Best Strategy: Keep Customers Happy
5. Reassure enterprise customers
Right now, enterprise customers are undoubtedly concerned about the impact the AT&T acquisition of T-Mobile USA might have on their operations. What does it mean for their plans? How will it affect service? All of these questions remain unanswered. Although AT&T says things will improve, that's not always the case. Verizon should remind enterprise customers that Verizon is the stable choice. When they work with Verizon, they know what they're getting. Consistency matters to enterprise customers. Verizon should use that to its advantage.
6. Don't acquire Sprint
When Verizon's top executives walked into the office on March 21, they might have thought that acquiring Sprint would be the next logical move to stem AT&T's growth. But that's perhaps the last thing Verizon should do. Sprint isn't an attractive buy. It would be too costly, and the net gain in subscribers wouldn't be nearly as great as the company would like. For now, Verizon must hold on to its cash and keep trying to build its subscriber base. Trying to do so with Sprint would be a mistake.
7. Win on price
Who knows how AT&T will structure its service charges after T-Mobile is finally acquired? Although the company says it will benefit customers, there's no telling if prices will go up, data rates will change or any number of other oddities will arise. If Verizon wants to overcome this acquisition, it needs to start winning on price now. It can reduce service charges, continue to offer unlimited data over 3G and invest in other money-saving opportunities for customers that will not only help it retain current subscribers but add more.
8. Focus on the service
Currently, Verizon has the market cornered in one key area: It's the best service provider in the space. The company must maintain that lead at all costs. No matter how many subscribers AT&T might have or cell towers it puts up, Verizon should always stay one step ahead on mobile phone service. If customers see better coverage from Verizon, they won't stick with AT&T. It's as simple as that.
9. Reassure investors
As a public company, Verizon has a responsibility to maximize shareholder value. But it can only do that if it has a plan to be better than every other company in the market. Right now, it should be working on a plan to limit the impact AT&T's T-Mobile acquisition will have on its operation that it can bring to investors. Its shareholders need to be reassured that it can handle this bit of adversity. One of the first orders of business should be addressing that.
10. It's time to advertise
Verizon has always had a big advertising budget, but now that AT&T has plans to take over T-Mobile USA, the time has come for the carrier to spend even more. Verizon needs to push its best offers, talk about its best devices and gloat about its coverage. It needs to blanket the airwaves making it clear that it delivers the best offering of any company in the market. With T-Mobile USA in tow, AT&T will be a huge force. Verizon can limit its power if it can start to win customers one by one starting today.