Verizon chief believes consumers 'don't need' unlimited plans

Verizon chief believes consumers 'don't need' unlimited plans
Speaking at a recent investor conference, Verizon CFO Fran Shammo made a statement that's sure to ruffle the feathers of mobile consumers far and wide. In speaking of Big Red's strategies amid the disruptive, unlimited price plans of rivals like John Legere's T-Mobile, Shammo outlined his belief that such packages are both unrealistic and largely unnecessary. 

While T-Mobile is by no means the only network operator to offer unlimited bundles, much of Shammo's observations were seemingly aimed at the Uncarrier. From a business point of view, he said, "you cannot make money on an unlimited video world," something that T-Mobile has been heavily promoting in recent times.

Indeed, while T-Mo, Sprint and AT&T have bought into the lure of selling unlimited plans, Verizon believes that its own services are more customer-friendly, despite the data caps. With investors surely curious as to whether Big Red has any unlimited ambitions, Shammo's suggestion that folks don't need uncapped bundles seemingly put paid to any such notions. In fact, he also added that such users tend to abuse unlimited systems by using copious amounts of data, which is an issue that Verizon won't have to contend with for now. 

While Verizon remains king of the hill, it arguably doesn't need to bow to the whims of its competitors. The company isn't getting complacent, though, and isn't completely ignorant of what's going on around it. As such, Shammo also added that the company will keep a close eye on the moves of its competitors, and respond as and when it sees fit. 

Needless to say, you're on Verizon and hoping for the firm to announce unlimited plans, you'll probably be waiting a while. 

Do you agree that unlimited data is unnecessary? Let us know what you make of Shammo's sentiments in the comments below. 



1. torr310

Posts: 1721; Member since: Oct 27, 2011

That's correct I don't need unlimited plan. I usually use less than 10GB/month, but I would love to have 20GB data/month to be safe.

13. Acdc1a

Posts: 477; Member since: Jan 21, 2016

5 years ago you would have scoffed at the need for 10GB. Why should you have to count?

17. Bm888

Posts: 517; Member since: Jul 06, 2015

Verizon + Apple = veRiPPOF

20. trojan_horse

Posts: 5868; Member since: May 06, 2016

My thoughts too. Verizon's CEO sounds like cupertino, when he apparently dictates to consumers what they do not need (unlimited data), instead of giving the consumers what they want!

26. lyndon420

Posts: 6915; Member since: Jul 11, 2012

I suppose the big question much would you be willing to pay for unlimited data on your phone? My unlimited WiFi gets me through most of my big data consumption...when I'm not on WiFi I just have to be careful how much I visit PA's site. ;)

27. Acdc1a

Posts: 477; Member since: Jan 21, 2016

5 lines through the business for $160, so $32 each line... that's what I'm willing to pay.

29. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Yes but that usually ushers in the death of such companies. Yahoo, Nokia, AOL, Blackberry, etc. all said the same things to the newcomers, and look where they are now.

51. ctdog4748

Posts: 797; Member since: Mar 05, 2016

I don't think you realize how stupid you are; if Verizon and cupertino weren't delivering what customers wanted, they'd be out of business, because people would simply go to the competition.

65. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

There's a difference between Verizon and Cupertino in reference to your statement. The iPhone and it's competitors are available everywhere. Carriers OTOH are not available everywhere. In some cases, Verizon is the only option for people who want cell service, especially outside of major metro areas. I live in one of those areas, and believe me if I had other options, I'd explore them without a.second thought.

2. eN16HTMAR3

Posts: 253; Member since: Oct 08, 2013

Unlimited is needed. If anything just to make the consumer feel safe about using their data. When you have a cap looming over your head your less likely to use the phone and all the features it has! Pretty damn sad to think consumers have to worry about using their own $500- $800 dollar devices.

8. CreeDiddy

Posts: 2284; Member since: Nov 04, 2011

Why do you need unlimited data? Are you streaming Netflix or YouTube all day? Invest in an home ISP rather than use carrier data. Yes I have Verizon for more than 14 years. Their is no need for unlimited data. I don't want to pay $95 a month for "piece of mind". Instead I pay $57.40 for 8GB of data with 5GB of additional bonus data for life. If I need more data I pay $8.20 more. Whoopee. That would give me 21GB of data. If I need more than that then I will happily pay for $8.00 more per data cap. Not a big deal. I use roughly 300-400GB of ISP data on a monthly basis. For those that are TMO or Sprint, you guys are paying more than $20-$25 just for 1080p. I find it sad. Verizon's data can stream 4k if they wanted to without paying more for data.

