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As T-Mobile Network Improves, Verizon Needs To Stop Bullshitting

For years Verizon Wireless has defended its higher prices by insisting they simply reflect the incredible superiority of the Verizon network. It's not only why Verizon often refuses to compete on price in anything other than a superficial level, but it's why the company also continues to pretend that consumers don't want unlimited data. But with reports this week that T-Mobile's network is finally catching up in both speed and coverage, Verizon is going to be forced to do something it has simply refused to do over the last decade: actually listen to its customers.

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In a competitive market, the consumer is supposed to tell you what they want, and you try your best to deliver it.

Verizon Wireless has consistently embraced the opposite strategy: telling consumers what it is they're supposed to want.

Nothing exemplifies this more than Verizon's insistence that users don't want or need the simpler option of unlimited wireless data, an option Verizon technically eliminated back in 2011. Ever since, Verizon's been repeatedly trying to convince users that their desire for simpler, unlimited plans is simply a "gut feeling" they should ignore.

"While unlimited data may sound attractive, there is no practical effect of data limits on the majority of users," A Verizon consultant tried to argue in a blog post by the company. "Understanding this should bring rationality to a discussion that is often held on a “gut feeling” level."

At the end of the day, people don't need unlimited plans
-Verizon CFO Fran Shammo
A new Verizon ad proclaims that most users buy more data than they need, ignoring that Verizon scares users into doing this quite by design. Because "two out of three people use less than five gigs," the add claims, the company's $55 for 5 GB (plus all the various connection and other charges) plan is all users should ever need.

The ad reflects Verizon executive statements over the last few years. Verizon seems to think that by repeatedly telling users they don't want unlimited data plans, this will somehow, magically, become true.

"At the end of the day, people don't need unlimited plans," Verizon Chief Financial Officer Fran Shammo said last September. "You cannot make money in an unlimited data world," the CFO added, ignoring the fact that T-Mobile, well, exists.

Verizon's behavior has been a master class in hubris. It's the kind of thinking that's developed at companies that have spent generations as government-pampered mono/duopolies, leading them to somehow believe they're above the rules of reality.

This hubris extends to Verizon's dedication to endlessly raising prices and believing that consumers don't notice. Most recently that manifested in Verizon's decision to increase the company's "upgrade fee" to $30. At the time, Verizon claimed this hike was necessary because of "increased costs," ignoring the fact that Verizon's costs actually have declined in recent years.

Consumers aren't always the brightest bulbs in the drawer, but the lion's share of them can still somehow ferret out that Verizon's bullshitting when it claims that more restrictions and higher prices are somehow better. As a result, T-Mobile continues to add more postpaid customers per quarter than any other wireless carrier in the industry, and Verizon's been left looking to gobbling up failed 90s internet brands in a desperate attempt to deliver growth to insatiable investors.

But there's an obvious path forward for Verizon executives if they want T-Mobile's impact on earnings and growth to end: stop bullshitting, and start actually competing.

Most recommended from 109 comments



karpodiem
Hail to The Victors
Premium Member
join:2008-05-20
Troy, MI

17 recommendations

karpodiem

Premium Member

Verizon lost my business

I've moved four family members to T-Mobile. I still soak them to the tune of 20-30GB a month with my grandfathered unlimited data account.
NObama
Premium Member
join:2005-11-09
Old Hickory, TN

13 recommendations

NObama

Premium Member

Still a tough call if you travel

I am on the road quite a bit, and IMO Verizon is still king of the rural coverage. I manage the deployment of wireless networks and have been working on T-Mobile for the past couple of years. Even with their new builds where they had no coverage, there are huge holes in the rural areas. Most of the time Verizon does have service in these places, even in very remote areas. I am seriously considering switching back to T-Mobile, but like having LTE available traveling on remote mountain routes. I know for most people this is not an issue, but if you travel a lot, Verizon can't be beat.

Frank
Premium Member
join:2000-11-03
somewhere

9 recommendations

Frank

Premium Member

Limited plans are a hassle.

Seriously,

We use anywhere between 12 and 24 GB a month total split between two cellphones (6gb to 12gb per line depending on the month).

For the so called premium product that verizon has, Its not worth it to have to be constantly checking over your shoulder to make sure youre not exceeding the limit. Worse, if you do exceed the limit, having to deal with the hassle of slow data. Seriously, if you have to deal with that youre better off going with an mvno where youll get more data for your $$$.

Oddly enough I used to have an unlimited data plan on Verizon but it had limited voice minutes and what got me to switch to an unlimited tmobile plan was constantly having to watch my minutes.

srtdodge05
Premium Member
join:2011-10-16
Ypsilanti, MI

8 recommendations

srtdodge05

Premium Member

Waiting

I'm hoping that Verizon will comeout with something soon. Not asking for unlimited data but lower price would be nice.

rpeAMP
join:2000-12-02
San Antonio, TX

7 recommendations

rpeAMP

Member

TMO making strides but the studies don't tell the whole story

I carry a VZW phone for work and a TMO phone for personal. TMO has made incredible strides...they are markedly better than ever before and they are absolutely winning the marketing game, which is 50% or more of the battle for subscriber adds. But I still have consistently better performance with VZW. If you are mostly using data, and not on calls, you may not notice it as much, but TMO continues to have dead spots and trouble inside buildings in even the most densely populated areas around here in DFW. My guess is over time, they will begin to focus on these trouble spots and better tune in their coverage. VZW has had more than a decade to do just that, so it's only a matter of time if TMO continues to invest in its network as all indications are they will.
JChris
join:2015-11-19
Raleigh, NC

1 edit

6 recommendations

JChris

Member

Verizon won't change until it starts seeing major subscriber losses.

You can keep saying that Verizon should or must start competing in the face of competition from T-mobile. But the reality is that until Verizon actually starts feeling the pinch in the form of mass subscriber losses (and I'm talking in the neighborhood of 1,000,000+ subs/year losses) they aren't going to change because they don't have to.

Despite being hated by many, Verizon continues to add subscribers every quarter. It is AT&T that is losing subscribers and is in trouble, though they will claim they are only losing less profitable customers.
ILikeTech
join:2015-03-09

6 recommendations

ILikeTech

Member

does "coverage area" include indoor coverage too?

admittedly, its been about 2 years since I tried t-mobile but my huge issue wasn't coverage out doors. I just couldn't get crap inside the house or any buildings. That is where Verizon shined over T-Mobile for me.

I wish there was a way to "test" the network before dumping a bunch of money in to switching.

MalibuMaxx
Premium Member
join:2007-02-06
Chesterton, IN

5 recommendations

MalibuMaxx

Premium Member

I've used both.

In rural america TMO doesn't compete still in 2017. Just saying... VZW, AT&T, and Sprint are much better when it comes to call's. TMO VoLTE and you might have a shot / better experience. Hand off was horrible on my Nexus 6. I will agree that DATA is fine most of the time on TMO... but Verizon still has the edge IMO...