Verizon Watching T-Mobile's 'Uncarrier' Pricing Closely; CEO Would Consider It

Discussion in 'Android News' started by dgstorm, Apr 4, 2013.

  1. dgstorm

    dgstorm Editor in Chief Staff Member Premium Member

    Joined:
    Dec 30, 2010
    Messages:
    7,813
    Likes Received:
    1,749
    Trophy Points:
    258
    Location:
    Austin, TX
    Ratings:
    +1,784
    [​IMG]

    Verizon's CEO Lowell McAdam was recently in the public eye discussing Verizon's new “Powerful Answers” campaign, but towards the end had some intriguing things to say about T-Mobile's new "Uncarrier" pricing. When asked if it was something Verizon would ever adopt, he indirectly indicated it was something they were watching closely, and also made it clear it is something they would consider if customers wanted it. Here's a quote with more of the details,

    Some have argued that T-Mobile's new pricing structure is really just marketing speak, and the points are valid; however, there is no denying the mathematics which indicate a substantial savings compared to the way cell phone plans in the U.S. are currently handled. There is also no denying the appeal of being free from a two-year contract. Even if you are still paying for a device for an extended period of time, the idea that you can go to other carriers if you are unhappy with your current service is attractive.

    In the end, it's probably not too surprising that Verizon is watching this carefully to see how it pans out. After-all, if T-Mobile actually starts taking customers away from them, Verizon will need to shift gears quickly.

    Source: AndroidCommunity
     
  2. Sydman

    Sydman Premium Member Rescue Squad Premium Member

    Joined:
    Jul 18, 2010
    Messages:
    3,570
    Likes Received:
    311
    Trophy Points:
    198
    Location:
    Austin, Tx
    Ratings:
    +325
    We need to plan a mass exodus so Verizon will be forced to change, then we can all switch back if they come up with something better.
     
  3. dfcfu342

    dfcfu342 Member

    Joined:
    Feb 7, 2012
    Messages:
    184
    Likes Received:
    6
    Trophy Points:
    18
    Ratings:
    +6
    As much as I would love the Verizon network unlimited at $70 per month I just don't see that happening. I'm sure their version of uncarrier will save people about as much as their share everything plans saved them, nothing.
     
  4. jseah

    jseah Active Member

    Joined:
    Mar 24, 2011
    Messages:
    978
    Likes Received:
    25
    Trophy Points:
    28
    Ratings:
    +25
    Verizon will probably require you to give up unlimited data to get the "financing".
     
  5. akhenax

    akhenax Senior Member

    Joined:
    Jul 13, 2010
    Messages:
    1,180
    Likes Received:
    131
    Trophy Points:
    63
    Location:
    NY
    Ratings:
    +133
    I love how Verizon is making people "voluntarily" give up their unlimited data to upgrade to a new subsidized phone. Tell me, can you purchase a new Verizon Wireless ready phone from a source other than Verizon Wireless?
     
  6. kodiak799

    kodiak799 Silver Member

    Joined:
    Feb 20, 2010
    Messages:
    4,966
    Likes Received:
    284
    Trophy Points:
    198
    Ratings:
    +296
    That's the thing with subsidies - you continue to pay it whether you upgrade or not. That's why when they eliminated the subsidy for unlimited plans they effectively got $15/mo more from those people.
     
  7. 94lt1

    94lt1 DF Super Moderator Staff Member Premium Member

    Joined:
    Jan 16, 2012
    Messages:
    12,585
    Likes Received:
    1,314
    Trophy Points:
    558
    Location:
    SE TX
    Ratings:
    +1,405
    Current Phone Model:
    Droid Turbo
    Yes you can.. And if you do so, you can keep unlimited... Try sources like ebay, swappa, caigslist... But there are inherent risks associated with each of them... You can also buy phones for vzw from amazon and best buy.. If you buy at full price.. You keep your unlimited..
     
  8. Fuzzball

    Fuzzball Member

    Joined:
    Dec 30, 2009
    Messages:
    107
    Likes Received:
    2
    Trophy Points:
    18
    Ratings:
    +2
    I think all of the carriers should adopt something similar. There have been times I've upgraded in the past only because it costs me the same per month. I'd like to see a disconunt on my bill when the cost of the phone is not being covered. I do appreciate the more upfront pricing on phones as well. The on-contract plus ETF and off-contract pricing differences are annoying. I hope that this will further encourage the full price being reduced as time goes on.


    I doubt VZW will try and compete on price though. I'd be surprised if their pricing is lowered by $20/line/mo if they did adopt the same model. IMHO, T-Mobile is hungry for business and VZW is just looking for new ways to price gouge customers. It would take a large net loss of customers to get their attention and possibly change their piss-poor attitude towards their customers as a necessary evil. I'd be interested to know how they're getting feedback beyond attrition. From what I've researched, T-Mobile will serve at least 99% of my service needs and would save me a bundle of money. I've got a feeling it'll only get more competitive when it's easier to buy a phone and be able to move it from carrier to carrier without having to jump through a number of hoops and not worry about technology or band compatibility.

