Verizon isn't doing enough to win back customers

 

The results of another poll we conducted were also similar. We asked our readers if Verizon was back on track and got 1,237 responses. Of those, 890 (72%) of the participants replied negatively. 297 (24%) of the respondents will form a judgement after the Q4 results. Only 50 (4%) of the readers thought that Verizon was regaining momentum.

In short, most of our readers don't seem to have confidence in Schulman's ability.

Verizon is a mess

Schulman inherited a Verizon that had lost its way. Former CEO Hans Vestberg's network-first strategy and missteps during his tenure of over 7 years caused it to lose market share. The company had been underperforming compared with its rivals for a long time before Schulman was brought in.

The new CEO cannot reverse the situation overnight. However, the foundation he is building may be misguided. For starters, he has laid off 13,000 employees to redirect resources toward value creation for customers, even though the terminated employees allegedly accounted for only a fraction of the carrier's annual expenditure.

The layoffs can also temporarily disrupt operations, not only distracting employees but also further putting off customers who are already more willing than before to leave.

Instead of relying on cost-cutting measures to stay afloat, Verizon needs to devise solutions to fuel growth and attract new subscribers.

By focusing solely on efficiency, Schulman is essentially following Vestberg's playbook, albeit at a lower cost.

That's not to say that Schulman isn't actively trying to court customers. Verizon's holiday deals are so good that some analysts are wondering whether the company is taking a loss on them.

However, deals are temporary, and offering discounts during the holiday season isn't exactly a grand gesture. Other steps, such as the "Bring Your Bill" initiative and the free line offer, come across as half-hearted measures.

Schulman hasn't been at the CEO post long enough to bring about noticeable changes, though, and what's promising is that he isn't afraid to acknowledge that Verizon messed up.

Verizon is itching to reclaim network leadership

Verizon's layoffs hint at a new strategy of reduced capital spending. That's a sign that Verizon has learned that you can't throw money at every problem and expect to solve it.

While Verizon spiraled downward, T-Mobile racked up wins, making Schulman's job even harder. However, with years of experience on his side, he will probably succeed in putting the carrier back together, though it may take time.