3 Telecom Stocks Seeing Action: Verizon’s Network, T-Mobile Axes BlackBerry, AT&T Likes Europe
Verizon Communications (NYSE:VZ): Verizon’s chairman and CEO, Lowell McAdam, said in an interview with CNET that Verizon will never again offer unlimited data plans because they are not viable with the data demands of today’s users. In response to Verizon’s premium prices relative to T-Mobile and Sprint, McAdam said Verizon does not compete with other carriers on price but instead competes on product with its superior network, which reportedly has the largest 4G LTE footprint in the United States.
T-Mobile US (NYSE:TMUS): T-Mobile has announced that it will cease stocking BlackBerry (NASDAQ:BBRY) phones in its retail stores but continue to display them and allow customers to order the phones on request. A T-Mobile spokesperson said that the carrier is no longer carrying BlackBerry phones because they are not in high demand, and T-Mobile’s executive vice president for corporate services, David Carey, said that carrying the phone in stock was inefficient for the company.
AT&T (NYSE:T): AT&T CEO Randall Stephenson spoke about the positives and negatives of expanding into Europe this week, saying that there are opportunities for growth due to the lack of mobile applications in Europe. The company faces hurdles in Europe, however, due to the continent’s different regulatory schemes and its price-sensitive market. Craig Moffett, founder of researcher MoffettNathanson LLC, said to Bloomberg: “You can understand why AT&T wants to diversify. AT&T’s position in the U.S. market looks to be a bit precarious right now, and U.S. valuations are still at near all-time peaks, so there has to be at least some interest in using that currency while it’s still exciting.”