Verizon to Open Access to Apps and Devices Next Year
What's Verizon's goal in doing this?
If their goal is enlarging their customer base, then they're going about it the wrong way. When a customer starts new service, they (usually) want a new phone. They don't want to reactivate the phone they got three years ago when they signed up with Sprint. Not only that, but VZW's phone prices will skyrocket for new customers. I just don't understand where VZW's going with this.
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2 things -
Lawsuit prevention - especially with a high profile company like Apple due to them locking the iphone. Although Apple may win the suit, they have to divert a lot of resources into winning it, a lot of resources that can be rediverted to more profit-driven business sectors. So rather than waiting around for VZW's turn for a lawsuit, they simply want to prevent it completely.
Decrease expenses - VZW loses money when selling phones at subsidized prices and rely on contracts to make up for it. VZW would love to sell just service and tack on 1yr-2yr contracts on phones they did not lose any money on (sell at subsidized prices). I am pretty sure other sales reps can attest to this - we love new activations that bringing previo...
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Lawsuit prevention - especially with a high profile company like Apple due to them locking the iphone. Although Apple may win the suit, they have to divert a lot of resources into winning it, a lot of resources that can be rediverted to more profit-driven business sectors. So rather than waiting around for VZW's turn for a lawsuit, they simply want to prevent it completely.
Decrease expenses - VZW loses money when selling phones at subsidized prices and rely on contracts to make up for it. VZW would love to sell just service and tack on 1yr-2yr contracts on phones they did not lose any money on (sell at subsidized prices). I am pretty sure other sales reps can attest to this - we love new activations that bringing previo...
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Oh yeah ... for my last paragraph I forgot to add that you may not see those results initially since it will still be CDMA based (and the CDMA market is small compared to the GSM market) ... but you will in the near future since almost everyone and their moms (including VZW) has committed to LTE - definitely setting up for the future.
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