Verizon’s 5G Promotions Pay Off
A recent surge in wireless subscribers has given Verizon a much-needed boost in the competitive US telecom market. The company’s promotional offers, including its customizable myPlan with streaming perks, have attracted a significant number of new customers.
Streaming Services Drive Growth
Verizon’s partnership with popular streaming services such as Netflix, Disney+, Hulu, and Max has been a key factor in its success. The company’s myPlan, which offers these services for an extra cost, has seen growing adoption among customers. As a result, Verizon added 239,000 net monthly bill-paying wireless phone subscribers in the third quarter, exceeding expectations.
Expanding Broadband Business
With the US wireless market nearing saturation, Verizon is shifting its focus to expanding its high-speed broadband internet business. The company recently agreed to acquire fiber-optic internet provider Frontier Communications in a $20 billion deal. While broadband net additions were lower than expected, Verizon’s fixed wireless service added 363,000 customers, meeting its goal of 4 to 5 million subscribers ahead of schedule.
Financial Performance
Excluding items, Verizon reported a profit of $1.19 per share, beating estimates. However, total revenue came in slightly below expectations due to declines in wireless equipment revenue. Net income fell to $3.4 billion from $4.9 billion a year ago, impacted by severance charges from a voluntary separation program.
Challenges Ahead
Despite its recent success, Verizon faces challenges in the competitive US telecom market. The company’s shares were down 1.7% in premarket trade, reflecting concerns over its ability to sustain growth. Nevertheless, Verizon’s focus on expanding its broadband business and offering innovative services is expected to drive its performance in the coming quarters.
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