According to Verizon it’s a mistake to abandon the subsidized handset model

March 11, 2014

We’ve seen a number of steps towards moving away from the subsidized phone model from many of the big phone providers in the past couple months. Except Verizon. It seems that Verizon is a little more cautious than their competitors when it comes to making those steps, and instead is focusing on promoting its traditional subsidized plan.

Verizon CFO Fred Shammo today spoke at the Deutsche Bank media conference, giving some insight as to why the company isn’t taking the same steps as other companies. During the conference he mentioned that Verizon believes “that the subsidy model is an extremely good model. It has done wonders for us in this industry. So I think to abandon that is a mistake.” He also said that the companies “Edge” and “More Everything” plans are available due to demand.

Shammo also mentioned that Verizon would be taking a conservative approach when trying new plans. Because of the fact that the Edge plan is still in its early days, he wants to wait and see how things go for customers after 6-12 months.

Essentially Verizon doesn’t want to move away from a model that is turning in a big profit for them, at least until they can figure out what the risks associated with the moves might be.

Source: Verizon

Via: Engadget

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