Verizon CFO Vehemently Disagrees with Subsidiary Abandonment.
Recently During an address at a Deutsche Bank technology conference, Fran Shammo, Verizon CFO commented on that Verizon will be continuing with its conventional “subsidy/contract model’ due to the company feeling that their is a huge risk in abandoning the subsidies.
Shammo continued on with Verizon believes in that the current subsidy model is “an extremely good one” as it has worked perfectly so far in the wireless industry. The Verizon executive himself also added that he personally felt that abandoning the subsidy model will be “a mistake.”
Shammo’s statement goes along with the fact that Verizon’s own rivals, those being AT&T and T-Mobile, have claimed that the increasing number of customers have wished for pricing transparency and more cost effective ways to purchase mobile phones which can be easily exchanged from one carrier’s network on to another.
With AT&T and T-Mobile duking it out in the “unsubsidized mobile phone” arenas, Shammo has continued to say that one of the many reasons Verizon plan continue with subsidy models will be for customers who pay for their mobile devices on installment plants could be left having to pay a hefty sum of money to close down their accounts with one carrier and switching to another carrier.
Shammo drew attention to Verizon’s long-standing belief, “We’re not going to buy customers. You have to earn customers”; and said: “I do think that there are customers out there that want that installment sale. There is a lot of risk with the installment sale. We’re going to take a very conservative approach here.”