Verizon warned Monday that recent promotions in its wireless business would hurt its profit for the fourth quarter. The warning caused other U.S. telecom stocks to fall on concerns of a price war in the industry, according to Reuters.
Sprint recently announced a promotion offering to halve the monthly payments of users switching to the carrier from Verizon and AT&T (T) . Rival T-Mobile (TMUS) has also cut prices as part of its "Uncarrier" plans.
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"We have been wary of the carriers in general because of rising competition that we believe will pressure average revenue per user (ARPU), margins and returns over time," New Street Research analyst Jonathan Chaplin told Reuters.