Verizon is often dubbed as “the largest carrier” in the US (it reportedly has the most subscribers), but is that poised to change in the near future?
It’s April 2025 and Verizon has now almost 300,000 monthly mobile phone subscriptions less – this decline is more than double the loss Verizon experienced during the same period in 2024.
The carrier’s decline of the first quarter is sharp – falling short of expectations and highlighting the pressures facing the company in an increasingly competitive market. The exact number of lost wireless monthly phone subscribers is 289,000. It’s a figure well above the 185,500 drop forecast by analysts and it marks a stark contrast to the 568,000 subscribers it gained in the previous quarter.
Part of the downturn, the company said, stems from reduced spending by federal agencies as the Trump administration advances workforce cuts. CEO Hans Vestberg acknowledged that the new government’s cost-cutting initiatives contributed to the decline in service contracts.
Image credit – PhoneArena
Verizon, AT&T, and T-Mobile continue to battle for market share in a saturated environment, and this quarter’s results reflect how intense that rivalry has become. Verizon‘s Chief Revenue Officer previously warned of a slowdown in subscriber growth, citing aggressive holiday promotions by competitors that extended beyond the holiday season – while Verizon had already ended its own. Additionally, more customers are holding onto their devices longer, further dampening subscriber momentum.
To maintain its revenue base, Verizon has increased monthly rates and added fees over recent years. Despite these moves, overall revenue has remained relatively flat for five consecutive quarters. In a renewed effort to retain and attract subscribers, the company recently launched incentives like a three-year price guarantee and free phone trade-ins for customers who sign up for mobile and home internet services.
CFO Tony Skiadas attributed the subscriber losses to recent pricing strategies but remained optimistic, stating that Verizon closed the quarter with renewed momentum. The company also noted that any upcoming increases in handset prices, driven by tariffs on US imports, would be passed on to consumers rather than absorbed by Verizon. Vestberg emphasized Verizon‘s intent to remain financially disciplined despite rising costs, suggesting that higher tariffs would inevitably impact retail pricing.
Some consumers have already rushed to buy handsets ahead of tariff hikes, a trend analysts believe could slightly boost replacement rates in the near future. Although Verizon didn’t see a device sales lift in the first quarter, it expects improvements later this year.
Despite the subscriber decline, Verizon delivered solid financial results. Operating revenue rose to $33.5 billion, slightly beating projections.
AT&T is set to announce its numbers on Wednesday, followed by T-Mobile on Thursday.
