I’m thrilled to sit down with Vladislav Zaimov, a seasoned telecommunications specialist whose deep expertise in enterprise telecom and risk management of vulnerable networks offers a unique perspective on industry shifts. With years of experience navigating the complexities of this fast-evolving field, Vladislav is the perfect person to shed light on Verizon’s recent leadership change and its broader implications. In our conversation, we explore the reasons behind the abrupt CEO transition, the strategic direction under new leadership, the challenges of subscriber losses, and the future growth narrative for one of America’s telecom giants.
What prompted Verizon’s Board of Directors to make the sudden decision to replace Hans Vestberg as CEO?
The decision to replace Hans Vestberg seems to stem from a combination of performance concerns and strategic impatience from the board. Verizon has been grappling with significant subscriber losses in its mobile phone business, which likely raised red flags. The board might have felt that a fresh perspective was needed to steer the company back toward growth. While Vestberg had a strong background from his time at Ericsson, the results under his tenure at Verizon didn’t fully align with expectations, especially in a competitive market where rivals are gaining ground. Timing-wise, announcing this just after the third quarter suggests the board had been mulling this over for a while, waiting for the right moment to act.
How do you think Dan Schulman’s background positions him to lead Verizon at this critical juncture?
Dan Schulman brings a wealth of relevant experience to the table. His time as CEO of PayPal gave him insight into digital transformation and customer-centric innovation, which are crucial for a telecom company looking to redefine its market position. Additionally, as a founding CEO of Virgin Mobile, he has hands-on experience in building a telecom brand from the ground up, understanding both the operational and competitive challenges. Having served on Verizon’s board since 2018, he’s not walking in blind—he’s had an insider’s view of the company’s struggles and opportunities. This mix of external innovation and internal familiarity makes him a compelling choice to drive change.
Schulman has talked about redefining Verizon’s trajectory. What do you believe he means by that, and where might he focus his efforts?
Redefining Verizon’s trajectory likely means shifting from a defensive stance to a proactive growth strategy. I think Schulman is looking at expanding market share across different segments, whether that’s consumer mobile, enterprise solutions, or emerging tech like 5G applications. There’s also a clear need to improve financial metrics while addressing subscriber churn. His focus might include enhancing customer experience to win back trust and investing in innovative services that differentiate Verizon from competitors. It’s about creating a narrative of growth and relevance in a crowded market.
Verizon has been facing subscriber losses in its mobile phone business. What’s driving this trend in your view?
Subscriber losses often come down to a mix of pricing pressures and competition. Verizon has been criticized for squeezing more revenue out of fewer customers, which isn’t sustainable and can push users to competitors offering better value or perks. T-Mobile, for instance, has been aggressive with promotions and network expansion, while AT&T pushes its fiber story. Market trends like the rise of budget carriers and increased consumer sensitivity to cost also play a role. Verizon’s challenge is to balance profitability with retaining and attracting customers in this hyper-competitive landscape.
There’s been commentary that Verizon lacks a clear growth story compared to its rivals. Do you agree, and if so, what can be done to change that?
I do agree to an extent—Verizon hasn’t articulated a compelling vision for growth in the way T-Mobile has with mobile or AT&T with fiber. Their recent focus on financial metrics over subscriber numbers has left them without a strong narrative. To change this, they need a balanced approach, prioritizing both customer acquisition and innovative offerings. Investing in areas like 5G-driven solutions for businesses or smart home tech could be a start. Schulman’s leadership could help by crafting a story around customer focus and long-term value, something that resonates with both investors and users.
Some analysts suggest Schulman’s role might be temporary, with a potential successor already in mind. What’s your take on the idea of a short-term leadership stint?
It’s not uncommon for a seasoned executive like Schulman to come in as a transitional leader, especially during turbulent times. His appointment could be seen as a way to implement tough, perhaps unpopular, changes—think restructuring or cost-cutting—before handing over to a longer-term leader like Sowmyanarayan Sampath, who’s already in a key role at Verizon. If this is the case, it’s a strategic move to stabilize the ship without burdening the next CEO with initial backlash. As for succession, large corporations like Verizon often have plans in place, even if they’re not public, to ensure continuity.
What is your forecast for Verizon’s future under this new leadership?
I’m cautiously optimistic about Verizon’s future with Schulman at the helm. His track record suggests he can bring a fresh, transformative approach, which is exactly what the company needs to reverse subscriber trends and rebuild its growth story. I expect a stronger push into digital and customer-focused innovations, possibly leveraging 5G in creative ways. However, the telecom space is brutally competitive, and success will hinge on execution—how quickly and effectively they can adapt. If Schulman can lay a solid foundation, even in a short stint, Verizon could emerge as a stronger player in the next few years.
