There is something weird going on with one of the biggest wireless growth giants in the industry. Verizon is apparently going downhill while AT&T, another giant in the said business, is rapidly transforming and growing. Sprint, T-Mobile, Comcast, and Charter, other competitors of Verizon, are seemed to be growing also.
With the rest of the wireless companies in the industry growing, why is Verizon and Verizon Wireless going the other direction?
Apparently, the CEO of Verizon said that they are expecting a period of slow growth or maybe no growth at all. Then, it would come as no surprise to them what is happening and boggling us right now. One question remain to be answered: Why?
Because of the slowing growth of the smartphones, carriers need to be the catalyst in order to create the next wave of growth. An example of such is the innovation of wireless TV or mobile TV. Nowadays, a person can watch the television anywhere in the country.
You do not need to be confined within the four walls of your home in order to enjoy a good show. AT&T took advantage of this possible niche when it acquired DirecTV and created DirecTV NOW. The successful innovation of AT&T forced the hand of Comcast to re-join the wireless space with Xfinity Mobile.
Other Companies Are Entering The Fold
Charter was also forced back into the wireless industry with something that will be launched next year. Therefore, one should not be surprised to see other companies going back to the wireless arena again. Will Verizon join the bandwagon too?
We’ll find out soon enough but some are saying that it has to rethink about the wireless television opportunity for its competitors are enjoying growth and it’s not. In the meantime, it seems like Verizon has its mind on somewhere else since it acquired AOL and Yahoo!
The reason why a lot of people have been alarmed with Verizon’s decline is that it is just not who Verizon is. But a lot of people are more skeptical that Verizon will venture into the wireless TV innovation since the company has no track record in this line of business.
This technology is complete new to the company. But with the lack of experience on one hand and the decreasing rate of growth in the other, many people can’t help but speculate.
Inflexibility of Verizon
Verizon proved to be not as flexible as its competitors to market forces. An example of which is when a lot of companies way back have returned to the unlimited wireless data promos. Verizon took its time in joining the companies maybe because it is losing business already.
Verizon was quick to adopt the “Pay As You Go” concept when selling new smartphones to new customers. This model is a huge money make for the wireless companies since they are paying full price. No more subsidies are given. However, shop savvy customers are quick to realize that if they bought used Verizon cell phones, in place of a payment plan, they could save hundreds if not thousands.
Before, Verizon Wireless was very proud in saying that it had the best wireless network. It used to be true. However, with intense competition leveling up the service and promos the wireless companies offer, almost everyone has a great service now.
Perhaps, Verizon can try to be more adaptable to the changes in its industry or we can all watch and see Verizon’s really slow and painful death.