Verizon’s consumer chief: Net neutrality ‘went literally nowhere’

Key takeaways

Verizon's consumer division manages a huge part of the company with significant market influence, focusing on both wireless and broadband services.
The investment in 5G is seen as essential for future growth, but the realization of expected benefits and applications has been mixed.
Sowmyanarayan Sampath questions the value of net neutrality and emphasizes the importance of regulation that balances service delivery and competition.
Verizon actively seeks to enhance customer experience through flexible pricing strategies based on direct feedback and AI analytics.
The telecom market is becoming increasingly competitive, prompting Verizon to innovate while staying committed to its core business.

Summary

Overview of Verizon's Consumer Business

Sowmyanarayan Sampath, the CEO of Verizon's consumer division, discusses the vast size and coverage of Verizon, handling over 115 million wireless connections plus a significant number of broadband connections through Fios. He emphasizes the structure of the consumer group, explaining how it interfaces with other divisions and its responsibilities, focusing on sales, marketing, and customer care.

5G Investment and Industry Dynamics

The conversation delves into the impact of Verizon's massive investments in 5G technology. Sampath addresses the perceived 'race' against China, evaluating whether the extensive development in 5G has delivered anticipated benefits and new applications. The expectation versus reality of 5G is explored, discussing promises around advanced technologies such as autonomous driving and robotics, and how the industry must now deal with consumer expectations.

Net Neutrality and Regulatory Challenges

Sampath presents his views on net neutrality, arguing against its necessity. He discusses regulatory pressures faced by Verizon under the current administration, particularly regarding diversity, equity, and inclusion (DEI) policies that affect deal approvals, specifically the Frontier deal. This segment reveals the contrasting regulatory landscapes over time and how they impact corporate strategy.

Customer Experience and Pricing Strategy

Discussing customer sentiment, Sampath explains Verizon's recent decision to offer a three-year price lock to provide customers with stability amid economic uncertainty. He reflects on how the company is tuning its pricing strategies based on comprehensive customer feedback and AI-driven insights, highlighting the importance of certainty and flexibility in service offerings.

Future Direction of Verizon and Industry Competition

In this section, Sampath speaks on the competitive landscape, recognizing challenges posed by other players and the need for continuous investment in infrastructure to maintain quality. He also touches on opportunities in the advertising and media space, discussing Verizon's approach to partnerships and bundling content without overextending into operations beyond its core competencies.

Show notes

As CEO of Verizon's consumer division, Sowmyanarayan Sampath oversees the biggest part of the company, which does business with roughly a third of the entire country. He's a longtime Verge reader, so we talked very directly about whether the huge 5G investment had actually paid off, and whether – whether the “race” we were supposedly in with China was actually worth it, and what kinds of new apps and services actually come to light.

And while Verizon fought tooth and nail against regulations like net neutrality, the current Trump administration isn’t nearly as hands-off when it comes to things like holding up deals because of DEI policies — something that’s happening to Verizon right now. So I had to ask Sampath if he was going to push back on that kind of government overreach as hard as Verizon has in the past.

Links:

The US government makes a $42 million bet on OpenRAN | The Verge

FCC scrutinizes Verizon’s $9.6 billion Frontier deal over DEI | USA Today

Verizon offers a three-year price lock — but there’s a catch | The Verge

T-Mobile updates its DEI policy to get Lumos deal approved | Fierce Network

We don’t need net neutrality; we need competition (2014) | Ars Technica

Wireless and cable industries sue to kill net neutrality (2015) | The Verge

Everything Verizon says in this terrible video against net neutrality (2017) | The Verge

Report: Most Americans have no real choice in internet providers | ILSR

T-Mobile’s merger promises couldn’t make a carrier out of Dish | The Verge

Transcript: https://www.theverge.com/e/652470

Credits:

Decoder is a production of The Verge and part of the Vox Media Podcast Network.

Our producers are Kate Cox and Nick Statt. Our editor is Ursa Wright.

The Decoder music is by Breakmaster Cylinder.
Learn more about your ad choices. Visit podcastchoices.com/adchoices