Verizon Has Turned the Corner on Free Cash Flow, Creating a Path to Strengthen the Balance Sheet

Verizon Communications is primarily focused on the wireless business, where it has taken steps to ensure it remains well positioned, building fiber deeper into major metro areas and acquiring huge chunks of wireless spectrum to increase network capacity and performance. We believe these resources will allow Verizon to deliver consistent financial results in the coming years. However, we expect growth will be very modest, as the wireless business is very mature, and AT&T and T-Mobile offer comparable services at similar prices. We expect Verizon and its two primary rivals will compete rationally, each attracting a similar number of customers quarter in and quarter out, diminishing Verizon’s market share lead over time.