(Reuters) - Verizon warned on Tuesday that first-quarter subscriber growth would likely be "soft" as rival carriers attract customers with promotions, sending its shares down 5.3% in premarket trading.

The U.S. wireless giant pulled back on customer incentives after the promotion-heavy December quarter, but rivals did not, intensifying competition, Chief Revenue Officer Frank Boulben said at Deutsche Bank's Media, Internet & Telecom Conference.

American telecom firms have leaned on incentives in a fierce battle for customers as growth slows in a saturated market. That has boosted subscriber growth but raised worries about profits.

Shares of Verizon rival AT&T ( T ) were down 4.5% as it also said it saw elevated subscriber churn in January, while T-Mobile US ( TMUS ) was down 2.1%.

Verizon has also seen "a slow start" to phone upgrades in the first quarter, a sign that customers were continuing to hold back on purchases amid growing worries about the U.S. economy.

Still, the company expects to add more monthly-bill paying wireless subscribers in 2025 than the around 900,000 subscribers it added last year, as it benefits from its customizable myPlan.

The comments follow a strong fourth quarter for U.S. telecom firms, where plans bundling 5G services with high-speed fiber data, as well as streaming services, helped attract customers.

Verizon also said it did not expect a big hit due to the tightening in U.S. immigration.

"We expect very limited impact on the postpaid side where customers have got to provide some form of identification to get onto a contract. So if there is any impact, we will see it towards the low end of the prepaid market," Boulben said.

Since taking office in January, President Donald Trump has kicked off a sweeping immigration crackdown, tasking the U.S. military with aiding border security and issuing a broad ban on asylum.