Verizon CFO Says You Don't Need Unlimited Data - The UpStream

Verizon CFO Says You Don't Need Unlimited Data

posted Saturday Sep 24, 2016 by Scott Ertz

Verizon CFO Says You Don't Need Unlimited Data

As Sprint and T-Mobile have moved back to offering unlimited data, Verizon's CFO has taken a different route. At an investor conference, Fran Shammo said,

At the end of the day, people don't need unlimited plans.

While this might be correct for many people, there are those of us who use a lot of bandwidth. Combine high usage with Verizon's view on data plans and you end up with a portion of the market incapable of using Verizon Wireless as their provider. Luckily, this is a scenario handled by the market, which is why there is more than a single provider.

Verizon's reasoning, though, remains a bit strange. They continue to say that the reason they do not offer unlimited plans is that it is impossible to make money on unlimited data. Obviously the other carriers don't agree with that sentiment. But Verizon is also quick to point out the sub-clauses in their competitors' agreements. For example, T-Mobile charges more for high quality video and slows tethered connections.

One thing Verizon has generally focused on is not having a knee-jerk reaction to competitor business decisions. The company prefers to watch the market and make decisions based on what customers are asking for, and this suggests that they believe they are not losing business, or at least not enough business, because of unlimited data. Shammo said on the topic,

We look at our competitors closely. We'll respond when needed.

At least that means that Verizon is not entirely opposed to the idea in the future, they just don't see the merit in it today.

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