This site is part of the Global Exhibitions Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Informa
Verizon CFO: Phone Subsidy Model Is 'Extremely Good'
March 11, 2014 - News
Comments

**Editor's Note: Which is America's top wireless network? Click here to see what we discovered.**

Phone subsidies remain the safe option for Verizon Wireless.

That's the takeaway from Verizon CFO Fran Shammo's presentation this week at a Deutsche Bank conference.

In addition to subsidies, Verizon offers subscribers the ability to pay for their pricey devices on monthly installment plans, but that option is available only to "very high credit-worthy customers," Shammo said, according to CNET.

That's because installment plans are risky for carriers. For example, subscribers can give back a phone instead of paying it off, and the carrier doesn't even get the benefit of the early termination fee.

Given the risks, Verizon sees subsidies as best.

"We believe that the subsidy model is an extremely good model," Shammo said, according to CNET. "It has done wonders for us in this industry. So I think to abandon that I think is a mistake."

Wireless rivals AT&T and T-Mobile offer the much-publicized "Next" and "Jump" programs, respectively, which let subscribers upgrade almost whenever they want. Verizon's answer to those initiatives is "Edge."

Comments
comments powered by Disqus
Related News
News
News of Good’s IPO filing comes after the announcement that it lost $118 million
Craig Galbraith
News
Craig Galbraith
News
The mobility security company aims to help VARs, ISVs and other channel players boost profitability
Kelly Teal