Saturday, March 5, 2011

Verizon Plans to Increase ARPU with Tiered Pricing (Speed, Volume)

Verizon - CFO and EVP, Fran Shammo (picture), provided some insights into Verizon future pricing plans speaking at the Morgan Stanley Technology, Media & Telecom Conference earlier this week.

" .. So as we bring more devices into LTE 4G, I think it is a big differentiator for us and that will drive the tiered pricing structure that we have out there today, which is $50 for the 5G and $80 for 10. So if you think about migrating to 4G from the EVDO perspective which is $30 unlimited, right there you have an ARPU accretion when people move and use more bandwidth on the LTE spectrum. So we think that we can drive the ARPUs and drive customer growth there ...  So we will probably do that probably in the mid-summer timeframe, somewhere in that perspective .. We see the potential of our customer base is spending that $30 to $50 range which is then why we go to, I think tiered pricing will be important down the road"

"And then, of course, LTE also gives us the capability to price very differently than we priced before. Not just on consumption, but also possibly on speed differentiation".
See also - "Verizon Wireless: Unlimited Data is only for 95% of Subscribers" - here and "AT&T Considers Speed and Volume Tiers in LTE" - here.

Full transcript -  "VZ - Verizon at Morgan Stanley Technology, Media & Telecom Conference" - here.

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