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

[dgstorm]

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,

McAdam was recently on stage to raise awareness for their “Powerful Answers” campaign and upon exiting, McAdam was asked about T-Mobile and if this was something Verizon Wireless would consider.

McAdam had said it would be “pretty easy” to change up their current model and drop the contracts. He even suggested that there would be some consideration if this was something that customers began asking for. While things clearly aren’t going to be changing for Verizon Wireless users just yet, McAdam did go on to mention that he is happy when he sees something different begin tried.

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

 

[Sydman]

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.

 

[dfcfu342]

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.

 

[jseah]

Verizon will probably require you to give up unlimited data to get the "financing".

 

[akhenax]

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?

 

[kodiak799]

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.

 

[94lt1]

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?

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..

 

[Fuzzball]

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.

 

[kodiak799]

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.

 

[MaelstromOC]

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.

 

[Crankintopwater69]

I stopped reading it when he said "if customers wanted it.":blink:

 

[dgstorm]

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.

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

 

[Crankintopwater69]

I just ordered my sim card.

Sent from my S3 rocking 4.1.2

 

[drunkclever]

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..

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

 

[kodiak799]

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

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.