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Mobilizing the Business and Business of Mobile

Is Verizon introducing contract-free services?

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Starting next week, Verizon might be introducing contract-free, month-to-month payment services, according to BoyGenius Report. This would be useful for users who want to use devices currently not available on Verizon network or want to pay full, unsubsidized price for the phones. Here are the details of the offer:

  • Available to Consumer, Corporate Liable, and Employee Liable customers (excludes Federal Government customers)
  • Any current voice &/or data calling plan and equipment available
  • Customer credit checks apply.
  • Device Initiation Fee and/or Activation Fee must be charged (no exceptions)
  • MTM customers are eligible to accept any applicable promotional offering but must agree with the contract term associated with the offer (i.e. they will no longer be a MTM customer)
  • Customers are not eligible for equipment discounts if they do not agree to a one or two-year minimum term
  • Corporate and employee liable customers are eligible to receive accessory discounts on month to month agreements
  • MTM customers can terminate their service at any time (effective on their next bill cycle date) without incurring an early termination fee
  • New Customers: Use Month to Month as the contract term
  • Existing Customers: Use Upgrade Reason Code UN only
  • I think this is a smart move on Verizon’s part, if it is executed.  Clearly, it has lost out on some of the hot new devices to AT&T and Sprint. Also, it is increasingly clear that there are several devices coming out in future that users may want. This will allow them to get additional users to increase their revenue. It also allows them in the long run, if this program is successful, to reduce or do away with subsidies for the contract users. Also, I wonder how this plays into the Machine-to-Machine solutions that they have been attracting lately. Any ideas?

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    Written by dvdand

    September 16, 2008 at 1:07 pm

    Posted in Verizon

    Tagged with ,

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