Verizon is holding its ground against cable companies such as Comcast and Charter in the mobile space, confident in its competitive position. Despite cable MVNOs like Xfinity Mobile and Spectrum Mobile gaining customers rapidly, Verizon believes it is poised for success. The company's chief revenue officer, Frank Boulben, asserts that Verizon is seeing improvement in its port ratios against these cable MVNO offerings, indicating a shift in the market dynamics.
According to Boulben, cable MVNOs may be reaching a saturation point and losing mobile customers, despite not publicly disclosing such trends. This development is contributing to Verizon's enhanced port ratios. While Verizon recently faced the loss of postpaid phone customers, the relationship with cable MVNOs remains mutually beneficial as Verizon continues to generate revenue through wholesale partnerships.
Boulben highlights that the financial impact of losing a retail customer to cable companies is offset by the wholesale revenue gained when the cable providers acquire customers from other competitors. Despite ongoing negotiations to amend MVNO agreements with Comcast and Charter, Verizon remains optimistic about its partnerships and aims to strengthen its position in the market.
Moreover, amidst growing competition from AT&T and T-Mobile, Verizon is focused on maintaining customer loyalty and satisfaction, as reflected in its Net Promoter Score. Boulben emphasizes that eliminating customer-disliked practices, such as those observed in MVNO operations, can enhance overall customer experience and retention rates.
