Verizon’s plan: Consumers win, investors lose

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Verizon’s plan: Consumers win, investors lose

Verizon Communications Inc. has announced a plan to anticipate an anticipated growth in data use from customers by investing heavily in its wireless a

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Verizon Communications Inc. has announced a plan to anticipate an anticipated growth in data use from customers by investing heavily in its wireless and fiber optic networks. On the surface, the move appears to benefit consumers, who will have improved access to their data and more reliable connections, but investors are not so thrilled.

The $17 billion plan calls for the development of a 5G network, which will offer faster speeds than current 4G technology and the expansion of its fiber optic network by an additional 1.2 million miles. Verizon expects the move to enable them to serve more customers, as well as to provide an improved quality of service.

The plan is a positive one for consumers, as it brings more access to data and a better connection overall. With people increasingly reliant on their mobile devices and mobile data, the boost that 5G and expanded fiber optics provide could be vital for consumer satisfaction.

However, for investors the news is not as good. The move is expected to reduce earnings in the near term, as much of the cost of the $17 billion investment will be borne by shareholders. This is likely to be reflected in the share price in the short term and may cause some to question the wisdom of the move.

Overall, Verizon’s investment plan is aimed at ensuring that their customers have access to the best services and experience possible. While this could lead to a drop in earnings over the short term, the long-term benefits could be far greater as they aim to keep pace with the demands of their customers. In the end, it appears that consumers are likely to benefit the most from the move, while investors will likely have to accept a short-term reduction in their returns.

Verizon’s Plan: Consumers Win, Investors Lose

Verizon recently announced a new plan, leaving investors scratching their heads. The communications giant promised their customers reductions in wireless bills and free apps, but at what cost? Here’s a closer look at Verizon’s new plan and what it means for customers and investors.

Customers Win

Verizon promised to deliver several benefits to their customers that are sure to entice them to stay with the company. These include:

  • Cheaper Prices: Verizon is slashing prices on its introductory plans. Customers will soon pay only $30 a month for a single line.
  • More Phone Plans: Verizon will be offering customers the ability to choose their own amount of data, minutes and text messages to customize their plans.
  • Free Apps: Verizon is offering seven different apps for free, allowing customers to access streaming music, movies and other content.

All of these benefits are sure to make Verizon more attractive to potential and existing customers.

Investors Lose

Verizon’s plan comes at a cost, and unfortunately it’s the investors who will bear the brunt of it. The company will be spending $1 billion over the next few years to implement these new services, and those costs will have to come from somewhere.

This could lead to lower profits for investors in the short-term. Additionally, the new plans could put downward pressure on Verizon’s stock price, as investors worry about the company’s ability to make a profit.

Final Thoughts

The real winners in Verizon’s plan are the customers. With cheaper prices and more options, they are sure to be satisfied. Investors, however, may not be as thrilled with the news. In the short-term, they may see their profits dip due to the costs associated with the new services. Time will tell if the move is a successful one for Verizon.

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