Verizon Focuses on AI Priorities as Customer Losses Slow
Verizon is crediting flexible price plans and streaming bundles for its slowing customer losses.
The wireless provider on Monday (April 11) reported that it lost 68,000 monthly wireless phone subscribers during the first quarter of 2024.
According to a report by CNBC, that was compared to a loss of 127,000 in the first quarter of last year.
The company has said that its myPlan offering is now being used by most of its customers, who have responded to the ability to choose a customizable plan option.
“These incentives, like our popular Netflix plus Max bundle, add value and deepen our customer relationships,” said Hans Vestberg, Verizon’s CEO. “We know our customers extremely well and tailor our offerings to their needs.”
He noted that Verizon in February stopped processing new activations for its affordable connectivity program (ACP), which Vestberg said “caused headwinds for our SafeLink brand.”
The CEO also devoted part of the call to the company’s artificial intelligence strategy, speaking of the need to — among other things — create an AI-centric revenue stream by commercializing the company’s network’s mobile edge computing capabilities.
“Generative AI workloads represent a great long-term opportunity for us,” he said. “As we expand our network and increase our performance advantage, we’re also making Verizon a more efficient organization.”
PYMNTS wrote last month that generative AI was gaining momentum in the telecom sector, offering benefits like better customer experiences and operational efficiency.
Telecom executives, seeing the tech’s potential, are actively adding generative AI into their operations, per findings detailed in the latest edition of the “Generative AI Tracker®,” a collaboration with AI-ID.
“In fact, 87% of telecom executives acknowledge the potential of AI and machine learning (ML) to positively impact both customer experience and customer relationship management, while 67% believe generative AI can improve IT service provision,” PYMNYS wrote.
In addition, legacy providers are teaming with technology incumbents to create generative AI solutions that can streamline operations and improve customer service while also enhancing network performance and personalizing user experiences.
The study also found that localization is playing a major role in the implementation of generative AI in many markets, as telecom companies create localized AI solutions aimed at better customer engagement and operational efficiency.
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