It looks like Verizon Wireless is currently facing a big threat from its competition. Now that companies like Sprint and Comcast’s Xfinity Mobile have taken on the Bring Your Own Device (BYOD) trend, analysts from Deutsche Bank believe there is some healthy competition that can be expected by Big Red.
Nowadays, people hold on to their devices for a longer period of time. This is largely due to the prevalence of options like equipment installment plans (EIP) and ‘no-subsidy’ rate plans that aim at giving customers incentives for holding onto their devices. And with the onset of different BYOD promotions offered by wireless companies as a way of enticing customers to switch carriers, this could be a pretty big problem for big stateside carriers such as Verizon.
One such threat that Verizon is facing comes from Sprint, who is currently trying to convince the carrier’s existing users to switch to their network. How is it doing this? By offering a free year of unlimited service. The other threat comes from Xfinity Mobile, which currently supports BYOD from select devices. It’s important to note, however, that the MVNO runs under Verizon’s network.
Although these could be big blows to Verizon, there is reason to believe that things won’t be so difficult for the carrier. Analysts from Wall Street predict that the carrier could be reporting solid numbers in its Q4 earnings call, which will take place tomorrow.