Verizon Inc (VZ) Is Not Concerned With Losing Customers To Cheaper Network Companies

The wireless providers are not ready to make any plans for bringing their lost customers back.

After Verizon Communications made their earnings call for the first quarter earnings for FY15, the CFO of the firm Francis Shammo continued the conference call by saying that the fact that they are losing customers to other companies who are giving lower priced packages to the users does bother them. He said that the firm gives little attention to the ones who have failed to appreciate the kind of quality his company has been providing to the users and if they quit using their connection, it will not be a problem for them. As the company has conveyed it before as well that it values only those users who are loyal to the firm and not those who’d leave their quality service just for lower price rates.

Shammo was further seen to have said that Verizon wireless business is not dependent on the users who are switching to other networking systems and that they do not wish to make any plans to bring these customers back. He also added that for users who just give priority to lower rates than better quality; their network is probably not the ones to be kept.

One thing that cannot be ignored is the fact that Verizon sales have been adversely affected as around a significant 138,000 subscribers of the postpaid system have stopped using the network and switched over to T-Mobile and Sprint Corp instead, who are offering telecom rates which are far lower than what the largest wireless providers in the United States is providing.

This fact, however, has failed to bother Verizon’s management as they are adamant about the fact their company provides much better and qualitative networking system than any other company of its kind. The CFO also said that the loyal customers, which are highly favored by the company, will not leave the exceptional network that the networkers provide them no matter how high the price rates of the wireless providers reach.

Analysts are not taking the wireless company too seriously as they believe that for quite a long time, Verizon has managed to succeed over rivals like T-Mobile and Sprint due to the increasing problems in the management of the firms. This time, however, both the companies have taken the competition away too seriously as considerable changes have been brought about by the management which means that the largest wireless providers now need something to be concerned of.

Verizon now needs to work towards spreading its network out to more and more users and to increase the low-band spectrum for further sales and usage of the network.