Verizon is hands-down the biggest telecom company in America. They have been for awhile. While their time on top isn't expected to come to an end anytime soon, even Verizon is acknowledging that they are losing users due to very competitive offers and improved smartphone service from rival companies like T-Mobile and AT&T.
At a conference call yesterday, Verizon's CFO Fran Shammo acknowledged this very fact saying that they were "seeing a certain segment of our base responding to competitive offers." These "competitive offers" are very likely a response to T-Mobile's much publicized early upgrade programs and their most recent offer in which they promised to actually pay off termination fees from rival companies in order to grow their own subscriber base.
It wasn't all doom and gloom for Verizon though as they also announced a return to profitability and an increase in 1.7 million new connections. But, regardless of that success it seems investors and customers alike are starting to sour on the company as competitors like T-Mobile and AT&T are getting lots of good press that is sure to drive some sales for both companies. Even brick and mortar strengths, like the perceived power of Verizon's network, have come under assault in the recent months. T-Mobile and AT&T have been steadfastly upgrading their services while Verizon has publicly acknowledged that some of their inner-city networks are starting to lag in terms of quality.
It has become clear that Verizon needs to stop taking baby steps towards pleasing customers and not let companies like T-Mobile and AT&T to take shots at them. They need to compete with these lower priced plans, not sit there and acknowledge that they are losing market share. In addition, Verizon's response has been somewhat underhanded as they introduced some new plans that ghost what their competitors are offering. We'll have to wait and see what happens with this wireless giant.