Verizon Says Shift Away from Subsidies is Paying Off — Market Talk

What happened

Verizon CEO Dan Schulman said shifting away from heavy subsidies toward offerings like its expanded loyalty program and Simplicity Plan is helping gain and keep customers. The latest quarter brought 406,000 net postpaid phone additions, its strongest third quarter in five years, plus 137,000 postpaid net account additions.

Confirmed

Global impact / market context

Fewer subsidies means Verizon spends less to attract each customer, which can support profit per sale and cash available. Winning customers on revenue-positive terms, as the CEO describes, suggests growth is not being bought through discounts, a shift investors may weigh against subscriber gains.

Analyst inference

Telecom carriers often use device subsidies to win subscribers, which raises costs and can attract customers who leave easily. Verizon's results suggest its loyalty and plan-based approach is retaining users longer, a contrast that could shape how investors compare carriers' subscriber growth and spending.

Analyst inference

What to watch

1. Verizon reported 406,000 net postpaid phone additions and 137,000 postpaid net account additions in the latest quarter, figures the CEO called multi-year bests. Confirmed
2. Watch whether Verizon keeps expanding the loyalty program and Simplicity Plan, since the CEO ties customer gains and retention to these offerings rather than to subsidies. Proposed
3. Track whether lower subsidy spending shows up in future costs and cash available, and whether subscriber growth holds without buying customers through discounts. Analyst inference

Evidence

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