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Verizon (VZ) has no plans to hold back on investing in network infrastructure despite looming recession fears.
Verizon CEO Hans Vestberg said on Yahoo Finance Live: “This is our peak year. The new spectrum we purchased is actually running now and as fast as we can.”
As Verizon continues to invest heavily in its network infrastructure, the company has announced some price increases this year to offset increased capital spending, depending on your subscription plan.
These service fee adjustments come as consumers continue to adjust for higher prices while inflation remains at a 40-year high.
Verizon’s shares fell more than 4% on Friday after the company reported subscriber declines. Vestberg noted that the decline in subscribers was expected after the price changes were rolled out, and argued that it should ease over time.
Vestberg said: time to do it. ”
Verizon’s calculated decision to raise rates for its customers, knowing that some subscribers may be deterred by higher prices, will see telecom giants compete over latency levels and network reliability. This is not uncommon in the industry because we are spending on
AT&T Chief Financial Officer Pascal Desroches told Yahoo Finance on Thursday that the company will invest in its network. Desroches also expressed confidence in AT&T’s ability to continue to invest in improving the speed and reliability of its network during the recession.
Despite the current risk of a recession wrought by the Federal Reserve, telecom services executives share the hope that core products will be resilient.
“It’s a little bit complicated because everyone is reading what’s going on in the macro economy with higher inflation and higher interest rates,” Bestberg said. We’re in the basic product. Everyone needs mobility, everyone needs to be connected.”
Brad Smith is an anchor for Yahoo Finance. follow him on twitter @thebradsmith.
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