Verizon slides after announcing it's bringing back an unlimited data plan (VZ)

pulse

February 13, 2017 3:42 PM

The company is launching an unlimited LTE data plan on Monday.

Verizon

that it will launch an unlimited LTE data plan, "Verizon Unlimited", on Monday February 13th.

This is the first time in more than five years that Verizon, the nation’s largest carrier in terms of total subscribers, will have an unlimited offering. The new plan comes on the heels of other renewed and aggressive pushes into unlimited data from rival carriers, most notably T-Mobile, which in August replaced all of its existing mobile plans in favor of one unlimited offering, titled T-Mobile One.

According to equity analysts at Jefferies in a note released on Monday, "Verizon's re-introduction of unlimited wireless, along with a free phone promotion, likely reflects the challenges of maintaining handset share with premium pricing as the industry has rapidly moved to unlimited offerings. Historically, VZ has indicated the belief that unlimited data devalues the network and does not provide proper returns."

Jefferies analysts maintain a "Hold" rating with a price target of $51.

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