Verizon's CFO Says that "unlimited" is "just a word" and "doesn't mean anything."

[dgstorm]

Fran Shammo, Verizon's CFO shared an interesting perspective about Verizon's shared data plans while he was speaking at a Goldman Sachs investor conference yesterday. He basically touted the benefits of Verizon's Shared Data Plans, and didn't think unlimited plans represented any real value to most consumers. He believes that unlimited data will simply go by the way side. Here's a direct quote,

“So what customers are understanding and through our good sales routine is once you explain to a customer their usage on a monthly basis, unlimited is just a word, it doesn’t really mean anything and that people don’t really — I think a lot of consumers think they consume a lot more data than they really do. So that whole unlimited thing I think is going by the wayside and they see the benefit of going to the shared.”

[Editor's Note: There are a few of problems with this argument. First, if most consumers are not really using that much data, as he suggests, then there would be no reason for the carriers to switch to tiered data plans. Second, it doesn't matter if a person doesn't regularly use up that much data on a normal basis. The fact they might need to at some point and will have to pay exorbitant fees in order to do so, is simply a way for the carrier to price gouge the customer. In fact, it's possible that the reason some users come in lower than their data allowance is because they are afraid of overage charges. The idea of an unlimited data plan is that it offers the "peace of mind" option for customers. Lastly, Verizon's Shared Data Plans would likely be more palatable if they were a bit more cost effective and less aggressively tilted in the carriers favor. It just makes Verizon look greedy.]

Of course, that was just my editorial rant above. There are multiple perspectives to this, and we would like to hear yours.

Source: Verizon

 

[armeddroid]

Intersting.
I just spoke with a VZ rep about shared data and she said that VZ does great when it comes to the family, hence the shared data plan but does nothing for the individual user.
The CFO has no clue what he is talking about. Did he even think that there is a multitude of types of users? Certainly not.

They should have a shared data plan for one group of people and another for those who are individuals and dont need to share their data.
Rep told me they dont have that. And she agreed to my complaint for she too, is one of those who was forced into shared data.
Makes no sense to me to have a shared data plan for individual users.

 

[dgstorm]

^^. That is a another great argument!

 

[xsirxx]

Meanwhile Sprints stock is up 4.7% today with their "unlimited" plan selling out on the iPhone. I am an android user, but analysts like to measure sales on the iPhone.

 

[TheMuffStuff]

People need to start moving away from Verizon.. or this crap will just continue. Thank god my contract is up in a few months.

 

[sNuFfYStiGLiTZ]

Man....Come December I'm canceling my Verizon contract. I want to the Note 2 and it would be cheaper to pay the early termination fee of probably 300 dollars (My contract ends next September so it should be cheaper to cancel), sell my Galaxy Nexus on eBay to help with the fee, go to Sprint and sign up with an unlimited data contract with the Note 2 for 300 dollars, which is what the phone should cost. With my military discount, the bill should be cheaper than what I pay with Verizon. So either end up paying about 400 dollars to switch and get a new phone or I could just stick with Verizon, pay 800 dollars for the Note 2 and still get reamed....That's a tough choice wouldn't you say?

 

[James9109]

But not everybody wants terrible service, for me at least where I live the only phone companys that get good service without being a hassle is verizon and a central illinois company called IVC.

 

[TheMuffStuff]

Most people get service from any carrier anywhere, so thats not the real issue.

 

[SFGate]

Another example of Verizon telling it like it is. Too bad more people won't become aware of his statements and what they mean to the average customer.

 

[armeddroid]

The CFO is talking as if the consumer is choosing the plan that fits best for them. He doesn't realize that the consumers have NO choice other then shared data or buy full retail. But of course, he is the CFO. He isn't looking at it from a consumer POV. He thinks dollars and cents.
VZ need to be a lil more versatile when it comes to data plan options because right now IMO isn't realistic for indiviudals.

I was on Sprint for some time and must admit, my exp was pleasant until i moved to an area that didnt have coverage although Sprint claimed it did. When i showed them evidence that the area i was in wasnt connecting, they gave me a free signal booster unit for my home and if that didnt work, i can leave my contract at no cost in which i did and started my new membership with VZ. But I checked recently with Sprint and they said to come back, keep your # and keep your unlimited data. Just choose what phone you want.
That easy.

So...i do have the option to go back to Sprint and i am glad to see their LTE markets are rolling out but...its just not there yet.
I dont want to buy a phone full retail because seriously, its alot of money for a device.
I can get (4) Xboxes for that price. I should have ordered 2 iphone 5s and sold those for $1000 each cause iSheep will buy it at any cost to have it.
:huh:

 

[metalspring]

Man....Come December I'm canceling my Verizon contract. I want to the Note 2 and it would be cheaper to pay the early termination fee of probably 300 dollars (My contract ends next September so it should be cheaper to cancel), sell my Galaxy Nexus on eBay to help with the fee, go to Sprint and sign up with an unlimited data contract with the Note 2 for 300 dollars, which is what the phone should cost. With my military discount, the bill should be cheaper than what I pay with Verizon. So either end up paying about 400 dollars to switch and get a new phone or I could just stick with Verizon, pay 800 dollars for the Note 2 and still get reamed....That's a tough choice wouldn't you say?

there is really only one reason to stick with verizon, and its a pretty big one to a lot of people... 4G LTE...sure att has it some, and sprint is working on it but verizon has more 4g lte than all the rest combined by a long shot...sure get unlimited data with sprint but on 3g its practically pointless

another reason though is verizon generally has the best and biggest overall coverage, att is pretty good as well and sprint is still working on expanding coverage areas

 

[Yonahdad]

Man....Come December I'm canceling my Verizon contract. I want to the Note 2 and it would be cheaper to pay the early termination fee of probably 300 dollars (My contract ends next September so it should be cheaper to cancel), sell my Galaxy Nexus on eBay to help with the fee, go to Sprint and sign up with an unlimited data contract with the Note 2 for 300 dollars, which is what the phone should cost. With my military discount, the bill should be cheaper than what I pay with Verizon. So either end up paying about 400 dollars to switch and get a new phone or I could just stick with Verizon, pay 800 dollars for the Note 2 and still get reamed....That's a tough choice wouldn't you say?

Good luck w/getting all of your text messages or all of your calls w/Sprint..

 

[syndicate0017]

there is really only one reason to stick with verizon, and its a pretty big one to a lot of people... 4G LTE...sure att has it some, and sprint is working on it but verizon has more 4g lte than all the rest combined by a long shot...sure get unlimited data with sprint but on 3g its practically pointless

another reason though is verizon generally has the best and biggest overall coverage, att is pretty good as well and sprint is still working on expanding coverage areas

If you go to TMobile for the $30/month plan (what I'm planning on doing) and have HSPA+ in your area, you really won't notice a difference. It's still much faster than Verizon 3G.

 

[xxwabbit]

Hmm.. I'd bet money he has unlimited... Everything

 

[mountainbikermark]

Hmm.. I'd bet money he has unlimited... Everything

I'd bet money they pay for his contract and phone as well.

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