Verizon warns of ‘soft’ subscriber growth of strong competition, shares fall

(Reuters) – Verizon (VZ) warned Tuesday that the growth of the first quarter of subscribers would probably be “soft” because rival carriers attract customers with promotions and send his shares early.

The American wireless giant withdrew to the customer’s stimuli after the promotion-heavy Decemberkwartier, but rivals did not do that, in increasing competition, said Chief Revenue Officer Frank Boulben on Deutsche Bank’s media, internet and telecom conference.

American telecom companies have leaned on stimuli in a fierce battle for customers as growth slows down in a saturated market. That has increased the growth of the subscribers, but has been worried about profit.

Shares of Verizon-rival AT&T fell by 4.5%, because it also said that it saw elevated subscribers in January, while T-Mobile US dropped by 2.1%.

Verizon has also seen “a slow start” to call upgrades in the first quarter, a sign that customers continue to stop purchases in the midst of growing concerns about the American economy.

Nevertheless, in 2025 the company expects to add more paid wireless subscribers to the monthly bill than the approximately 900,000 subscribers that it added last year, because it benefits from the customizable Myplan.

The comments follow a strong fourth quarter for American telecom companies, where plans bundle 5G services with high-speed fiber data, as well as streaming services, have contributed to attracting customers.

Verizon also said it was not expected a big hit because of the tightening in American immigration.

“We expect a very limited impact on the postpaid side where customers should give a form of identification to get a contract. So if there is any impact, we will see it in the direction of the low side of the prepaid market,” Boulben said.

Since he took office in January in January, President Donald Trump has taken a radical performance of immigration, which produces the US Army with helping border protection and spending a broad ban on asylum.

(Reporting by priyanka.g in Bengaluru; Edit by Leroy Leo)