Is Verizon meeting expectations amid AI disruption and rising competition?
Under new CEO Dan Schulman, Verizon is now undergoing a broad and aggressive transformation. Schulman is roughly six months into his tenure. He outlined a two- to three-year turnaround plan, with expectations for improved financial performance beginning this year. Following the company’s latest quarterly report, it’s worth taking a closer look at their progress.
As an Industry Analyst and Strategic Advisor, I follow the telecom and wireless sectors for decades through columns, media interviews, speeches, meetings and client work. My focus is on identifying leaders, laggards, and shifts in the competitive landscape.
I’ve tracked Verizon since its formation in 2000 through the merger of Bell Atlantic and GTE. While the company’s roots stretch back more than a century, the past 10 to 15 years have been challenging for shareholders, employees, and leadership alike.
So far, Schulman is seeing some positive results. Will that good news continue?
Key elements of the Schulman turnaround strategy include:
- Despite losing thousands of wireless subscribers in his first quarter, Verizon reported profits exceeding $5 billion.
- The company has launched an aggressive cost overhaul, cutting approximately 13,000 jobs. At the same time, its broadband unit, FiOS, posted strong Q3 results.
- Schulman is committing heavily to AI, aiming to improve customer service, personalize offerings, and reduce operating costs.
So far, Verizon appears to be stabilizing customer losses, a critical step. It is also showing earnings.
Historically, the company positioned itself as a premium carrier with the highest-quality network. That strategy worked for years, but competitors like AT&T and T-Mobile have significantly improved their networks, eroding Verizon’s advantage.
If network quality is no longer a clear differentiator, pricing becomes more important. Lowering prices could strengthen Verizon’s competitive position in an increasingly crowded and fast-changing market.
Schulman is also working to reduce churn by shifting Verizon’s culture from a network-first to a customer-first mindset. This represents a significant change for a company that has traditionally been slower-moving and less responsive than some competitors.
History offers cautionary lessons. Verizon famously declined the opportunity to be the first carrier for the iPhone. That was a competitive advantage that went to AT&T instead. That kind of missed opportunity is exactly what the company must avoid going forward.
The AI imperative
Looking ahead, Verizon must evolve into a faster, more adaptive, and innovation-driven organization, especially as AI reshapes the industry.
We’ve seen how quickly leaders can rise and fall. Companies like Motorola and BlackBerry once dominated the mobile handset market, only to be overtaken by Apple’s iPhone and Google’s Android ecosystem. The lesson is clear: leadership is never permanent and often unexpected until it occurs.
Today, telecom is entering another major transformation driven by AI, IoT, and other emerging technologies. As with past shifts, there will be clear winners and losers.
Who leads next with 5G AI?
The key question remains: who will lead the next phase of the telecommunications industry? Will it be Verizon, T-Mobile, or AT&T? Or will cable players such as Comcast (Xfinity), Charter (Spectrum), Altice, or Cox gain ground? Or will it be new players?
This industry has undergone wave after wave of transformation over the past century, and the pace of change is only accelerating. AI, in particular, will redefine competition, operations, and customer expectations.
Executives must choose the right path forward. Investors must identify the companies best positioned to win. Employees and customers will ultimately reinforce those outcomes through their choices.
Schulman’s strategy is multifaceted and ambitious. The critical question is whether it will deliver long-term success for Verizon. So far, so good.
For now, all eyes should remain on Schulman, Verizon and its competitors as this next chapter in AI unfolds. I will continue to follow and write about this going forward.
Jeff Kagan
Industry Analyst, Strategic Advisor, Columnist
jeff@jeffKAGAN.com
www.jeffKAGAN.com
Atlanta, GA, USA
