Verizon: T-Mobile Won't Cause us to 'Over-React' On Pricing
Verizon's recently quarterly earnings
suggests that the company is definitely feeling T-Mobile's price competition, with a 20% postpaid subscriber growth rate year over year and a slowdown in quarterly adds that went beyond what most analysts expected. Still, most of Verizon's price responses to T-Mobile have been modest at best, and Verizon CFO Fran Shammo states that you shouldn't expect the company to seriously respond to T-Mobile pricing anytime soon
"We will react rationally and where we think we need to react," Shammo said at the Jefferies Technology, Media and Telecom Conference. "The key to any competitive move is not to overreact to a competitor. "I guess you could accuse us of not moving fast enough," he said, but he added that Verizon needs to take measured moves "because once you make the move you can't go back."
Verizon's large enough, and dominates so much of the retail and special access market (not to mention their spectrum holdings) that the company knows T-Mobile's disruption can only go so far
. Still, Verizon's long-standing belief that their network quality and coverage is simply so superior the company doesn't have to compete on price -- is pretty clearly going to be tested.
Re: Verizon coverage is great, pricing is the same... Well TMO is losing money VZ not. So there is a cost to that. If you compare 4 phones, family line there is probably no more than $5-$10 difference between these guys. I can't say that for certain, because they all use their spin but in the end of the day it's all really the same. Sure if you look @ the service price of TMO it looks lower, but then you have to buy a phone. Add $20-$30 per line in subsidized cost and see how they line up.
I won't even get into the coverage, because that isn't even close. TMO is like swiss cheese in the NE, Sprint is slightly better. Only AT&T and Verizon have the coverage.
I had TMO and TMO MVNO. Just as long as you stayed in metro borders its aok. Once you are out, forget it. Dialup.
AT&T more than anyone else is making strides, Verizon is definitely the last mover on this because they are #1. They know they can hold out.. With people locked up in family plans they know it will take years to affect major shifts.
In any case I have spoken to dozens of friends out of or near ending contracts and there is a "fear" of switching carriers. It's some irrational thing, but these people are the rule not the exception. Even if I explain they can save thousands and demonstrate it, it just doesn't sink in. People are loath to change something that is working.
| |said by elefante72:Do you mean all the SIM unlocked (by FCC decree) global ready handsets Verizon offers? Because their phones are more ready to go than a carrier locked AT&T or T-MO variant...
The most irritating thing about Verizon is their iron fist approach to controlling handsets. Even today no Verizon MVNO has access to LTE networks, and their are just skeleton phones that are still around that are 3G. Outside of the iphones, verizon handsets are close proprietary POS. I'll never go back to a Verizon droid.
No I simply slam the UICC (SIM) of the day in my open androids and move on. Sure I may be a minority, but iphones aren't the only game in town.
(notwithstanding the unlocked global ready phones of the past I've collected, still have my Moto Z6c in use with a family member, and an HTC Trophy unlocked I keep around for emergencies)
(also... "slam the UICC (SIM) of the day" ?? C'mon, if you want to slam the knowledge around, realize that CDMA handsets were equally capable of using UICC cards, that 'SIM' cards were only for 2G phones (USIM for UMTS, CSIM for CDMA), and of course that things have changed on Verizon over the last 5 years.)
MVNO's are nice and all, but some people need reliability: »en.wikipedia.org/wiki/List_of_Un ··· perators
No to all of the above Three companies that I wouldnt have in my house or life . AT&T , Verizon, and Comcast .