Telecom stocks fall following Verizon’s Deutsche Bank Conference comments

Investing.com -- Verizon shares declined more than 7% Tuesday as Chief Revenue Officer Frank Boulben spoke at Deutsche Bank’s conference, stating that the first quarter has seen an "elevated level of competitive intensity." 

The comments have also resulted in other telecom names declining, with AT&T (NYSE:T) down 3.5% and T-Mobile falling 3.8% on Tuesday.

Bloomberg reported that Boulben noted that Verizon (NYSE:VZ) adjusts promotions based on demand trends. 

"When we see less demand, we pull out of promotion. When we see demand picking up, like in March, we come back with a new promotion," he said. "So, it’s been a challenging quarter from a competitive intensity standpoint."

Verizon expects postpaid phone gross additions for Q1 to be flat to slightly down and sees a "tough" year-over-year comparison, with growth ads likely to be "soft." 

The company also faces "headwind pressure on churn early in the year."

On device upgrades, Boulben reportedly said Verizon still expects a middle single-digit growth rate year-on-year, but with a slow start in Q1 and a ramp-up later. 

Bloomberg added that he also highlighted a shift in consumer behavior as customers now keep their devices for over 41 months on average, compared to 24 months previously.

As for cable industry trends, Boulben noted that growth from net ad standpoint is decelerating.