Verizon Getting Hit Hardest By Unlimited Data Wars Verizon is losing the most customers in the wake of a spike in wireless competition centered around unlimited data plans. That's according to a new report by Cowen and Company Equity Research, which estimates that Verizon lost more customers to its competitors than any other major US wireless carrier in the second quarter. Most of those customers appear to be flocking to T-Mobile, which forced Verizon to bring back unlimited data plans it had repeatedly tried to claim customers didn't want (narrator: they did).

Verizon's problems stem in part due to the fact that Verizon refused to seriously compete on price for a long time in the face of T-Mobile competition, arguing that its network was so superior -- it didn't have to. But as T-Mobile's network has improved, that argument hasn't aged particularly well. "The results in our view reflect Verizon’s late response to increasing pricing competition and an increasingly difficult-to-justify pricing premium for its promised leadership network experience," Cowen analyst Colby Synesael said. "The last time this was the case was in our 2Q14 survey and (that), importantly, does not reflect a trend (but) adds validity to the argument that the company has become vulnerable to the same competitive threats that hurt AT&T early on." Verizon, like AT&T, had grown accustomed to pretending to compete via non-price competition thanks to their retail and special access duopolies. But you don't get to choose when to compete when real price competition (T-Mobile) suddenly challenges your market position, something both companies appear to be learning the hard way. That said, the report is also quick to note that Verizon does still hold the top spot with it comes to brand perception, something that may change as Sprint and T-Mobile's networks continue to improve. "Interestingly, despite Verizon’s heightening vulnerability and slightly slipping in brand/image in the last two quarters' survey, the carrier’s brand/image still commands a solid #1 position," notes the report. "We suspect Sprint and T-Mobile could gain ground over the next year as they leverage (or at least claim) near-network parity and enter new markets." "Interestingly, despite Verizon’s heightening vulnerability and slightly slipping in brand/image in the last two quarters' survey, the carrier’s brand/image still commands a solid #1 position," notes the report. "We suspect Sprint and T-Mobile could gain ground over the next year as they leverage (or at least claim) near-network parity and enter new markets."







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Most recommended from 44 comments



SuperSpy

join:2012-06-15

Coldwater, MI 6 recommendations SuperSpy Member No Suprise This describes my situation perfectly. I signed up with Verizon in 2012 because they had the best and fastest coverage in my area by a mile, and I was willing to pay the premium for it. Now in 2017 I get to deal with slow downs and dropped calls even though I have excellent signal nearly everywhere, and I still get to pay a premium price for it.



The odds of me dropping them for T-Mobile in the fall are very high unless I notice some improvements either in speeds or pricing. JosemicT

join:2016-09-21

Bon Aqua, TN 5 recommendations JosemicT Member Unlimited I'm glad ATT decided to do the unlimited plan, I know you get throttled after 22 gigs and 10gigs on hotspot, but honestly its worked just fine for us.. And with unlimited plus, we got the hbo perk too which is nice... Well as long as it last anyways lol

Anonf8b2b

@pacswitch.com 5 recommendations Anonf8b2b Anon There's one thing There is one thing many people can agree on and that is "a person never forgets how they have been treated".



And verizon may be having difficulty understand that. I think AT&T knows it. Hence their better but pricey service plans,i.e unlimited WHPI,Hotspots,Connected car. moulder3

join:2007-05-21

Boston, MA 5 recommendations moulder3 Member What? "the report is also quick to note that Verizon does still hold the top spot with it comes to brand perception, something that may change as Sprint and T-Mobile's networks continue to improve."



Hahahaha. Exactly no one who has Sprint thinks their network is currently improving. This is coming from someone who's had a Sprint line for 16 years. Sprint has spent basically nothing on network improvements since 2015 and with massive amounts of debt coming due soon, don't expect that to change.

Anona2111

@chtrptr.net 3 recommendations Anona2111 Anon Can we wait until next Thursday when 2nd quarter numbers come out before we go making proclamations about Verizon's status either way? Nuggits

join:2008-10-03

Allston, MA 2 edits 2 recommendations Nuggits Member Interesting... Here I thought that AT&T was shedding the most subscribers. What's really interesting though is comparing Tmobile's and Verizon's pricing.



I personally tried both Tmobile and Verizon and found that they are now within $11 of each other after taxes for an Unlimited phone line and a data only SIM (which I use in a laptop). That said, if you add the One Plus option Tmobile then becomes more expensive than Verizon or AT&T.



AT&T meanwhile is $10/month more than Verizon...for no reason or major benefit as far as I can tell.