Everyone is shocked when they found out that for the first time, Verizon is losing its customers. In fact, it has been said that the wireless company has been losing its customers more than it can replace them.
Last April of this year, it was reported that the company had a net loss of 289,000 cellphone subscribers over the course of four months. It is usual for a wireless company to lose customers every so often. But for the wireless giant, this is a major milestone…the bad way.
Verizon has been historically known to lure back its lost customers enough to be able to still report that there was growth in its business. But this time, it wasn’t able to and hundreds of thousands of its customers went to its rivals like T-Mobile and Sprint.
Going Back to Unlimited Data Plans
Verizon decided to take matters into its own hands and rejoin its competitors in offering unlimited data plans. If it weren’t for that return, Verizon Wireless could have lost a lot more customers. According to reports, in the first few weeks of the year 2017, Verizon reported a loss of almost 400,000 customers.
When it reintroduce the unlimited data plans, the losses was matched by an influx of 110,000 new customers. Arguably, it is a logical move since people are so concerned with being “connected” 24/7 that an unlimited data plan is a great offer. But why did it take Verizon to join the bandwagon? A part of this reluctance may be due to the rising competition in the wireless industry and the abundance of used Verizon phones available for sale.
Due to a lot of players coming here and there, the veterans of the wireless industry is being forced to adapt instead of the other way around.
Small but They are Many
Smaller carriers are entering the industry. With this entrance comes a lot of new ideas and aggressive moves to help break the share of pie of the bigger companies. These moves have been proven to slowly pay off now. According to an industry analyst, T-Mobile has been able to chip away some of Verizon’s network advantage.
Just this year, T-Mobile has acquired the right to radio spectrum that it will most probably use in order to expand its mobile Internet capacity, which as discussed above is something that customers are looking for. It has also been reported that 3 out of the four nationwide wireless companies are slowly getting closer to network parity in the bigger and major markets.
Time To Treat Current Customers Like Gold
Loyal customers is a very valuable thing to have for a wireless company because there are almost no new customers left in the country. Almost all are already subscribed to a cell service.
As a result of this certain industry characteristic, wireless companies have been engaged in what is known as price wars. In these wars, companies offer exciting and innovative promotions at a competitive terms and conditions in order to poach subscribers from one company to theirs.
These moves have led to the reduction of corporate margins. This intense competition in the industry has led to expansion moves by the smaller players that might hurt the big players such as Verizon and AT&T.