Under the price war, Verizon lost mobile users in Q3. New CEO Schulman vows to implement "bold reforms" to break the deadlock

According to the Zhitong Finance APP, Verizon (VZ.US), the largest mobile service provider in the United States, experienced a loss of wireless phone users in the third quarter, marking the first major test for new CEO Dan Schulman. According to Verizon's financial report released on Wednesday, the New York-based operator lost 7,000 consumer mobile users in the three months ending September 30, compared to an increase of 18,000 users in the same period last year. Schulman, who was previously the CEO of PayPal (PYPL.US), took over the company from Hans Vestberg a few weeks ago after Verizon saw user declines for two consecutive quarters and its stock price lagged behind its two main competitors. Currently, the three major telecommunications operators in the United States are engaged in an intense battle for new users, with all three companies launching high-cost promotional activities and incentives to attract users to switch networks. Last week, AT&T (T.US) announced an addition of 405,000 users in the third quarter, while T-Mobile (TMUS.US) added 1 million users. However, due to Wall Street's concerns about the escalating price war, the stock prices of both companies fell. In recent years, Verizon has boosted revenue by increasing monthly fees and various charges, but this approach essentially extracts more profits from a shrinking user base. Although the company's overall balance sheet remains strong, some Wall Street observers believe that Verizon has been left behind by AT&T and T-Mobile's more aggressive promotional strategies, and they are watching Schulman clarify the new development strategy. Schulman stated that he would take immediate action to drive change. "At this critical turning point for the company, we will take bold and financially sound actions to redefine Verizon's trajectory," he said in a statement. "These changes will not be incremental adjustments. We will actively transform the corporate culture, cost structure, and financial condition to be customer-centric, effectively compete, and deliver sustainable returns to shareholders." It is reported that Verizon announced on Monday a partnership with Eaton Fiber LLC, a subsidiary of Tillman Global Holdings, to expand broadband services beyond the Fios network coverage. At the same time, Verizon is also advancing the acquisition of Frontier Communications Parent Inc. (FYBR.US) fiber network, which is expected to be completed early next year. BNP Paribas analyst Sam McHugh noted in a research report that these initiatives "indicate that Verizon's strategy will continue to evolve, with a greater focus on fiber business and business integration." He emphasized that "the strong performance of T-Mobile and AT&T has pushed industry competitive pressure to a critical point, ultimately prompting Verizon to make a change at the highest leadership level." Third Quarter Performance Despite facing challenges, Verizon's performance in the third quarter remained robust. The company's Q3 revenue reached $33.8 billion, a year-on-year increase of 1.5%. Among this, the wireless service revenue, excluding equipment purchases and upgrade costs, was $21 billion, in line with analyst expectations. The earnings per share, after deducting certain costs, was $1.21, compared to the market expectation of $1.19. With the launch of the new generation iPhone series, the series of promotional activities launched by the company successfully helped attract more customers, with a total of 44,000 new monthly paying wireless users in the consumer and business sectors in the third quarter, exceeding the market expectation of 19,000. Among them, Verizon's customized plan myPlan, which offers a three-year price guarantee, continues to be favored in the market. Over 18% of the company's consumer postpaid users have chosen plans that include broadband services. In the third quarter, the company added 306,000 broadband users. For the full-year performance, Verizon reiterated that adjusted EBITDA is expected to grow by 2.5% to 3.5%, free cash flow is expected to be between $19.5 billion and $20.5 billion, and capital expenditures will be controlled within the previously guided range of $17.5 billion to $18.5 billion or below that range. After the earnings report was released, as of the time of writing, the stock rose nearly 4% in pre-market trading