Deutsche Bank analysts say BYOD promotions from rivals could negatively impact Verizon

Deutsche Bank analysts say BYOD promotions from rivals could negatively impact Verizon
Most phones these days are purchased using an installment plan, and this is leading consumers in the U.S. to hold on to their daily driver for longer periods of time. As a result, smartphone owners are more apt to bring their current phone with them when switching wireless firms. Analysts working for Deutsche Bank say that the next big trend in wireless will be "Bring Your Own Device" (BYOD).

In a note to clients, the global bank says that big stateside carriers like Verizon could see higher churn rates as rival wireless operators start promoting BYOD plans. The Deutsche Bank analysts pointed out that in a promotion aimed at Verizon subscribers, those who bring their own phone to Sprint receive one free year of unlimited service from the nation's fourth largest carrier. The report also notes that customers carrying their own phone make up approximately 10% of activations at AT&T, and have hit the mid-teens at T-Mobile. According to brokerage house Cowen and Co., the percentage of post-paid subscribers who hold on to their handsets for two years or more has risen to 34.1% from 23% three years ago.
 
It might be too early for the BYOD trend to affect Verizon's churn rate. We should get the latest figures tomorrow when the company reports earnings for the fourth quarter of 2017. Scotiabank Equity Research analysts told clients to expect Verizon to report postpaid phone net additions of as much as 300,000 for the fourth quarter of 2017, versus 167,000 last year.

source: FierceWireless

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14 Comments

1. Derekjeter

Posts: 1440; Member since: Oct 27, 2011

Verizon iphones are the only phone you can take anywhere to any company, with out paying the phone off, so they would suffer the most from BYOD.

3. tuminatr

Posts: 1090; Member since: Feb 23, 2009

I think this was accurate a few years ago but any Pixel should work too. Any Samsung s8 s8+ Note 8, Essential PH-1, and I may have forgot a few should work on any network in the USA

10. Derekjeter

Posts: 1440; Member since: Oct 27, 2011

You are correct the Pixel will also work on any network, but I’m sure the Samsung phones can’t fully work on other carriers.

8. makatijules

Posts: 835; Member since: Dec 11, 2017

That's false. The S8 and Note 8 also carry GSM + CDMA modems. In fact this has been true since the S6. All US models of the Galaxy starting with the S6 support the 4 major carriers in one device.

2. tuminatr

Posts: 1090; Member since: Feb 23, 2009

So t-mobile's parent company thinks BYOD will hurt Verizon. My bet is that this will have the same effect on all the carriers. BYOD is actually a bad idea in most cases because Verizon, T-Mobile and AT&T use different LTE bands and many of the devices wont work to their networks potential because of that. IE a Verizon Galaxy S7 Edge does not support band 12 so you wont get VoLTE on T-mobile. Most older than current Verizon phones don't support band 12 and the same can be said for T-Mobile & AT&T phones they don't support LTE band 13

5. Alan01

Posts: 564; Member since: Mar 21, 2012

T-Mobile's parent company is Deutsche Telekom, not Deutsche Bank. Alan Friedman

7. tuminatr

Posts: 1090; Member since: Feb 23, 2009

I stand corrected Deutsche Telekom biggest stakeholder is the German Government

9. makatijules

Posts: 835; Member since: Dec 11, 2017

In many cases an unlock Verizon phone will work on other carriers in Global mode. But most GSM phones unlocked won't work on CDMA carriers. Xfinity Mobile offers a bring your own device and list the latest iPhone and Galaxy models as compatible. Xfinity Mobile uses Verizon's network if Xfinity network can't be reached.

12. andynaija

Posts: 1242; Member since: Sep 08, 2012

"Verizon Galaxy S7 Edge does not support band 12 so you wont get VoLTE on T-mobile" False.

4. LAFN

Posts: 61; Member since: Jul 19, 2009

I thought I read if you bought an unlocked iPhone from Apple it will work on any carrier.

11. makatijules

Posts: 835; Member since: Dec 11, 2017

IPhones are not locked to any carrier anyways. You can put a SIM from any major carrier even if you are on another network and it will work. When I had VZW, I use to drop my TMO SIM all the time.

13. andynaija

Posts: 1242; Member since: Sep 08, 2012

Because Verizon phones are unlocked from purchase, but you can't put a Verizon SIM in a T-Mobile iPhone without unlocking it first.

6. Jrod99

Posts: 684; Member since: Jan 15, 2016

Good to hear. Can’t stand this carrier. Please don’t remove my comment. My opinion. Never mind. Not a Cosmin V article.

14. enalo

Posts: 2; Member since: Jul 02, 2014

The newer generation IPhones are to be considered global phones. They have the most built-in bands. I can't speaker for the Samsung S8 but the Samsung S7 model does lack some bands that carriers use. I've also heard Verizon pushes out software to some of their android lineup that disables MMS to function properly on other carriers.

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