Tuesday, July 23, 2024
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It’s official: AT&T and Verizon are feeling the heat from T-Mobile and Sprint

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In AT&T’s case, CFO John Stephens told an investors conference Tuesday that AT&T has had to cut some prices this year in responsive to aggressive moves by rivals and he said that this competition is part of the reason why the carrier will report a churn rate this quarter that’s higher than it was in the same quarter last year. AT&T traditionally has low churn, which means that it tends to keep the customers it adds, so it’s not clear yet how much impact a more competitive wireless market is having, but it’s definitely making a difference.

Verizon, meanwhile, said that its EPS this quarter could be negatively impacted by a “highly competitive and promotion-filled” market that has forced the carrier to respond in kind. Verizon is still on track to have strong customer additions on the quarter and post solid earnings, of course, but the company is having to work harder and spend more money to get and keep customers than it has in the past.

All of this really makes you wonder where we’d be right now if AT&T had been allowed to buy T-Mobile, which would have essentially left AT&T and Verizon as the only two major choices for consumers and would have put Sprint in an impossible competitive position. While the wireless industry in the U.S. is far from perfect, it’s now at the very least competitive and for that consumers can be thankful.

The Heat Reporter
The Heat Reporterhttp://theheatmag.com
Known in entertainment circles as "LA Dre", the Editor of The Heat Magazine works tirelessly to bring you the latest & greatest in entertainment news. He spent years in the industry & now brings some of that insider knowledge to his readers.
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