14. Acdc1a

Posts: 477; Member since: Jan 21, 2016

You really are drinking red Kool Aid. Netflix was shipping you less than 480p video by default because of Verizon's sick data caps and overage. I'm sure you didn't notice. You keep counting data and I'll keep not worrying about it...and T-Mobile haa eliminated my need for a home ISP. Why pay for what you don't need? Isn't that what you just said?

16. 14545

Posts: 1835; Member since: Nov 22, 2011

Your numbers don't add up. You say you pay 57 for 8+5gb, but that doesn't make sense. A) is that just for the data? If so, then that's not your total bill. Also, that would be 13 gb, not 20 as you suggest. Then you add the BS line access fees, and that number goes up wildly from there. Mine is 133+tax for an older double the data plan with 20gb of data and 3 lines. That also includes a 22% discount through my employer. So either you are lying, or paid to sell people on the company. Personally, Fransuckad!ck can retire already. He is an awful CFO (Yahoo and AOL, WTF?) and clearly doesn't understand the commodity that his company has become. I'm about to switch after 10 years of service because I am tired of the constant screwing with my bill (long story) and I have had dropped calls galore the last two-three years. I can't use my phone at work. I can't use it at family's house in rural GA (even though they are billed as the "can you hear me now" company), and I'm tired of them thinking that we don't deserve full control over OUR DEVICES, that WE PAID for. The quality of service has declined under his tenure, the quality of the customer service and the pricing have all gone to crap since he has been in charge. It's time for someone that actually knows how to manage to take over as CFO. (Assuming this guy from Tyson can, which is TBD)

34. CreeDiddy

Posts: 2284; Member since: Nov 04, 2011

Here's my math: 8GB plan with 2GB + 2GB + 1GB bonus data: $70 + 18% discount + $20 line access + $20 line access + 7 Plus 256GB $40.38 + 7 Plus 256GB $40.38 - $27.08 device credit - $27.08 device credit = $123.99 + taxes and NO DOWNPAYMENT 12GB plan with 2GB + 2GB + 1GB bonus data: $80 + 18% discount + $20 line access + $20 line access + 7 Plus 256GB $40.38 + 7 Plus 256GB $40.38 - $27.08 device credit - $27.08 device credit = $132.20 + taxes and NO DOWNPAYMENT 16GB plan with 2GB + 2GB + 1GB bonus data: $90 + 18% discount + $20 line access + $20 line access + 7 Plus 256GB $40.38 + 7 Plus 256GB $40.38 - $27.08 device credit - $27.08 device credit = $140.40 + taxes and NO DOWNPAYMENT I can keep going!!!!

35. 14545

Posts: 1835; Member since: Nov 22, 2011

That makes more sense, what you posted above did not. Nothing you posted here is 57.xx, it's 123-140. Also, what are you doing paying for a phone in payments? If you can't afford an iP7 outright, then you probably shouldn't be buying it.

37. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

I've never understood that train of thought. Whether you can afford it outright or not, making payments makes more sense IMHO. Sure you could lay the total amount out upfront, but they're not charging interest when you make payments. And you have more money to use each !month that way. And if you do decide to leave the carrier or simply cancel your service, you pay off what you owe. So really, what's the downside? My niece is paying her phone off through a payment plan. I pay the bills so I know what she's paying for it each month, and the amount per month adds up to the retail amount, so there's no interest or added fees if you take that option.

41. 14545

Posts: 1835; Member since: Nov 22, 2011

In general, I agree. However, the way the OP is laying it out it doesn't seem like he/she is able to pay it up front or they wouldn't be including that in the breakdown. It's irrelevant to the final numbers since the phones are relatively the same cost across carriers. I have a S7 on a payment plan, however I can pay it off tomorrow. It's better for me to earn 50 or so bucks in interest over the time I could have paid the phone outright. But the problem is that most aren't *able* to pay for it upfront, but they are still buying it. If you can't pay for it in cash, you don't need it. Being able to and choosing not to are two different things.

53. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

So what if they aren't able to pay for it upfront? If everyone followed your train of thought, sales of these devices would be cut in half, easily. There are tons of things thst are bought over time, but just because they can't buy it outright, doesn't mean they can't afford to make payments on it. And it's better to spearhead it out with smaller payments over a few months than to pay it outright, have an emergency come up and not have the money to cover it. It's up to them to make it work, and it's not up to you to decide what's best for them. Just because it isn't how you'd do it that doesn't make it wrong.

61. 14545

Posts: 1835; Member since: Nov 22, 2011

It's because it's living beyond your means. If you are living beyond your means, I'm certain that an emergency fund is not in your vocabulary. That's the generic usage of "you", not specifically speaking about you. It doesn't make good financial sense to purchase something on credit if you don't have the money to pay for it upfront. Especially in the instances of new phones.

64. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

It sounds to me like you believe that the only people who should use credit are those who don't actually need to. Just because you're paying on something doesn't mean that you can't have an emergency fund or be financially responsible. You're painting with a broad stroke when in fact there are plenty of people who buy on credit and don't have financial problems. Then why would even have credit if you could afford to pay for it upfront? Buying on time was introduced for people who couldn't afford things and this gave them a way to get them, not for people who could afford it to pay for it over time. But again, this is not your worry. It's not up to you or I to determine what other people do.

55. CreeDiddy

Posts: 2284; Member since: Nov 04, 2011

Your argument makes no sense. Carriers charge no interest on device payment plans. Why would I leave? Even if I did I could afford to pay it off. TMO and every carrier is charging full retail for the phones. Again not a valid argument.

40. CreeDiddy

Posts: 2284; Member since: Nov 04, 2011

Don't you realize that in order for you get the $650 device credit you must go through device payment plan. Come on challenge me some more! Lol Verizon is the winner by a long shot with the device payment credits...TMO is a rip off! You pay $249 for each 7 Plus...

42. 14545

Posts: 1835; Member since: Nov 22, 2011

You don't get a service credit. What are you talking about? I'm on verizon you genius. I already told you what I pay. Three lines, 133 per month for 20 gb of data. Its 174 (or about that) with my S7. That covers me, my wife and my mother. Although my mother has a dumb phone. I get no credit for a device payment plan. I only pay it in payments because it's interest free and over the course of the 24 months I earn about 50 in interest. My taxable investment account is up 9% so far for the year. You can do the equal series math if you would like.

56. CreeDiddy

Posts: 2284; Member since: Nov 04, 2011

Your not understanding the math. For a 256GB 7 Plus you eventually pay more for iPhones with TMO. Proofs in the math. I've called several local TMO stores and said that they agreed that VZ has the better deal and they also said that TMO throttle family Data plans. The $650 credit only applies to iPhone 7's and not your S7 or on your older phones. Thus you aren't getting a good deal. You'll have to wait for a $650 promo on the S8 or Note 8 to get a good deal.

62. 14545

Posts: 1835; Member since: Nov 22, 2011

I understand fully, there is no actual credit involved. You are just saying it to funny up the math. You can't count some imaginary credit when it doesn't apply to every phone in every instance. I get no such credit.

44. 14545

Posts: 1835; Member since: Nov 22, 2011

It would be 135 OTD for me on TMO, so clearly not a "rip-off" as you say. I haven't looked at ATT, but usually they are more than VZW since I don't think I get a discount there either. The TMO price is with no employer discounts, which I may or may not be eligible for.

57. CreeDiddy

Posts: 2284; Member since: Nov 04, 2011

How are you coming up with $135? Factor in downpaymnet and total cost with iPhone trade in device credits on two iPhone 256GB 7 Plus's.

63. 14545

Posts: 1835; Member since: Nov 22, 2011

What downpayment? You mean buying the phone? Oh, I have to do that on both carriers, therefore it is irrelevant to the discussion.

49. tedkord

Posts: 17507; Member since: Jun 17, 2009

They don't care if you feel unsafe and use your device less, so long as you pay them every month,

3. palmguy

Posts: 988; Member since: Mar 22, 2011

As customers migrate to what carrier makes them happy, Vz will then wake up.

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