    So do the guys behind DF have a site dedicated to Android phones on T-Mobile? Sure there's XDA and others like it, but DF is less cluttered and has a great community.
     
    Last edited: Apr 4, 2013
  9. kodiak799

    kodiak799 Silver Member

    Joined:
    Feb 20, 2010
    Messages:
    4,966
    Likes Received:
    284
    Trophy Points:
    198
    Ratings:
    +296
    Not only does VZW have the lowest turn by at least 2-3X over next best, but they consistently are #1 on service. So why would they do anything with a very small margin of customers that mainly are upset because they can't afford the service?

    The uncarrier model probably DOES have some appeal, because phone subsidies represent a fairly high customer acquisition and retention cost. They don't make money on phones, so not paying subsidies has an appeal. And if they can keep even 1/3 of that money it's a win.

    Don't bank on prices really coming down. I was thinking about that with regard to cable, which is a pretty similar model in many respects and you are free to jump at most any time (barring contracts for discount). Broadband has come down as part of bundled service, but overall bundled prices have continued inching up. Granted, you are getting more content and service, but much of it is unneeded.
     
  10. MaelstromOC

    MaelstromOC New Member

    Joined:
    Jan 2, 2011
    Messages:
    25
    Likes Received:
    0
    Trophy Points:
    1
    Ratings:
    +0
    He even suggested that there would be some consideration if this was something that customers began asking for.

    Right... customers certainly don't think they overpay (but continue to do so) for a service that is over-charged significantly while the costs of maintaining the same service -- that was already overpriced to begin with -- continue to plummet.

    You can only get so much money from people before they can't give anymore. You can only shuffle the costs around to make it look like an attempt to save the consumer money while actually getting more out of them and providing less so much. It's ridiculous how much cell phones plans cost these days. $120+ for unlimited talk/text/data is just ridiculous. Voice doesn't even sound clear over a cell phone. Texts, well.. they're certainly something that used to be an absolutely crazy money maker (.10 to send a message consisting of a few BYTES of data?)

    And data, that sweet data that everyone loves so much.... "Here's a super fast 4G connection to use, but you can only use 2GB a month or we'll charge you extra!" "Why do we charge so much for our data? Well, that's because bandwidth is finite!"

    If bandwidth was an issue, they'd sell SLOWER speeds to people to prevent network congestion, not permit people to download at a ridiculous rate, on a mobile device, as long as they don't go over the measly cap they give you.

    Sorry for ranting here, but I've had enough of cellular companies and their bull.
     
  11. Crankintopwater69

    Crankintopwater69 Senior Member

    Joined:
    Mar 1, 2011
    Messages:
    1,878
    Likes Received:
    87
    Trophy Points:
    78
    Location:
    Greensboro,NC
    Ratings:
    +90
    I stopped reading it when he said "if customers wanted it.":blink:
     
  12. dgstorm

    dgstorm Editor in Chief Staff Member Premium Member

    Joined:
    Dec 30, 2010
    Messages:
    7,813
    Likes Received:
    1,749
    Trophy Points:
    258
    Location:
    Austin, TX
    Ratings:
    +1,784
    Fuzzball, to answer your question, we have a site that focuses on other Android phones beyond just Verizon. It's not specifically a T-Mobile site, but we include news about T-Mo, Sprint, AT&T and sometimes even Verizon over there. Here's the link: Android Forum
     
  13. Crankintopwater69

    Crankintopwater69 Senior Member

    Joined:
    Mar 1, 2011
    Messages:
    1,878
    Likes Received:
    87
    Trophy Points:
    78
    Location:
    Greensboro,NC
    Ratings:
    +90
    I just ordered my sim card.

    Sent from my S3 rocking 4.1.2
     
  14. drunkclever

    drunkclever Member

    Joined:
    Aug 2, 2010
    Messages:
    232
    Likes Received:
    2
    Trophy Points:
    18
    Ratings:
    +3
    All good for used phones. New... i think its at the store or through there website right?

    Sent from my DROID RAZR using Tapatalk 2
     
  15. kodiak799

    kodiak799 Silver Member

    Joined:
    Feb 20, 2010
    Messages:
    4,966
    Likes Received:
    284
    Trophy Points:
    198
    Ratings:
    +296
    Not a bad route to go if you don't mind being 6 months behind the latest (figure sell your old phone for maybe $150...get a 6-month old one for $450?). Not sure how the prices would actually play out, but I'd guess your net would be about the same outlay as buying a subsidized phone. Then if you could just get VZW to waive that pesky embedded subsidy in their pricing...

    The tech is such now that I don't see a problem keeping a phone for 3, even 4 years (assuming you can replace the battery). At the same time, the advances are pretty marginal such that a 6-month old phone can certainly hold its own.