At Deutsche Bank’s Media, Internet & Telecom Conference, Verizon’s Chief Revenue Officer Frank Boulben explained that the company scaled back on customer incentives after the promotion-heavy December quarter, but rivals did not follow suit, intensifying competition. “This first quarter is a bit unusual,” Boulben noted, highlighting the challenges in a saturated market where growth is slowing.
Intensifying Competition in a Saturated Market
U.S. telecom companies have increasingly relied on incentives to attract and retain customers in a fiercely competitive environment. While these promotions have driven subscriber additions, they have also raised concerns about profitability. Paolo Pescatore, an analyst at PP Foresight, pointed out that the opportunity to add mobile subscribers is shrinking, with broadband providers like Comcast also aggressively targeting wireless customers.
Verizon has also observed a “slow start” to phone upgrades in the first quarter, attributing it to customers delaying purchases amid economic uncertainty and a lack of groundbreaking new features in devices. However, the company remains optimistic, reiterating its target of single-digit growth in annual phone upgrades and expecting a rebound later in the year.
Outlook for 2025 and Beyond
Verizon anticipates adding more monthly-bill-paying wireless subscribers in 2025 than the approximately 900,000 it added in 2024, driven by its customizable myPlan offerings. The company’s comments come after a strong fourth quarter in 2024, where U.S. telecom firms benefited from bundled plans combining 5G services, high-speed fiber data, and streaming platforms.
Limited Impact from Tighter Immigration Policies
Verizon and AT&T downplayed concerns about the potential impact of tighter U.S. immigration policies on their businesses. Since President Donald Trump took office in January 2025, his administration has implemented sweeping immigration restrictions, including a broad ban on asylum and increased border security measures. These policies have raised fears of a shrinking customer pool for telecom companies.
However, Verizon’s Boulben stated that the impact would likely be minimal, particularly in the postpaid segment where customers provide identification to sign contracts. “If there is any impact, we will see it towards the low end of the prepaid market,” he said.
Competition from Satellite Internet Providers
Both Verizon and AT&T also addressed concerns about competition from satellite internet providers like SpaceX’s Starlink. They argued that wireless services remain more reliable and cost-effective for most consumers. AT&T CFO Pascal Desroches acknowledged the potential of satellite connectivity but noted, “It makes all the sense in the world. But it’s not an enormous business opportunity today.”
Meanwhile, T-Mobile is set to launch its satellite-to-cell service, powered by Starlink, in July 2025, priced at $15 per month. This move could further intensify competition in the telecom sector, particularly in rural and underserved areas.
As the telecom industry navigates these challenges, Verizon’s focus remains on leveraging its customizable plans and network reliability to drive growth, even as it contends with heightened competition and economic uncertainties.