Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Verizon's peers, including T-Mobile US Inc (NASDAQ:TMUS) have been offering unlimited data plans for quite some time.
The Potential To Backfire
But Verizon's plan could backfire, at least according to Roger Entner, an analyst at Recon Analytics. He told Bloomberg Verizon's unlimited data offer is "dangerous," and if it attracts tons of new customers, the network could become congested and clients won't be impressed with the poor quality of the network.
The Bloomberg report further noted that offering customers the ability to download as much as they want and when they want could eat up its profit margins that have already come under pressure.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Moreover, Verizon's move into the unlimited data space marks a reversal from its business of the past few years where it billed itself as a premium network given its top ranks in many studies.
Related Link: Verizon's Network Has A New Top Competitor, And It's Not AT&T
But Verizon could see a surge in wireless traffic a 70 percent to 80 percent annual rate, up from 50 to 60 percent now, according to Chetan Sharma, another wireless analyst.
The Actual Need For Unlimited Data
Sharma told Bloomberg that most of Verizon's customers don't actually need unlimited data plans. However, now that it is at their disposal, these clients hold the power to "wreak havoc" on the network.
"And at the end of the day, I continue to say you cannot make money in an unlimited video world," Sharma also said. "You just can't do it because you need to generate the cash flow to keep up with your demand."
At last check, shares of Verizon were down 1.38 percent at $62.68.
Image Credit: By Anthony92931 (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.