Verizon reported revenue growth in an earnings call this week, but CFO Fran Shammo did make clear the carrier doesn’t plan on offering an unlimited data plan despite market pressures.
According to reports, Shammo said in an interview following the earnings call, “At this point, we are not going to entertain unlimited.”
“Promotions come and go,” Shammo continued. “We can’t react to everything in the marketplace.”
On Jan. 12, AT&T offered new and existing AT&T Mobility customers who have or add either one of the two television services can move to the carrier’s Unlimited Plan priced at $100 per month for the first line of service. Second and third lines of service can be added for $40 per month, with the fourth line eligible for free. AT&T Mobility is touting the offer allows unlimited services across four lines for $180 per month once the fourth line discount kicks in.
The rate plans include unlimited calling, text messaging and data access, with AT&T linking the unlimited data aspect to customers being able to access unlimited video services from either one of its television platforms. The additional lines can include tablets or smartphones for the $40 per month access fee, basic/messaging phones for $25 per month, or smartwatches and other “select” connected devices priced at $10 per month.
Verizon Wireless said it added nearly 1.4 million “retail” customers during the fourth quarter, which was down a significant 34.1% compared to the same quarter in 2014. The latest results included 1.5 million postpaid net additions, which was down 23.5% year-over-year, and a loss of 157,000 prepaid customers compared with a gain of 81,000 prepaid customers in 2014.
Tablets continue to be the driving force for Verizon Wireless’ growth, as the device segment tallied 960,000 net additions for Q4. Smartphones, which generate higher monthly service revenues, witnessed 713,000 net additions, though was offset by a net decline in basic phones.
For the full year, Verizon Wireless said it added nearly 4 million retail customers, which was down 29% from 2014. All of its 2015 growth was from the postpaid side of its business, which posted 4.5 million net additions while its prepaid business lost 551,000 customers for the full year.
Get a full breakdown of Verizon’s results here.
