Verizon Communications said Friday that Hans Vestberg will become CEO on Aug. 1, a move that shows how the No. 1 U.S. wireless carrier is prioritizing developing a next-generation network as it faces more competition from smaller rivals.

Vestberg, the company's chief technology officer, will succeed Lowell McAdam, who has been CEO since August 2011. McAdam will continue as chairman of the board.

Verizon has been losing postpaid wireless subscribers, or customers who pay a monthly bill, to its No. 3 rival T-Mobile, which has won customers by pitching itself as more consumer-friendly and offering more perks. T-Mobile recently announced a merger with No. 4 carrier Sprint, and executives at both companies have said that combining forces would speed up the development of 5G. A 5G network is expected to offer faster speeds, more capacity and lower response times.

"We are experiencing unprecedented changes in the way users interact in the digital world, and we are racing ahead to remain at the forefront of technology, connectivity and mobility," Vestberg said in a statement.