Verizon CEO says he's open to dropping contracts

Discussion in 'iPhone' started by EbookReader, Apr 3, 2013.

  1. EbookReader, Apr 3, 2013
    Last edited: Apr 3, 2013

    EbookReader macrumors 65816

    Joined:
    Apr 3, 2012
    #1
    http://news.cnet.com/8301-1035_3-57577842-94/verizon-ceo-says-hes-open-to-dropping-contracts/
    CEO Lowell McAdams says the company could easily shift to the model if consumers begin demanding it.

    Verizon
    AT&T


    I guess this all will depend on how successful T-Mobile will be.
    Success = other carriers adopting this method of paying the phone and service separately
    Not Successful = status quo

    [​IMG]

    Line 1: $50 -------------(unlimited talk, unlimited text, 500MB of 4G speed)
    Line 2: +$30 --------------(unlimited talk, unlimited text, 500MB of 4G speed)
    Line 3: +$10---------------(unlimited talk, unlimited text, 500MB of 4G speed)
    Line 4: +$10---------------(unlimited talk, unlimited text, 500MB of 4G speed)
    Line 5: + $10--------------(unlimited talk, unlimited text, 500MB of 4G speed)



    $10 upgrade for extra 2GB at 4G speed. $20 upgrade for unlimited at 4G speed.
     
  2. nebo1ss macrumors 68030

    Joined:
    Jun 2, 2010
    #3
    It does not have to be one or the other. It would be good to have a choice for those that want to maintain contracts. The important issue is that an alternative for those who have their own phone should be available from all carriers. This should take into consideration that there is no subsidy and the benefit reflected in the monthly rate.
     
  3. designs216 macrumors 65816

    designs216

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    #4
    Lipservice. These behemoths like their customer-no-service business model and captive subscribers. What would become of their mammoth profits and gigantic executive bonuses if unhappy customers could just leave?
     
  4. tardman91 macrumors 6502a

    tardman91

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    Location:
    Tampa Area, FL
    #5
    I want European plans. You can get unlimited talk, text, and data for like $40 a month in some places over there. I'll gladly dish out $600 for a phone with plans like that. Hell, I would probably even sign a contract.
     
  5. XboxMySocks macrumors 68020

    XboxMySocks

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    Oct 25, 2009
    #6
    Hah. Funny. This is what consumers have been demanding for years.
     
  6. BHP41 macrumors 6502a

    BHP41

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    United States of America
  7. Menel macrumors 603

    Menel

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    ATL
    #8
    It'll be awhile before I can switch and contribute to TMobile's success :(
     
  8. Arran macrumors 68040

    Arran

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    Location:
    Atlanta, USA
    #9
    Why?
     
  9. lordofthereef macrumors G4

    lordofthereef

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    Boston, MA
    #10
    I can see them dropping contracts, but the savings won't be that much better, I wouldn't think. As it stands, they don't even offer any savings on phone OFF of contract.

    Personally, it is not so much the contract that is bothersome, it is the monthly rates even after that contract has been fulfilled. The ETF is already set up to pay off the retail price of your phone if you decide to leave the company early. I would have to see, I guess, but I am not holding my breath. I certainly don't see verizon offering unlimited voice/texts and a couple gigs of data for $50 like TMO.
     
  10. Premium1 macrumors 6502a

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    Jan 26, 2013
    #11
    If it meant lower monthly plans I would be all for it, but with verizon and att I'm sure they wouldn't do too much.

    ----------

    Even if they would make it like $70-75 that is still cheaper than what they currently offer( verizon that is)
     
  11. lordofthereef macrumors G4

    lordofthereef

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    Boston, MA
    #12
    Right. What I am saying is, I don't think they will is all. :)

    What I CN imagine is seeing a plan that is $5-10 cheaper per month, but once you get a phone with it, you end up paying more over the two years time than you would have with old contract plans. Let's be honest with ourselves. That is how Verizon has always rolled.
     
  12. Premium1 macrumors 6502a

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    Jan 26, 2013
    #13
    Oh you know it ha, if they do this it will only be so verizon makes more money
     
  13. Wicked1 macrumors 68040

    Wicked1

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    Location:
    New Jersey
    #14
    I would prefer to have a lower monthly, but if your only talking about saving a few dollars over what I have with AT&T now, then I am not down for it.

