Verizon not looking to drop the subsidy system anytime soon

Verizon Wireless

The CFO of Verizon Wireless, Francis Shammo has claimed that despite the decline in the smartphone or tablet subsidy model, the company isn’t look to ditch it. He claims that the carrier’s Verizon Edge program which is based on the installment plan has been very successful, but subsidy and contract based models cannot be ignored either.

He further mentions that this model done “done wonders for this industry”. Shammo believes that there are some risks involved with the installment plans that need to be addressed. According to him, potential customers of the Edge program will need to have a decent credit rating to avoid non-payment and other such issues. The carrier recently announced its new Allset prepaid plans to lure in buyers of midrange devices, which has provided widespread publicity.

With the resurgence of the installment plans across the U.S. especially from the likes of T-Mobile and AT&T, we’re not sure if Verizon can cling on to the subsidy model for long. The carrier will inevitably have to change and adapt to the situation as other carriers are increasingly leaning towards customer friendly plans.

Source: CNET

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