Verizon CEO Willing To Drop Contracts If The Customer Demands It

T-Mobile recently reimagined itself, completely getting rid of traditional contracts and subsidies. Their plans became cheaper and they now offer phones for lower up front cost and monthly payments. It’s a huge change in the carrier world, as the rest of the big four carriers still use contracts. However, how long will that last?

Lowell McAdam, Verizon’s CEO, responded to T-Mobile’s changes very positively.

I’m happy when I see something different tried. We can react quickly to consumers’ shifting needs.

If T-Mobile finds success in their new system, Verizon may very well kill off contracts and go down the same path. There is no doubt that T-Mobile’s new system saves you money, even if it looks more expensive at first. Could Verizon devise a way to make the same amount of money they do now without contracts?

And what about the other carriers? AT&T CEO Randall Stephenson said a few months ago that lowering rates and getting rid of subsidies was a possibility, so T-Mobile is definitely not alone in this. Maybe we’ll see a massive shift in the way carriers work in the US. How would you guys feel about that? Leave a comment!

CNET

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