Verizon's wireless business is stabilizing, but its fixed wireless internet service is losing ground to rivals as more customers opt for fiber and competition from satellite providers intensifies
Verizon is showing signs of recovery in its core wireless business, but the company is now contending with a slowdown in one of its most promising growth areas: fixed wireless access (FWA) internet. While the broader market for home broadband continues to expand, Verizon's FWA subscriber growth has decelerated sharply, raising questions about its ability to keep pace with competitors and shifting consumer preferences.
In the second quarter of 2026, Verizon added 184,000 postpaid phone customers, reversing a multi-year trend of subscriber losses. The company's wireless retail postpaid phone churn rate dropped to 0.92%, an improvement from 0.97% a year earlier, according to its latest earnings report. This progress follows a strategic pivot away from price hikes that offered little added value, as well as the introduction of new, lower-priced plans and a loyalty rewards program aimed at retaining customers.
Fixed Wireless Growth Stalls
Despite these gains, Verizon's FWA internet service is losing momentum. The company added just 193,000 new FWA customers in the second quarter, a 30.6% decline from the same period in 2025. FWA, often marketed as 5G home internet, has been popular for its affordability and accessibility in rural and underserved areas, but Verizon's recent results suggest that demand is cooling.
Competitors are pulling ahead. AT&T reported 279,000 new FWA customers for the quarter, while research firm Recon Analytics estimates T-Mobile added approximately 465,000 FWA subscribers. T-Mobile's total FWA base is expected to reach 12 million by the end of 2028, compared to Verizon's 5.7 million at the close of 2025. The national carriers have collectively driven FWA to capture 14% of the U.S. broadband market, according to industry analysts.
Fiber Expansion Shifts Customer Demand
Verizon's CEO Dan Schulman attributes the FWA slowdown in part to the company's aggressive fiber internet rollout. In the second quarter, Verizon added 155,000 new fiber customers, following its $20 billion acquisition of Frontier Communications in January. This deal expanded Verizon's fiber footprint to 31 states and Washington, D.C., with about 30 million homes now able to access its fiber network. Schulman expects fiber passings to reach at least 32 million by year-end.
Schulman has emphasized that customers are increasingly choosing fiber where it's available, while FWA remains the default in areas without fiber coverage. Verizon's new Verizon One plan, launched in June, bundles mobile and home internet (including Fios, 5G Home Plus, or Verizon Home Internet Lite Extra) for $70 per month. Early data shows that more than half of new Verizon One subscribers are opting for higher-speed tiers, boosting average revenue per account.
Verizon is betting that its converged offerings-combining wireless and home internet-will help offset the FWA slowdown by increasing customer loyalty and revenue. The company is also focused on selling additional lines and perks to maximize customer lifetime value.
Satellite Competition and Market Pressures
Rising competition from satellite internet providers, especially SpaceX's Starlink, is another factor shaping the broadband landscape. Starlink has attracted over 9 million customers globally since its 2019 launch and is upgrading its network with new satellites to improve speed and capacity. While Verizon's leadership argues that satellite providers struggle to match the speed and efficiency of terrestrial broadband, especially in suburban and urban areas, recent consumer satisfaction surveys show Starlink leading the pack with an 89% satisfaction score, compared to Verizon's 79%.
Industry analysts expect Starlink to remain most competitive in low-density rural markets, while fiber and cable continue to dominate in urban and suburban areas. Even with technological upgrades, satellite broadband is likely to face inherent limitations in speed and capacity compared to fixed wireless and fiber, according to a recent study cited by Light Reading.
Competitive Landscape and Financial Stakes
Verizon's FWA slowdown comes as the U.S. broadband market becomes increasingly fragmented. National carriers are racing to expand both wireless and fiber offerings, while satellite providers target underserved regions. For Verizon, the challenge is to maintain growth in a market where consumer preferences are shifting and rivals are investing heavily in network upgrades.
According to the company's second-quarter 2026 earnings, Verizon's total broadband additions-including both FWA and fiber-were outpaced by AT&T and T-Mobile. The company's strategy now hinges on leveraging its expanded fiber network and converged service bundles to retain and grow its customer base. As the competitive environment intensifies, Verizon's ability to adapt will be closely watched by investors and industry observers.
For context, the U.S. broadband market has seen rapid changes in recent years. According to the Federal Communications Commission, as of late 2025, more than 110 million U.S. households had access to high-speed internet, with FWA accounting for a growing share. The average monthly cost for broadband service in the U.S. was about $61 in 2025, but prices and speeds vary widely by provider and region.
Verizon's experience highlights how shifts in technology, consumer demand, and competitive dynamics can quickly alter the outlook for even the largest players. As seen in other sectors, such as the semiconductor industry's response to AI-driven demand, companies must continually adapt their strategies to stay ahead-a point underscored in coverage of market shifts like Michael Burry's recent moves in the chip sector.
Fixed wireless access (FWA) is a broadband technology that delivers internet service over cellular networks, typically using 4G LTE or 5G signals. Unlike traditional wired connections, FWA can be deployed quickly and cost-effectively, making it attractive for rural and underserved areas where laying fiber or cable is expensive or impractical. However, FWA speeds and reliability can vary depending on network congestion, signal strength, and local infrastructure. As more providers enter the market and consumers gain additional options, the balance between price, speed, and availability will continue to shape the future of home internet in the U.S.
