Editor in Chief
- Dec 30, 2010
- Reaction score
- Austin, TX
Apparently, Verizon doesn't care if they lose customers to cheaper competitors and their indirect message to them is: "Don't let the door hit you on the way out!" At least, that's what is inferred in the latest comment from Francis Shammo, Verizon’s chief financial officer. During a recent earnings call, and in reference to a report that Verizon lost 138,000 postpaid customers in the last three months, Shammo commented,
“If the customer who is just price-sensitive and does not care about the quality of the network—or is sufficient with just paying a lower price—that’s probably the customer we’re not going to be able to keep."
An argument can easily be made that Shammo has a point. After all, companies like Apple have built their business on catering to a higher-end market with a premium product. Verizon's network has always been the best (although as the others continue to expand and upgrade, that difference is eroding). The old adage, "You get what you pay for," comes to mind.
Do you think Verizon's products and services are good enough that they can effectively ignore the loss of customers by charging more, or is this just the typical arrogant attitude we have come to see from them on many issues? Does Verizon really offer that much better value that they can justify ignoring the competition?
Source: Yahoo! (via Bloomberg)