The event of stock assembly led the telecom organization to face the drop out of their shares in the share market. In that situation, Verizon came out with the drop of 0.9% on Monday. At the same time, the T-mobile dropped its share with 2.4% as well as the AT & T dropped its shares with 1.8%. In that context, Sprint lost its share with 1.3%.
With this figure the senior equity research analyst, David Heger mentioned in his statement that this movement in the figures of the companies is the resultants that are absorbed in the price war. Heger has done this analysis along with Edward Jones.
The statement of the price war which has been mentioned in the statement of David Heger is such a situation which has already been continuing from since few years. With that, he added to it regarding the fact that T-mobile who has ended its contract of two years almost four years ago. Similarly, at the same time Sprint, T-Mobile and AT & T started the trend of cancelling all the data plans for the customers. With this action in August 2016, the consumers get the availability to access an unlimited amount of data from their smartphone.
In that condition, Heger added that in that strive for target customers, Verizon was the only company which is available in the market without any type offer.
Previously Verizon has the offer for the customers who take new connections as it was the nation’s largest wireless service provider. But from since 2011 Verizon had cancelled this plan. But with the current scenario, Verizon planned for returning to unlimited games which reached the target customers through TV adds.
In that situation CEO of T-Mobile John Legere took the instant decision of providing unlimited data plans with $70. This plan will also involve the plan for HD video and data usage up to 10 GB of the high-speed hotspot. T-Mobile made the availability of these offers to the target customers without paying any extra fees or taxes for it.
At the same time, Heger mentioned that Sprint and T-Mobile maintained their cheap rates. But Verizon provided an unlimited pack which included the data, talk, and text costing $80 per month for the users of a single line. And for four line users, it costs $180. Heger also stated that Verizon has also stood first regarding its network quality which is quite clearly noticed in its high price rate.
President of Verizon’s wireless division, Mr Ronan Dunne said they have confidence regarding the influx of the customers because of their quality of service. For now, they just want to give more choices to the customers.
With the gradual increase in the scopes, the rivals of Verizon have decreased the gap of their competitive advantage with Verizon. In that Heger mentioned that might be Verizon is searching for more options to win the competition over its competitors. Therefore the plans that Verizon has launched against the competing in the market it will lead the price war to start.