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Will VZ Stock Benefit From a Three-Year Price Lock Guarantee?
ZACKSยท 2025-04-04 13:40
Core Viewpoint - Verizon Communications Inc. has introduced a three-year price lock guarantee for its myPlan and myHome network plans, aiming to attract new customers and retain existing ones in a challenging economic environment [1][17]. Group 1: Customer-Centric Initiatives - The price lock guarantee ensures that core monthly plan prices for calling, data, and texting will remain unchanged for three years, excluding taxes and fees [1]. - Verizon offers a free phone from major brands like Apple, Google, or Samsung with any myPlan enrollment when users trade in any phone, along with free home internet routers for myHome plans [2]. - Customers can enjoy free satellite text messaging services on qualifying devices and save over 40% on popular subscription services like Netflix and Disney+ [2][3]. Group 2: 5G and Infrastructure Development - Verizon is experiencing significant adoption of 5G and fixed wireless broadband, supported by premium unlimited plans and a mix-and-match pricing strategy [4]. - The company is focused on enhancing its 5G network through massive spectrum holdings, deep fiber resources, and deploying small cells [3][5]. - High capital expenditures are being made to support the launch and build-out of the 5G Ultra Wideband network and significant fiber assets [9][10]. Group 3: Strategic Partnerships - Verizon is exploring a partnership with Banco Santander to enhance customer satisfaction, which may lead to increased customer additions [6][7]. - Santander aims to leverage Verizon's customer base to develop its technology platform for consumer banking in the U.S. [7]. Group 4: Financial Performance and Market Position - Verizon's stock has gained 8.3% over the past year, lagging behind competitors like AT&T and T-Mobile, which have seen gains of 64.2% and 66.3%, respectively [12]. - Earnings estimates for Verizon for 2025 and 2026 have declined by 0.2% and 0.4%, indicating bearish sentiment towards the stock [16]. - The company's wireline division is facing challenges with persistent losses in access lines due to competitive pressures [8][11].