Sprint, AT&T, and Verizon are three popular wireless industry in the U.S. According to a recent survey, AT&T and Verizon are under economic pressure due to competitive moves such as smartphone leases and installment plans, and pricing of Sprint services. In addition, Verizon and AT&T focus on investments outside their core wireless businesses while Sprint is strictly focused on wireless.
Verizon has added more than 200,000 postpaid phone subscribers after the introduction of its unlimited plan. Moreover, Verizon has plans with digital media business, under the name ‘Oath’. Also, it has wireline business which offers video, internet, and landline service.
To win over the customers, Sprint is offering free of cost services to its fresh customers, targeting Verizon subscribers in particular. With such plans, the net postpaid phone subscribers of Sprint has reached to 367,000. Also, its postpaid service revenue has gone down 7% which is a notable struggle to sustain the service revenue.
AT&T provides free HBO to the subscribers of its unlimited plan and those who utilize video services get $25 off. Even so, AT&T is losing its postpaid phone subscribers. Furthermore, the average revenue has fall 3.5% per customer and service revenue is 2.8% down over the last quarter of the year.
While Sprint has lowered their prices to win over Verizon and AT&T customers, soon it will become difficult for the company to generate enough cash-flow. In comparison, AT&T and Verizon are cash-flow giants. In the last 12 months, AT&T has generated $16.5 billion in free cash flow and Verizon has produced $4.7 billion.
Verizon is focusing on growing its subscriber base while AT&T presents higher dividend yield. Thus, for the investors, Verizon is the best buy if they are looking for more exposure in the wireless industry of U.S. They can even go for AT&T if they are comfortable with the declining pay-Tv market.