    They would have to offer me the 4G of shared data for my 3 Lines for like $100.00 or less per month for it to be worth losing the sub on the phones. I would then just keep my phone for 2-3 years or however long I can, as apposed to getting a new one every year.
     
  14. thehustleman macrumors 65816

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    Jan 3, 2013
    #15
    Actually the ETF may or may not be enough and that's if they pay it.

    Buy a phone for 200, you decide you don't want it a month or 2 later and pay 350. You got the phone got 550 instead of the 650 it costed
     
  15. ucfgrad93 macrumors P6

    ucfgrad93

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    Colorado
    #16
    It will be pretty interesting to see how things work out for T-Mobile with these new plans.
     
  16. Ta0jin macrumors 6502

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    Nov 9, 2011
    #17
    I would be down with T-Mobile if it was more than 500mb a month for $50, maybe 2 or 3gb sure. If I add the extra $20 for an extra 2gb it really doesn't save me much over what I pay for AT&T monthly currently and I have a little over 3gb per month. Plus I didn't have to pay for my phone full retail. Dropping contracts and paying full retail for a phone is cool and all IF it saves me alot more monthly!
     
  17. osofast240sx macrumors 68030

    osofast240sx

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    Mar 25, 2011
    #18
    It's $50 for 500mb
    $60 for 2gb
    $70 for unlimited
     
  18. EbookReader thread starter macrumors 65816

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    Apr 3, 2012
    #19
    correction:

    $50 for 500MB at 4G, unlimited 2G after the threshold
    $60 for 2.5 GB at 4G, unlimited 2G after the threshold
    $70 for unlimited 4G
     
  19. osofast240sx macrumors 68030

    osofast240sx

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    Mar 25, 2011
    #20
    what happen to 3G?
     
  20. lordofthereef macrumors G4

    lordofthereef

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    #21
    Though I haven't seen numbers, chances are Verizon, and all carriers really, are getting these phones for less than retail. Look at Tmobile. They are offering you $20/mo to pay off your phone. That comes out to $580 for the phone instead of $650.

    ----------

    I think it is unlimited 3G after that. In any case, what really matters is what speeds you get at each soft cap, and then what speeds you get after you've hit the soft cap. They can call it 3G, 4G, ABCDE, whatever they want, as long as browsing the net, at a minimum, is viable.
     
  21. thehustleman macrumors 65816

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    #22
    You didn't pay full retail you paid even more hidden in the contract...
     
  22. takeshi74 macrumors 601

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    Feb 9, 2011
    #23
    The assumption, if you read and consider the context of the OP, is that the elimination of contracts and lowered service rates would be mutually inclusive.

    I don't think VZW will either but I wouldn't mind being proven wrong. The big 2 rarely seem to be influenced by TMO and Sprint. They do, however, seem to follow each other.
     
  23. Fissure macrumors 6502

    Joined:
    Jul 28, 2010
    #24
    All those fools care about is "will we make less $$$".

    Don't think for a minute that AT&T/Verizon will end contracts if it means it'll lower the average profit margins their making from their "forever subsidized" plan pricing models.

    When T-Mobile's network improves and becomes closer to parity with the other carriers (4G & LTE coverage) and IF T-Mobile starts stealing a noticeable chunk of customers THEN and only THEN do I see AT&T and Verizon going the contract-less route with lower plan prices. Sprint on the other hand may follow suit faster as they a very distant #3 carrier in the US. AT&T and Verizon dominate in the US.

    I applaud T-Mobile for what they are doing but make no mistake they really had no choice. They had to be cheaper and they chose to do it with contract-less plans. AT&T and Verizon definitely are not happy about it but right now due to T-Mobile's limited 4G and LTE coverage they don't feel as though T-Mobile is much of a threat. Hopefully that changes sooner rather then later.

    It's a breath of fresh air to see "actual" competition in the wireless industry. I have always thought through all these years there has been a gentlemanly agreement between all the wireless carriers to compete "softly" as all their plans were eerily similarly high-priced (kinda like Cable-TV/Dish/Direct-TV/U-Verse).
    I hope T-Mobile does well and I'd seriously consider breaking my contract and switching to them if their 4G coverage was available in my area. Perhaps in another 6 months.
     
  24. taedouni macrumors 65816

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    Jun 7, 2011
    Location:
    California
    #25
    Oh they'll end contracts alright.... Same monthly price , just no commitment and no subsidized phone.
     

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