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Verizon Readying Price Increases for Wireless Customers

May 17, 2012, 7:53 AM by Eric M. Zeman

Verizon Communications CFO Fran Shammo told investors that the company plans to increase prices for its wireless and FiOS home internet services. Speaking at the JP Morgan investor conference earlier this week, Shammo said that the company expects its new shared data plans will result in customers paying more for their services as a whole. "I think revenue ARPU [average revenue per user] will continue to grow as we get into data share plans and people start to connect more devices [on the network]. As they add more devices, they are going to have to buy up into tiers. So again, you will see the revenue increase there." Shammo's comments were meant to assuage investors' concerns about Verizon's large capital expenditures to build its LTE and fiber networks. Shammo noted that he doesn't think the price increases will cost Verizon customers, and pointed to the company's recently implemented $30 upgrade fee. Shammo said Verizon Wireless didn't see "any impact from a customer base from that fee. So that was the right thing to do." Shammo didn't specify which fees might be increased, not when they might be raised.

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Comments

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This forum is closed.

Archer Bullseye

May 17, 2012, 2:15 PM

Calm Down Peeps

🤣 if you took the time to read the original press release you would understand that this was the CFO speaking to investors about where new income will be coming from. VZW will not be raising prices, but they will see increased ARPU from shared data plans and that consumers continue to use more and more data. The sky is not falling.

Red_Minx

Yeah I do get that, but it's not like they've batted an eye at raising the costs before. Thing with a meeting with investors, you can't just stand up there and lie, you'll be voted off the island in no time lol

JBlaze74

The sky may not be falling, but it is definitely starting to rain. The fact of the matter is that the CFO also stated that people will be paying more for the shared data plans than they are paying now.. Please explain to me how that does not equate ...
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Jarahawk

May 23, 2012, 4:03 PM

Three Smartphones

I have three smartphones on a 1400 minute share plan and none of them is using 2GB of data. Why is Verizon refusing to continue taking my money when I am happily giving it to them? In fact, not being allowed to continue giving them the extra money is going to cause them to lose $110 in revenue monthly. It just doesn't make sense to me.

cheechnotchong

May 19, 2012, 10:55 AM

I'm quitting my job at Verizon.

This is becoming much to difficult to justify this to understandably angry customers. Every other person asks about this and they think that since I work at Verizon that I myself am the person that implemented these new charges or have the power to waive them (neither is the case). Anyone else in my situation?

GettingSleepy

There will always be idiots thinking you can do things you can't, some even think they know your POS systems better then you do. That's no reason to quit though.

I tell customers that customer service charges the $30 upgrade fee (since it in no ...
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Jarahawk

So what's the best feature phone Verizon sells these days?

Mark_S

May 20, 2012, 11:55 AM

That is why.......

there is Page Plus

redboy

May 17, 2012, 8:01 AM

scary

VZW president saying that they did not see impact from customer base over the $30 upgrade charge, so it must be the right thing to do... sounds scary. Does this mean as long as we do not complain, they will continue to gouge us?

OmegaWolf747

Yes.

Price increases are never the right thing to do unless there is some benefit to the customers in terms of better devices, faster networks, more bandwidth.

When they just keep take, take, taking without even tossing us a bone, all they do i...
(continues)

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johnhr2

No one complains but Verizon will go from having the most subscribers to less than T-Mobile in two years. They all will jump ship to other carriers. NO ONE COMPLAIN SO VERIZON STILL THINKS ITS OK.

...

Jayshmay

That's exactly what it means!

Knock, knock Sprint!

60dollarcarcharger

Definitly agree with you here. Saying "it was the right thing to do" was definitly not what he should have said

From Verizon's standpoint he's right though aka why not charge more if people will pay it

but I'm a firm believer that if you do the...
(continues)

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tjobrien21

redboy said:
VZW president saying that they did not see impact from customer base over the $30 upgrade charge, so it must be the right thing to do... sounds scary. Does this mean as long as we do not complain, they will continue t

...
(continues)

Jarahawk

Yes. Of course, they'll do so regardless. Shaking a few thousand customers means nothing to them.

Slammer

May 17, 2012, 8:40 AM

This Is Where It Starts.

Expect other carriers to follow.

Price increases are generally expected. However, with formidable competition slowing dying and lack of regulations within the wireless industry, the two largest carriers will indeed, control the market standards across the board. This will trickle down to the smaller. MVNOs will take the hit also as they sublet from the mother carriers. Their prices will increase as well.

We need more competition people no matter what side of the fence you're on for carrier support.

That is the reason I backed a Tmobile/Sprint merge if a merge had to happen.

John B.

Jayshmay

What about MetroPCS & Cricket?
You don't view them as providing competition? Metro now has over 10m customers, and has been growing steadily for the past 2-3yrs.

Personally, I think it would be good for Metro & Tmo to merge.

...

Jarahawk

A merger doesn't have to happen. A merged T-Mobile/Sprint entity would be a negative.

Jarahawk

May 17, 2012, 5:26 PM

"Shammo noted that he doesn't think the price increases will cost Verizon customers"

Translation: They're whipped. They would never leave us.

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