Editor in Chief
Verizon's CFO Says that "unlimited" is "just a word" and "doesn't mean anything."
Fran Shammo, Verizon's CFO shared an interesting perspective about Verizon's shared data plans while he was speaking at a Goldman Sachs investor conference yesterday. He basically touted the benefits of Verizon's Shared Data Plans, and didn't think unlimited plans represented any real value to most consumers. He believes that unlimited data will simply go by the way side. Here's a direct quote,
[Editor's Note: There are a few of problems with this argument. First, if most consumers are not really using that much data, as he suggests, then there would be no reason for the carriers to switch to tiered data plans. Second, it doesn't matter if a person doesn't regularly use up that much data on a normal basis. The fact they might need to at some point and will have to pay exorbitant fees in order to do so, is simply a way for the carrier to price gouge the customer. In fact, it's possible that the reason some users come in lower than their data allowance is because they are afraid of overage charges. The idea of an unlimited data plan is that it offers the "peace of mind" option for customers. Lastly, Verizon's Shared Data Plans would likely be more palatable if they were a bit more cost effective and less aggressively tilted in the carriers favor. It just makes Verizon look greedy.]
“So what customers are understanding and through our good sales routine is once you explain to a customer their usage on a monthly basis, unlimited is just a word, it doesn’t really mean anything and that people don’t really — I think a lot of consumers think they consume a lot more data than they really do. So that whole unlimited thing I think is going by the wayside and they see the benefit of going to the shared.”
Of course, that was just my editorial rant above. There are multiple perspectives to this, and we would like to hear yours.
09-21-2012 11:02 AM
Glad to read his comments on this matter. I suppose all the throttling and threats I was once experiencing when I went "over" on my unlimited data were just words on my screen and a bad tummy ache.