Verizon standing firm against offering unlimited data plans

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As business cycles go, it seems we are coming around for our second lap with wireless carriers offering unlimited data in an effort to entice customers to choose their service. During an investor conference on Thursday, Verizon’s chief financial officer Fran Shammo confirmed that in typical fashion for the company, Verizon would not jump on the bandwagon and offer their own unlimited plans.

According to Shammo, “people don’t need unlimited plans” and from the business side, “you cannot make money on an unlimited video world.” The latter comment is a reflection of Verizon’s belief that unlimited video will encourage users to stream video and overload the network and it is a bit of a dig at competitors. Both T-Mobile and Sprint combat that by throttling video resolution on their unlimited plans while AT&T, which recently got into the unlimited data market, requires bundling with their DirecTV service.

Shammo pointed out that another weak spot with competitors’ unlimited plans are all of the restrictions, like not having unlimited tethering of other devices available. At the end of the day, Shammo thinks Verizon’s way of doing business is “more customer-friendly” because customers do not need to worry about a bunch of asterisks and limitations.

Although Verizon is holding out, no doubt from a position of power given their market leading position, Shammo did not close the door completely. He acknowledged the company will continue to “look at our competitors closely. We’ll respond when needed.”

During the meeting, Shammo also touched briefly on iPhone sales. Shammo said the carrier has seen a positive bump, but thinks it is primarily due to the free iPhone offer for customers who trade in an older iPhone. Otherwise, sales of the new iPhone models are expected to be similar to last year.

source: CNET


About the Author: Jeff Causey

Raised in North Carolina, Jeff Causey is a licensed CPA in North Carolina. Jeff's past Android devices include an HTC EVO, a Samsung Note II, and an LG G3, and a Motorola Moto X Pure Edition along with a Samsung Galaxy Tablet 10.1. He currently uses a Samsung Galaxy S8 and (very rarely) a Nexus 7 (2013). He is also using a Verizon-branded Motorola Moto Z Play Droid supplied by his job. Jeff used to have a pair of Google Glass and a Moto 360 Sport in his stable of gadgets. Unfortunately, his wife and kids have all drunk the Apple Kool-Aid and have i-devices. Life at home often includes demonstrations of the superiority of his Android based devices. In his free time, Jeff is active in his church, a local MINI Cooper car club, and his daughter's soccer club. Jeff is married, has three kids, and a golden retriever.