Company Reports

Shares of US wireless carriers and tower firms traded lower after SpaceX claimed that it will use satellite dishes to build a wireless network capable of competing in the US wireless industry. SpaceX also claimed that it will launch 10 times as many V3 broadband satellites as V2.

Wireless competitive intensity has increased recently, but we expect Verizon and its two primary wireless rivals, T-Mobile and AT&T, to compete rationally in the coming years. That said, we expect Verizon to struggle to grow as fast as its rivals, even with the shift to lower service pricing and a stronger focus on customer satisfaction.

Verizon reported a 3.5% increase in service revenue during the second quarter. Excluding the benefit of the Frontier acquisition, service revenue was down about 1.7%. Wireless and fiber broadband growth improved, flipping to a small increase from a small decline last quarter.

Verizon was the big bidder in Auction 113, spending $3.2 billion on 82 spectrum licenses. T-Mobile picked up more than 100 licenses, nearly all in small markets, for only $277 million. AT&T added 13 licenses for $133 million. SpaceX did not bid aggressively, landing two licenses for $8 million.

Bidding in FCC Auction 113 has concluded, placing licenses that have been dormant since EchoStar subsidiary Dish Network failed to pay for them more than a decade ago. The auction resolves the related dispute between the FCC and EchoStar. We should know the winning bidders in the coming days.

Verizon grew revenue 2.9% during the first quarter, but we estimate sales would have been down about 1% excluding the Frontier acquisition. Adjusted EBITDA expanded 6.7% (about 3% excluding Frontier) on strong cost-cutting following a large workforce reduction last year.

Wireless competitive intensity has increased recently, but we expect Verizon and its two primary wireless rivals, T-Mobile and AT&T, to compete rationally in the coming years. That said, we expect Verizon to struggle to grow as fast as its rivals, even with new CEO Dan Schulman's pledge to focus more intently on customer satisfaction than in the past.

Verizon delivered improved customer metrics during the fourth quarter, adding 22% more postpaid wireless phone customers than the prior year. Wireless service revenue growth slowed to 1% from around 2.5% over the prior several quarters, reflecting competitive intensity in the market.

Wireless competitive intensity has increased recently, but we expect Verizon and its two primary wireless rivals, T-Mobile and AT&T, to compete rationally in the coming years. That said, we expect Verizon to struggle to grow as fast as its rivals, even with new CEO Dan Schulman's pledge to focus more intently on customer satisfaction than in the past.

Verizon reported decelerating growth in the third quarter, with service revenue up only 0.8% year over year. Wireless customer additions remained weak, while competitive intensity weighed on revenue per customer. New CEO Dan Schulman outlined his plans, including a commitment to the dividend.

Verizon's revenue growth reached 5% year over year, driven by a surge in phone upgrades. Service revenue growth remained below 2%. Free cash flow hit $8.8 billion during the first half of 2025, up 4%. Management raised 2025 cash flow expectations to $19.5 billion-$20.5 billion on tax savings.

Wireless competitive intensity has increased recently, but we expect Verizon and its two primary wireless rivals, T-Mobile and AT&T, to compete rationally in the coming years, allowing each to generate consistent financial results. That said, we expect Verizon will struggle to grow as fast as its rivals.

Verizon posted solid first-quarter financial results amid weak customer metrics. Wireless service revenue increased 2.7% compared with a year ago, despite the loss of 289,000 net postpaid wireless phone customers during the quarter. EBITDA increased 4%, the fastest pace in nearly four years.

Verizon Communications is primarily focused on the wireless business. We expect the firm and its two primary wireless rivals, T-Mobile and AT&T, to compete rationally, allowing each to generate consistent financial results in the coming years. That said, we expect Verizon will struggle to grow as its market share lead erodes. Slowing industry growth could also cause some challenges as the wireless carriers attempt to hit short-term customer growth targets.

On April 2, the Trump administration announced broad tariffs on US trading partners, sending markets tumbling. Shares of US wireless and fixed-line telecom providers are mostly unchanged, with phone carriers up slightly and cable providers seeing a small decline in April 3 trading.

Verizon indicated at an investor conference that wireless competition has been more aggressive than usual thus far during the first quarter. Its shares slid 7%, giving back all the gains from a sharp rally over the prior week. AT&T and T-Mobile shares also dropped about 3%.

Verizon delivered modest growth during the fourth quarter, with wireless service revenue increasing 3.1% year over year. Net postpaid wireless customer additions improved slightly from a year ago. Free cash flow was very strong during the quarter but benefited from the sale of wireless towers.

Third-quarter wireless service revenue increased 2.7%, while phone sales continued to decline. Verizon added 81,000 net postpaid consumer wireless customers versus a 51,000 net loss a year ago. Adjusted EBITDA increased 2.1%, while free cash flow dipped slightly on higher cash taxes.

Verizon Communications is primarily focused on the wireless business, where it has taken steps to ensure it remains well positioned, building fiber deeper into major metro areas and acquiring wireless spectrum to increase network capacity and performance. We expect Verizon and its two primary wireless rivals will compete rationally, allowing each to generate consistent financial results in the coming years.

Verizon will acquire Frontier Communications in an all-cash transaction at $38.50 per share, valuing Frontier at $20 billion with the assumption of debt. We are relieved that Verizon didn’t use its shares, which we believe are undervalued, or pay a huge premium on top of the jump in Frontier’s shares on Sept. 4. We are leaving our Verizon fair value estimate at $53.