Verizon’s new plan: Consumers win, investors lose

Verizon has brought back its unlimited data plan. It’s great if you are a Verizon client. But this is terrible news for its investors.

Verizon (Vz)) The action dropped by almost 1.5% at the start of negotiation on Monday. It is now down approximately 10% so far this year, making it the worst interpreter of Dow in 2017.

Verizon’s move is a clear sign that the company must withdraw all stops to remain competitive with wireless rivals At & t (T)),, Sprint (S)) And Mobile (Tmus)).

“In the past few months, T-Mobile and Sprint have managed to take an additional part of Verizon because of their unlimited offers,” Morgan Stanley analysts wrote on Monday morning.

This may explain why T-Mobile and Sprint actions, which are now controlled by the Japanese technology conglomerate, are both increasing this year while Verizon is declining. T-Mobile and Sprint were also eternally linked as possible merger partners.

But the new telecommunications price war is not the only problem for Verizon.

AT&T has recently acquired the Directv Satellite Diffusion Supplier, a decision that makes my Bell more competitive against Verizon in the battle to control people’s salons. Verizon offers its own FIOS wide -band TV service.

Related: Verizon brings unlimited data plans

And AT&T also made a much more important bet on the content, with plans to buy the parent company of CNN Time Warner (Twx)). Verizon already has AOL and seeks to buy Yahoo’s basic assets to strengthen its own digital content offers.

But the Yahoo (Yhoo)) The agreement could collapse following revelations of violations of massive data in Yahoo in recent years.

Yahoo recently declared that he hoped that the agreement with Verizon would end in the second quarter of this year. He was originally supposed to be finalized in the first quarter.

However, in his latest winning press release, Verizon simply declared that he “continues to work with Yahoo to assess the impact of data violations” – not that he expected the agreement to end as soon as possible.

Verizon has a lot on his plate, which could make investors nervous. In addition to the Yahoo agreement, the company is also buying the XO Communications fiber optic network. And he sells his data center business to Equinix (Eqix)).

There have also been rumors in recent weeks that Verizon could even consider buying cables Charter communications (Chtr)).

This can be more than Verizon cannot manage in a realistic way at the moment. But nothing can be out of the table for Verizon given what extent the wireless world is competitive these days.

Anything that could give Verizon one step ahead of AT&T, Sprint and T-Mobile could be possible.

Related: Charter actions were published on the report of the possible takeover Verizon

However, it should be noted that AT&T shares are also lower this year, down approximately 5%. And Verizon and A&T have something in common that Sprint and T -Mobile are missing – Verizon and At & T pay gigantic dividends.

Companies with large dividend yields have not behaved as well since Donald Trump was elected. Investors bet on a considerable recovery set of him and the republican congress, which can be partially fed by debt.

This has caused an increase in bond yields – and it makes major dividends actions like Verizon much less attractive.

The federal reserve should also increase interest rates on several occasions this year. This could push even higher yields.

Verizon therefore faces many major challenges that could harm its stock this year.

This is why Verizon, nicknamed Big Red because of the crimson shade of his logo, could see his stock in the red in the predictable future.

CNNMONEY (New York) First publication on February 13, 2017: 11:27 am am he