Verizon, AT&T, and T-Mobile are set to face soft wireless subscriber growth in 2025 indicating there will be a pressure on revenue and profit.
Verizon Communications has issued a warning about “soft” wireless subscriber growth in the first quarter of 2025, attributing it to off-season promotions by competitors that continued beyond the typically aggressive December quarter.
Verizon’s shares have dropped more than 7 percent.
AT&T shares fell 5.3 percent after the company flagged higher subscriber churn for January.
T-Mobile US shares declined 4 percent.
Verizon Chief Revenue Officer Frank Boulben, speaking at Deutsche Bank’s Media, Internet & Telecom Conference, explained that Verizon had pulled back on customer incentives, whereas its rivals maintained aggressive promotions, intensifying competition in the United States telecom market.
Promotional offers have helped drive wireless subscriber additions – raising concerns about profitability, Reuters news report said. Analysts pointed to the shrinking opportunities for mobile subscriber growth, with broadband giants such as Comcast entering the wireless market with aggressive pricing strategies. This increased competition has pressured major carriers, leading to strategic shifts in their approach to customer retention and acquisition.
Verizon signaled a slow start to phone upgrades in the first quarter, with customers appearing hesitant to make purchases amid economic uncertainty and a lack of major new features in devices. However, the company reaffirmed its target of achieving single-digit growth in annual phone upgrades, expecting a rebound later in the year.
Verizon projected stronger performance in 2025, with plans to add more monthly bill-paying wireless subscribers than the 900,000 it added in 2024. The company aims to leverage its customizable myPlan offering to attract and retain customers.
Despite the slow start in 2025, U.S. telecom firms enjoyed a strong fourth quarter in 2024, driven by bundled plans that combined 5G services with high-speed fiber data and streaming services. These offerings helped boost customer engagement and revenue, setting the stage for sustained competition in the industry.
Verizon and AT&T addressed concerns about potential impacts from tighter U.S. immigration policies implemented by President Donald Trump and team. The latest immigration restrictions raise concerns about a potential reduction in new customer pools for telecom companies.
Verizon downplayed the impact, stating that postpaid subscribers are required to provide identification for contracts, limiting any significant effect. If there is any impact, it is expected to be minimal and mainly confined to the lower end of the prepaid market, Verizon said.
Additionally, both Verizon and AT&T dismissed concerns about competition from satellite internet providers such as SpaceX’s Starlink. While satellite-to-cell connectivity is an emerging technology, AT&T CFO Pascal Desroches noted that traditional wireless services remain more reliable and cost-effective for most consumers. Verizon echoed this sentiment, suggesting that direct satellite connectivity is a logical advancement but not yet a major business opportunity.
T-Mobile has taken a step forward in this space, announcing the launch of its satellite-to-cell service, powered by SpaceX’s Starlink, in July for $15 per month. This move signals increasing competition in alternative connectivity solutions, which could further reshape the competitive landscape in the coming years.
