Verizon Sees Major Drop in Prepaid Subscribers Following Subsidy Program Closure
Verizon's Subscriber Decline
Verizon Communications reported disappointing quarterly revenue estimates on Monday, primarily due to a sharp drop in its prepaid wireless subscribers.
Impact of the Affordable Connectivity Program (ACP)
The telecom operator lost 624,000 wireless retail prepaid subscribers in the second quarter, largely attributed to the conclusion of the Affordable Connectivity Program (ACP) in May. This program had provided internet subsidies to approximately 23 million households across the United States.
Financial Consequences
- The end of the ACP has resulted in a substantial decline in subscribers.
- More than half of the prepaid losses are connected to the program's expiration.
- Verizon's shares fell by more than 6% following the report.
As telecom carriers prepare for the impact of the subsidy program's ending, Verizon must now navigate this challenging environment to regain subscriber confidence and stabilize its revenue streams.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.