📉 Verizon warns of weak subscriber growth - telecom sector under pressure! 📡

Verizon Communications $VZ has announced that competition in the telecom sector is sharpening and expects weak subscriber growth in the first quarter. The company's shares responded by falling by more than 7 %.

Verizon has decided to cut back on marketing incentives, while competitors are still offering aggressive promotions to retain customers. The U.S. mobile market is saturated, so telecom firms are trying to attract new users with discounts, bargain packages and premium services. While this increases the number of subscribers in the short term, it raises concerns about the profitability of the entire sector.

Verizon, however, expects an improvement - It believes that in 2025 will add more subscribers than last year, when it added 900 000.

AT&T reports customer churn in January, adding to the pressure on the industry.

Combination 5G, fiber optics and streaming services helped the sector grow in Q4but the question is whether this trend will last.

🌍 Impact of the new policy:
Verizon a VERIZON AND AT&T WILL CONTINUE TO BE THE MOST EXPENSIVE CARRIERS IN THE WORLD. also said they do not expect a significant impact on their business from the tightening of immigration laws. Although Trump's administration is introducing stricter asylum policies, the telecoms say it will only affect the lower end of prepaid customers, not key rate plans.

💡 Competition vs. innovation
An interesting factor going forward may be satellite internet, as Starlink from SpaceX. AT&T a Verizon are not yet taking this competition seriously, claiming that wireless networks remain more reliable and affordable.

What is your view of the telecommunications sector? Is it a stable investment with a nice dividend for you?