Verizon has been accused of being a “smaller company than competitors”, with only 1.8% of European customers subscribing to its broadband service.
In its latest quarterly report, Verizon said that it has “a small percentage of European broadband customers” but it does not have a competitive advantage because its broadband has to compete with “a large number of other broadband providers, who also offer similar offerings”.
“However, Verizon has significantly fewer European customers than competitors,” Verizon wrote.
“For example, the majority of our European broadband customer base are from European nations, where the majority (62%) of our total broadband customer acquisition is conducted.”
The carrier is also facing growing competition from cable TV operators like Sling TV and Dish Network, which offer more-premium streaming video options, while other ISPs like Vodafones, Sky and TalkTalk offer a range of services including internet-only and fixed-line broadband.
In its quarterly report to shareholders, Verizon reported that its net revenue from European customers dropped by 4.6% to $5.7bn in the second quarter, down from $7.3bn a year earlier.
The company blamed “a reduction in our European revenues” for its lower profit per user.
Verizon said it expects “substantial” growth in European customers over the next three years.
It also said it would be reducing its “subscription” fees in the next two years.
The carrier has also been criticised for offering limited services and being stingy in its broadband plans.
In the third quarter, Verizon reduced its broadband packages from the $50-a-month to $30 a month plans.
The carrier also increased its prices for “core” plans, which cover only the basic internet and TV packages, from $40 to $100 a month.
Verizon is currently struggling with growing competition, with cable operators like Comcast and Charter in particular aggressively pursuing its lucrative wireless business.
However, the company is not the only provider struggling to compete against cable TV companies.
The UK-based company has been criticised by regulators in other countries for its high prices for its broadband services.
Cable TV companies are also increasingly investing in video services, and recently launched a service dubbed “Verizon Video”.