Lowell McAdam, the CEO of Verizon has said that the company isn’t above dropping contracts. As the industry has shown, different providers are testing different strategies from free phones with a two-year plan to dropping contracts. Just anything to move phones en masse since the some of the higher end devices’ prices aren’t exactly friendly. McAdam mentioned that if consumers requested them to drop contracts, Verizon would do so to stay competitive.
It would be interesting to see if Verizon would do it. How many times have we heard companies say “We’ll do X if customers demand it” only for customers to demand it and nothing happen and a spokesman or company leader to give a reason why the company won’t do it or to mention it was a vocal minority that wanted the change. The possibility is only a two way here: either they do it or either they don’t, from there it could branch off into any direction. It could turn up great for Verizon resulting in more devices moved, could stay the same, in a freak incident devices might not move at all, and so on.
Verizon and other carriers are watching to see how everything turns out for T-Mobile which decided to drop contracts and subsides recently. If T-Mobile’s financial fortunes turn out to be a win expect other carriers to jump on that bandwagon in a bid to move merchandise. T-Mobile’s Un-carrier approach sees them killing the binding annual contracts, allowing for a one rate plan which includes unlimited text, web, and talk, and lets the customer update whenever they wish. It also includes their lineup of 4G LTE Network devices.
So what does this particular plan mean for consumers? It allows for them to set up their plan how they wish. If they want one phone only they only have to pay $50 a month or if they want another, drop another $30, and $10 for each after that. They can also purchase devices as they wish. In short it’s a friendlier towards customers as was the plan with this new approach.
All of this points to T-Mobile being able to move more than enough devices and plans. It seems like this could end up working out very well for T-Mobile and everyone else hoping onboard. There’s really no reason they shouldn’t try this method out for a moment anyway.