AT&T and Verizon Say Margins Squeezed in Price Battle

The video discusses the current challenges faced by telecom companies like Verizon and AT&T due to increased competition and price wars. Verizon's margins and EPS are expected to decline, while AT&T is also affected but anticipates growth in net ads. The telecom industry is experiencing a promotional period, but this is expected to stabilize. Companies are moving away from unlimited data plans and are exploring new revenue streams through content delivery and connected devices. The future growth of telecoms may rely on offering wireless video and integrating with connected home and car technologies.

What is the main reason for the reduced margins and earnings per share for Verizon?

• Increased operational costs

• Regulatory changes

• Decline in customer base

• Heightened competitive activity

Which companies are identified as the instigators of the telecom price war?

• Sprint and T-Mobile

• Verizon and AT&T

• Comcast and Charter

• Google and Apple

What is the expected outcome of the current promotional environment in the telecom industry?

• It will lead to permanent changes in pricing

• It will eventually stabilize and return to normal

• It will cause a significant loss of customers

• It will result in mergers between major companies

What type of content is expected to drive future growth for telecom companies?

• Long-form movies

• Short-form video and sports content

• Music streaming

• E-books and audiobooks

How are connected devices expected to impact telecom companies' revenue?

• They will decrease revenue due to high maintenance costs

• They will have no significant impact

• They will lead to increased customer complaints

• They will add new revenue streams