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Verizon Making It Cheaper To Stay Or Go

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clever

asleeponatwinbed

Jun 29, 2006, 9:54 PM
Prorating the ETF is clever. I'm really impressed. I feel like everybody on this thread has really missed the significance of that.

Obviously Verizon is doing this drive revenue, but not in the way that everyone thinks. Strigl knows that the other carriers are going to have to play catch-up with this (Cingular is already doing it), but that's exactly what he wants.

Right now, VZW has a port-in rate of about 2:1 with most carriers (even higher with Sprint/Nextel). That means for every customer who leaves Verizon for another carrier, two customers leave their carrier for Verizon. So when everyone has cheaper termination fees we create more motion, because it becomes easier to switch carriers.

The ratios will basically stay at 2:1, bu...
(continues)
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dca

Jun 30, 2006, 10:06 AM
Certain Cingy markets have always had the pro-rata thing going on...

This is yet another (admirable) ploy or marketing scheme from VZW. Their churn is the lowest, there's no way in he*l they're gonna' loose anybody so why not add MORE reasons for the customers you have that are NOT going to leave, stay?
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foneguy

Jun 30, 2006, 1:43 PM
Alltel has been doing this for years. The only catch is, you have to ask for them to prorate the ETF.

There isn't much original stuff you can do anymore. It's just an endless cycle of "follow me following you".
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