Verizon's Stratton says carrier will return to growth in postpaid phone subscribers during Q4

Verizon's Stratton says carrier will return to growth in postpaid phone subscribers during Q4
Last quarter, Verizon announced that it lost 36,000 postpaid phone subscribers during the third quarter. Why is that a big deal? Postpaid phone subscribers are the most important metric that a carrier reveals each quarter. Not only is it the bread and butter of the major carriers, this part of the business carries high margins and high average monthly bills (but we didn't have to remind you of that).

The third quarter was the first in Verizon's history to show a decline in postpaid phone subscribers. This captured the attention of T-Mobile CEO John Legere, who reminded everyone that T-Mobile scored an 851,000 gain in postpaid phone subscribers during the same period. Sprint and T-Mobile started unlimited data plans in the quarter, which hurt Verizon. Also impacting Big Red was the incredibly competitive promotions among carriers for the Apple iPhone 7 and Apple iPhone 7 Plus.

Verizon EVP John Stratton says that he expects the carrier to return to growth in the current quarter, which ends in December. He says that consumers will continue to respond favorably to the new pricing it announced this past summer. While prices rose, the amount of data that comes with each plan also rose. It added a one-month rollover on unused data, and replaced overage charges by throttling the data speeds of those who go over their data cap to 128 Kbps. The executive said that the new plans brought the fastest migration to any new plans offered in Verizon history. "We had literally tens of millions of subscriber lines shift onto these plans in just the first couple of months," Stratton said.


Will Verizon rebound from its first decline ever in postpaid phone subscribers? We will know on January 24th, 2017. That is the date when the carrier is expected to release its results for the fourth quarter.

source: FierceWireless

FEATURED VIDEO

4 Comments

1. tedkord

Posts: 17207; Member since: Jun 17, 2009

Hope not. They need to feel the heat.

3. Acdc1a

Posts: 473; Member since: Jan 21, 2016

I agree, but calling for adding subscribers in Q4 is not exactly a stretch. Let's see how Q1 treats them.

2. jsjammu77

Posts: 24; Member since: Oct 19, 2014

Bring back the unlimited. Verizon always says that less than 5% of customers use more than 3-5 GB's of data a month so it's really not a negative impact on the network especially if they have a pre set soft cap on the data like AT&T does with 22 GB's. It's all about greed. I am glad they are feeling the heat from other carriers.

4. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Not me you sobs.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.