According to its report, the company lost 68,000 postpaid subscribers in the first quarter alone. The pandemic caused the company to shut down 70% of its wireless retail stores. As for the locations that remained open, these operated with reduced hours. This resulted to 50% less postpaid gross adds and 41% loss on upgrades and a 1.6% year-over-year revenue decline.
As for its prepaid business, the company reported 84,000 net losses. Prepaid consists of 4.3% of Verizon's overall retail consumer base or 3.3% of overall retail sub base. Its overall net add numbers for the prepaid sector are negative.
Despite these, Verizon CEO Hans Vestberg promises that its network is holding up well for the usage demand requests. They are also remaining strong for the business demands. The CEO shared that they are"on plan with the 5G and fiber."
Even though there is a health crisis and people are being urged to stay at home, Verizon is working hard to get approvals from municipalities. They have done this digitally.
The pandemic has also led around 800,000 customers to call Verizon and share their difficulty in paying their bills. But they do not intend to stop paying completely. The company's CFO, Matt Ellis, shares that"we're seeing a better overall performance in terms of the customer payment profile", as compared to the mortgage and auto loan sectors. The executive shares that"We have a very important product for our customers and they value it."