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Verizon Reveals Outage Cause and $20 Credit

Bill Thompson
Last updated: January 18, 2026 9:39 pm
By Bill Thompson
News
6 Min Read
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Verizon says a software issue, not a cyberattack, triggered the widespread wireless outage that left millions without service on Wednesday. With connectivity now restored, the carrier is issuing a $20 bill credit to affected customers and outlining basic steps to get devices reconnected.

The disruption was one of the year’s largest for a U.S. carrier, with more than 2 million user reports logged on Downdetector across major metros including New York, Atlanta, Charlotte, and Houston. Many phones displayed “SOS” or “SOS Only,” a symptom of losing access to the carrier network and falling back to emergency calling.

Table of Contents
  • What Verizon Says Happened During the Widespread Outage
  • Who Gets the $20 Credit and How It Will Be Applied
  • How to Redeem the Credit in the My Verizon App
  • If Your Phone Still Shows SOS, Steps to Reconnect
  • Why These Outages Still Happen on Modern 5G and LTE
  • Bottom Line for Verizon Customers After the Outage
The Verizon logo, featuring the word verizon in black lowercase letters with a red checkmark at the end, presented on a white background with a 16:9 aspect ratio.

What Verizon Says Happened During the Widespread Outage

In a statement, Verizon confirmed the root cause was software-related and emphasized there was no evidence of a security breach. While the exact component at fault is still being reviewed, the carrier said service has been restored and recommended that any customers still seeing issues restart their phones to re-register on the network.

Software-driven failures can ripple quickly across modern 5G and LTE cores. Routine changes—anything from routing policies to subscriber database updates—touch control-plane systems that handle authentication and session management. If an update misbehaves or propagates widely, it can block devices from attaching, even when radio signals are available. Carriers typically use staged rollouts, traffic gating, and rapid rollback to reduce risk, but nationwide platforms still face blast-radius challenges when a fault slips through.

Verizon characterized the impact as “very high,” and the swift resolution suggests the company isolated the faulty change and reversed or patched it. Industry incident response playbooks often prioritize restoring attach and voice services first, then data capacity and ancillary features.

Who Gets the $20 Credit and How It Will Be Applied

Verizon is offering a $20 credit per account for customers affected by the outage. The credit applies once per account, not per individual line, meaning multi-line plans will see a single $20 adjustment on a future bill. Business accounts will be contacted directly by Verizon with details tailored to their contracts.

Customers will be notified when the credit is ready to redeem in the My Verizon app, and a confirmation text will follow. There’s no need to call support unless the credit fails to appear after Verizon’s notification window. Expect the adjustment to show up on an upcoming billing statement.

Verizon explains network outage cause, offers $20 credit to customers

How to Redeem the Credit in the My Verizon App

Open the My Verizon app and sign in as the account owner or manager. Watch for an in-app banner or notification about the $20 outage credit and follow the prompts to apply it. Verizon says you should receive a confirmation text after redemption. If you don’t see the offer but were clearly affected, check again later—some credits roll out in waves as eligibility is processed.

For business customers, Verizon will communicate next steps directly with the account administrator. If your organization uses a managed mobility provider, coordinate through your usual support channel.

If Your Phone Still Shows SOS, Steps to Reconnect

Verizon says service is back, but some devices may need a nudge to reconnect.

  • Toggle Airplane Mode off and on.
  • If that fails, power-cycle the phone.
  • On iPhone, check for a Carrier Settings update in Settings and ensure 5G/LTE is enabled.
  • On Android, verify network mode and data roaming settings match your plan.
  • Avoid removing and re-adding eSIMs unless instructed by support, as that can complicate reactivation.

Seeing “SOS” on iPhone does not mean you’re making an emergency call or incurring charges—it indicates the device can reach emergency services even without carrier service. Once your phone reattaches to the network, the status should clear.

Why These Outages Still Happen on Modern 5G and LTE

As carriers shift more functions into software—from traffic steering and voice over LTE/5G to subscriber policy control—the upside in speed and features also raises dependency on complex code paths. The industry has seen similar events: AT&T attributed a multistate outage early last year to a software update during network expansion and offered bill credits to affected users. Regulators such as the FCC routinely review large outages to assess 911 availability, restoration timelines, and customer remedies, pushing operators to improve change management and resilience.

Bottom Line for Verizon Customers After the Outage

Verizon says a software fault caused the outage and that service has been restored. If your phone still struggles to connect, restart it and check for carrier settings updates. For compensation, look for the $20 account credit in the My Verizon app; it’s issued per account, with a confirmation text once applied. Keep an eye on your next bill, and if the credit doesn’t land after Verizon’s notice, reach out to customer support with your account details and the outage date.

Bill Thompson
ByBill Thompson
Bill Thompson is a veteran technology columnist and digital culture analyst with decades of experience reporting on the intersection of media, society, and the internet. His commentary has been featured across major publications and global broadcasters. Known for exploring the social impact of digital transformation, Bill writes with a focus on ethics, innovation, and the future of information.
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