S., is currently seeing increased demand for its 5G home internet service amid a growing consumer trend that is raising eyebrows across the telecom industry. 

During the third quarter of this year, Verizon’s 5G home internet service, also known as fixed wireless access (FWA) internet, gained 261,000 new customers, according to the company’s latest earnings report. 

“With approximately 5.4 million FWA subscribers, our annualized revenue has surpassed $3 billion and continues to grow,” said Verizon Chief Financial Officer Anthony Skiadas during an earnings call in October. “We believe FWA can be a long-term, sustainable business.” 

Many Americans nationwide have been cutting the cord on traditional internet services as they grow frustrated with rising monthly bills. 

How Americans are responding to rising internet prices:

• About 43% of Americans said the cost of their internet service increased the most in 2024 compared to other home services.  
• The average price hike for internet services was $20.78.
• Also, 53% of Americans are most frustrated by their internet service having hidden fees, while 39% are frustrated with price hikes after a promotional period ends. 
• ​​Nearly 3 in 4 Americans canceled, downgraded or considered switching internet providers due to high prices.
  Source: Reviews.org

Fixed wireless internet, which T-Mobile and AT&T also offer, has been a popular choice among consumers, primarily due to its availability in rural areas and affordability. 

“Although 5G home internet technically isn't faster than cable or fiber internet, it offers a lot of value,” said Peter Holslin, managing editor at Reviews.org, in the survey. “5G internet packages are typically sold at fixed rates, with no extra fees for installation or equipment, and you often get other perks too like unlimited data and bundle discounts when you pair it with a cell phone plan from the same provider."

Verizon sends stern warning to some internet customers

As Verizon benefits from this major shift in consumer behavior, it recently decided to restrict its 5G home internet service. 

A Verizon customer flagged that the company sent them an email warning them that the speed of their 5G home internet service has been reduced due to the service being used at an address that’s different from the one they provided during registration, according to a recent post on social media platform Reddit,

“Your Verizon Home Internet speed has been reduced because the service is being used at a location different from your qualified service address as required by our Terms of Service,” reads the email from Verizon. “To restore your previous internet speeds, please use the link below to request moving your service and equipment to your new address. This step is important to ensure we can provide you with the best possible service quality. For questions or if you believe this notice was sent in error, contact us at 800-922-0204. Submit move request.”

In the post, the Verizon customer claims that “after checking internet speeds, they get reduced to 10mbps down and 3mbps up.”

Verizon does outline in its Terms of Service that its 5G home internet is “to be used exclusively” at the address customers used to register for the service. 

Related: Verizon lowers price of major customer perk amid struggles

Verizon also warns that if a customer moves or uses the service at a different address without notifying the company, it “may terminate or modify” their internet.

Despite this rule, Verizon sales representatives have allowed customers to bypass it to meet sales goals.

A Reddit user who claimed to be a former Verizon employee commented under the post, stating that when a customer uses their home internet service at a different address, it makes it challenging for the company to deliver promised internet speeds and troubleshoot service issues. 

“They (Verizon) map out a certain area and determine that customers within that specific area would get the best coverage possible and this would lead to them delivering what is promised in terms of speed and so on,” wrote the former employee. 

“Their systems are also designed to troubleshoot issues with the modems within that geographic area and not some other area. If the agent were to put in the actual address of the person who is having issues with the device, the troubleshooter would simply stop and will not allow the rep to continue troubleshooting,” they continued. 

Verizon has previously addressed this issue, but has only emailed customers who violate its service address rule, advising them to update their service address to “avoid any service interruptions.” This is the first time Verizon has taken more aggressive action to curb this issue.  

Verizon's 5G home internet is losing its appeal

The move from Verizon comes after fixed wireless internet speeds decreased nationwide for Verizon, AT&T and T-Mobile customers during the second and third quarter of 2025, according to a recent report from technology company Ookla.

For Verizon customers specifically, median download speeds dropped from 167.30 Mbps during the first quarter to 137.81 Mbps during the third quarter. Also, upload speeds declined from 15.23 Mbps to 11.40 Mbps during that same time period. 

More Telecom News:

• T-Mobile announces free offer for Verizon and AT&T customers
• ​​Verizon CEO sounds alarm on why customers are leaving in droves
• Spectrum raises red flag on cause of fleeing customer problem

Ookla highlights in the report that “network congestion” could be one of the reasons why speeds for fixed wireless internet customers are declining. 

“There have long been concerns from the investment community and others about traffic from FWA subscribers causing congestion and impacting the performance of both mobile and FWA customers because the same 5G spectrum is being used to deliver both services,” wrote Sue Marek, Ookla editorial director, in the report. 

Amid this concerning trend, a recent survey from J.D. Power found that Verizon’s fixed wireless internet service falls behind its top competitors in terms of consumer satisfaction rates.

Fixed wireless internet consumer satisfaction rates:

• Over the past six months, wireless internet providers experienced a 15% increase in new sign-ups, while wired internet providers saw a6% increase.
• Overall satisfaction is higher for wireless internet, with a score of 647 (on a 1,000-point scale), compared to 554 for wired. 
• T-Mobile ranks highest in wireless internet nationally, with a satisfaction score of 663, while AT&T falls in second place with a score of 625, and Verizon with 623.
  Source: J.D. Power 

“The internet landscape is clearly evolving, with continued rising customer satisfaction and continued strong customer service performance in wireless service,” said Carl Lepper, senior director of technology, media and telecom intelligence at J.D. Power, in a press release. 

“The high satisfaction we are seeing in the wireless internet segment is attributed to internet speed, availability and the hassle-free ability to start service, combined with a lower price,” he continued. “Additionally, with more provider options, customers are able to choose the service that best fits their lifestyle.”

Related: T-Mobile launches free offer for customers after major loss