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Here’s why Verizon isn’t going to abandon subsidies any time soon

11
Mar
2014

If you were hoping for some radical changes to Verizon’s business model in the near future, you’re probably out of luck. In the same conference call that we covered yesterday, Verizon CFO Fran Shammo not only explained how his company can get away with charging more for its services, but why those services have remained fundamentally unchanged in a rapidly evolving market. “We believe that the subsidy model is an extremely good model,” says Shammo. “It has done wonders for us in this industry. So I think to abandon that […] is a mistake.” Shammo acknowledges that there are customers who would prefer installment plans to standard two-year subsidies, but he believes the programs in place do enough to meet that

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