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Verizon Introduces Unlimited Plans, Subscriber Growth Surges
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Verizon Introduces Unlimited Plans, Subscriber Growth Surges

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After Verizon Communications Inc. introduced unlimited data plans in its packages, it gained 614,000 more subscribers in the second quarter. It is interesting to see that in a competitive market that offers unlimited data plans, Verizon surged to the top. The subscriber growth broke all estimations, with 10 times more than expected. Verizon grew past AT&T but did not take on T-Mobile.

Shares Highest in 8 Years

Unlimited plans are a must for mobile users who eat up a lot of video data. With its new packages, Verizon shares rose to $46.41, the highest since July 2009. However, as of now, the subscriber growth will mostly buy the company some time to keep investors interested. Verizon is still under a lot of pressure to keep up with the prices for wireless packages. Moreover, under the current plan, analysts predict the company will have 0 growth in the next three years.

Meanwhile, Verizon has been working to build a bigger audience by developing a 5G network and the Oath subsidiary that is going to be focusing on digital media, online services, and software. The plan ultimately wants to challenge big players such as Google and Facebook with regards to mobile advertising. In addition, it has been said that the company plans to launch an online TV service that is to compete with giant AT&T’s DirecTV Now and Dish Network Corp’s Sling TV.

T-Mobile Remains on Top

Verizon’s sales increased to $30.5 billion compared to the average projection of $29.9 billion. The company’s subscriber growth surged by AT&T’s gains of only 127,000 mobile subscribers. AT&T also offered bundles with unlimited plans and discounts. However, neither company managed to come close to T-Mobile’s 817,000 new subscribers reported in the second quarter.

Verizon also gained 49,000 subscribers for its broadband Internet services. However, it lost 15,000 video customers, 33,000 TV customers, and 34,000 broadband users. Meanwhile, CEO Lowell McAdam is waiting to strike big deals with other companies, as he mentioned in April that he would take calls from Disney Co, Comcast or CBS Corp.

Image source: Flickr.


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