Verizon’s consumer chief: Net neutrality ‘went literally nowhere’
Apr 21, 2025
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Sowmyanarayan Sampath, CEO of Verizon’s consumer division, shares insights on the telecom landscape. He discusses the substantial investments in 5G and the value of competition versus net neutrality. Sampath reveals how regulatory changes impact Verizon's operations, highlighting the current scrutiny over DEI policies. He also addresses the strategic need for a three-year price lock amidst market fluctuations. With a focus on customer experience and future tech innovations, Sampath navigates the complex relationship between government regulations and telecommunications.
Verizon's investment in 5G infrastructure has significantly improved network efficiency and opened new business opportunities like fixed wireless access.
The competitive landscape in telecommunications is shifting, with major players like cable companies increasingly entering the mobile service market.
The CEO's skepticism toward net neutrality regulations highlights concerns regarding their impact on effective network management and service quality.
Deep dives
Verizon's 5G Investment and Network Capacity
Verizon's significant investment in 5G infrastructure has been pivotal in enhancing network capacity, which is crucial for managing the ever-increasing mobile data demand. The move from the 4G LTE to 5G not only increased the capabilities of the network but also reduced costs per bit transferred, allowing for more efficient data usage. Furthermore, the advancement of 5G has led to the establishment of new business ventures such as fixed wireless access, which provides broadband via wireless networks, effectively increasing competition in the broadband space. While some expectations for groundbreaking applications like autonomous vehicles or robot surgery remain unmet, the long-term benefits of 5G—such as improved capacity, lower service costs, and new telecommunications services—are expected to evolve gradually.
Telecom Industry Structure and Competition
The structure of the telecommunications industry in the U.S. involves both vertical and horizontal growth strategies among major players. As Verizon's consumer CEO explained, the telecom market is highly competitive, comprising three major wireless providers while also facing competition from cable companies that offer mobile services. The growth of cable providers like Comcast and Charter significantly alters the competitive landscape. Additionally, the prospect of new players like Dish Network and potential partnerships through technologies like OpenRAN are reshaping how competition manifests within the telecom sector.
Customer Experience and Decision-Making Framework
Prioritizing customer experience remains a focal point for Verizon, which includes actively engaging with customer feedback to inform business decisions. Tapping into customer insights has allowed the company to adopt measures like a three-year price lock to provide more financial predictability amid economic uncertainty. This adaptability also reflects a broader approach to decision-making characterized by a framework that distinguishes high-impact decisions from lower-stakes ones. By allocating more resources to long-term investments in network infrastructure and evolving services, Verizon aims to enhance customer satisfaction while also maintaining market competitiveness.
The Fallacy of Net Neutrality
The CEO expressed skepticism toward net neutrality regulations, arguing that the framework established could conflict with effective network management. His stance centers on the belief that prioritizing emergency services or controlling excessive bandwidth usage is essential for maintaining service quality. Additionally, he highlighted a perceived disconnect between consumer needs and the net neutrality framework, suggesting that the current regulatory discussions lack substantial relevance. The debate illustrates ongoing complexities in balancing network accessibility and operational efficiency within the ever-evolving telecommunications landscape.
Adapting to Regulatory Environments
Verizon navigates the challenges of regulatory changes within the telecommunications industry, balancing compliance with business needs and stakeholder expectations. The discussion around diversity initiatives and government oversight underscores the tension between corporate governance and regulatory influence. Adapting to current governmental requirements, including those set by the FCC, remains critical as these rules could shape future business operations. Ultimately, the need for effective stakeholder management appears central to Verizon's strategy, ensuring that they continue to prioritize their operational framework while responding to regulatory demands.
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
