As difficult as it may sound, Verizon might have to offer unlimited data packages to consumers.
AT&T is now bringing its unlimited data plans back for a limited time period. So does this actually ignite chances for Verizon Communications Inc. to bring its unlimited data plans in back in the market to compete with its rival? Sadly, if your hopes are high then you are most likely to be disappointed.
According to the DSL Reports, FransShammo, the Chief Financial Officer at Verizon told the people attending during the investor’s conference that took place this week that the company will never come up with the unlimited data plan again for Verizon users since the way unlimited data plans work is not benefiting the company economically at all.
“I’ve been pretty public saying the unlimited model does not work in an LTE environment,” claimed Shammo. He further added, “Unlimited is a very short-term game in the LTE market. Eventually unlimited is going to go away because you have to generate cash to reinvest.”
This is relatively strange claim made by the wireless network carrier giant since a majority of the company’s rival is offering data packages in some way or the other and they have never complained about having any issues. Moreover, after offering such services, they also have ample cash to make investment in network upgrades. Since many analysts have observed in the past, data caps similar to the ones being used by VZ are merely a crock that is not important for proper network management and is only benefiting the carrier’s wireless margins.
Other than that, the DSL Reports highlights the fact that the company is satisfied even after it had to let go of its video streaming service ‘Go90” via its own data cap. This means that the carrier is not bothered when the users watch a lot of videos on their network as long as they are doing this via its own app.
None of the claims made by the company are surprising at all. Verizon is one of those companies that is extremely resistant to bring about a changed and is struggling in contrast to other wireless carriers. This is relative to the initiatives like giving up on the two year contrasts and giving early termination fees to pay off rivals.
It needs to be understood that VZ needs to remain on par with the industry standards. It is not possible for them to survive if they remain to be head over heels. There are numerous other wireless network companies in the industry that are offering the same service as Verizon and offer packages that are incentivized. This creates an ugly situation for the former who just wishes to add on its bank reserves but does not want to lure users by giving them advantages.
Initially, Verizon used to offer data plans that are were extremely popular. However, it now seems like the company has changed its course completely. Many analysts predict that the company will come up with new data plans however they will be a result of a lot of whining and misery.