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3 Year Contracts = VZW's Answer to the Cingular Threat?

VZWCustServ

Jul 18, 2004, 2:39 PM
The Good:

More discounts on the equipment!

Free bonus minutes for the term of the contract that make the plans even a better deal than Cingular's!

A better deal than even New Every 2!

The Unchanged:

Still no rollover...
Still no 7pm nights...

The Bad:

More complicated upgrade rules for customer service.
More oportunities for error in Point of Sale data entry.
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phonepimp3376

Jul 18, 2004, 2:43 PM
The truth:
More time to make up acquisition costs of each new customer.
Still no better choices for handsets, still behind most other carriers for feature rollout on new equipment.

A Question:
On 3 year, when will the customer be eligible for upgrade?
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VZWCustServ

Jul 18, 2004, 2:51 PM
phonepimp3376 said:
The truth:
More time to make up acquisition costs of each new customer.
Still no better choices for handsets, still behind most other carriers for feature rollout on new equipment.

A Question:
On 3 year, when will the customer be eligible for upgrade?



I'm not going to go into details because it's not public information, but it is similar to the curreny policy on 2 year contracts from what I know.
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phonepimp3376

Jul 18, 2004, 2:53 PM
I wouldn't expect you to, buddy...just getting an idea. Hey you're one of the GOOD reps...we gotta take care of you...lol
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kingfrog77

Jul 18, 2004, 3:20 PM
To read chris, Datz and 85 as well as many field reps, Cingular is NO threat and never will be.

I know they are. How can they not be? Head in the sand laurel resting never works.

I don't think many will want thee year contracts though. Speaking for myself, I only sign for one year at a time, even at the small $60 more for the phone. I paid $129 for the T637 instead of $79 because I would only sign for a year. I like being month to month and was that way with ATT for years. Keeps options open for new phone and CArrier selections if need be.
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CainMarko

Jul 20, 2004, 2:05 PM
Yeah 3 year contracts lead to empty stores... it's pretty sad when their phones are so expensive(yet cheap??how does that work) that they have to lock you in a 3 year deal. customers don't even want 2 year contracts... why 3?
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VZWCustServ

Jul 20, 2004, 2:19 PM
CainMarko said:
Yeah 3 year contracts lead to empty stores... it's pretty sad when their phones are so expensive(yet cheap??how does that work) that they have to lock you in a 3 year deal. customers don't even want 2 year contracts... why 3?


Actually, the majority of VZW subscribers are on 2 year contracts and the majority of renewals are on 2 year contracts. This shows us that our customer DO want 2 year contracts and might even want 3 year ones. YOU and I may only want 1 year contracts, but that puts us in the minority.

BTW, this information comes from looking at all 40+ million of our customers, not just a sampling. We have well over 20 million on 2 year contracts.

As far as locking customer in...
(continues)
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sherryberry

Jul 20, 2004, 11:09 PM
Sure existing VZW customers may go for the 3 years but no new customer would want to sign up for 3 years. For 3 years, I'd expect a free phone and tons of minutes for a low price. Then I'd ever sign for 3 years. But new customers just don't like being tied down... it's in human's nature not to want to get tied down :-P
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vzwpro

Jul 20, 2004, 11:15 PM
Very bad idea!!! Right now customers dont care paying the difference between 1 or 2 yr agreements so they wont ever consider a 3 yr agreement. What incentives or than a discounted price on equipment can you offer to make customers want to sign a 3 yr agreement?
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85percent

Jul 20, 2004, 11:19 PM
vzwpro said:
Very bad idea!!! Right now customers dont care paying the difference between 1 or 2 yr agreements so they wont ever consider a 3 yr agreement. What incentives or than a discounted price on equipment can you offer to make customers want to sign a 3 yr agreement?


you're the pro. you tell us. 😕


-Verizon Wireless Sales

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vzwpro

Jul 20, 2004, 11:35 PM
I removed myself from the "game" Didnt want to be another worker bee for the mamma bee. So I'm out of the loop.
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TheVZWMan

Jul 21, 2004, 8:01 AM
Well then that means you are no longer pro now doesn't it...hehehe
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vzwpro

Jul 21, 2004, 8:43 AM
I kept the name cuz it sounds cool...lol
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85percent

Jul 20, 2004, 2:19 PM
CainMarko said:
Yeah 3 year contracts lead to empty stores... it's pretty sad when their phones are so expensive(yet cheap??how does that work) that they have to lock you in a 3 year deal. customers don't even want 2 year contracts... why 3?


because we have the lowest churn, so most of the time customers dont care how long they're with us. if our customers are getting flawless coverage and good service, what reason would there be to switch carriers?


if it aint broke, dont fix it.. 😛


-Verizon Wireless Sales

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phonepimp3376

Jul 20, 2004, 2:26 PM
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.
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85percent

Jul 20, 2004, 2:31 PM
phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.


were close though.

and its alot lower than Cingular's and ATT's
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phonepimp3376

Jul 20, 2004, 2:35 PM
Can't speak for ATTWS, but Cingular's churn has been steadily decreasing over the last few quarters, while ARPU has been increasing.

A lot of our churn issue was associated with the GSM overlay. When we first started it there were some issues which caused people to leave. It took a bit to rebuild our reputation after that. With the overlay completed, we are seeing much lower churn. Let's hope it continues to fall.
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TheVZWMan

Jul 20, 2004, 2:50 PM
I would like to interject about the churn...it is showing on VZW intranet for the 1Q2004 VZW has a 1.6% churn rate which was rate #1 lowest in the industry...what was nextels churn 1Q2004??? huh huh? Come on punk??? hehehe
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lilgabe1

Jul 20, 2004, 2:54 PM
I know that we port in a whole slew of nextel subscribers.
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85percent

Jul 20, 2004, 2:56 PM
lilgabe1 said:
I know that we port in a whole slew of nextel subscribers.


Well because Nextell is focused on business/construction, I usually port in full business accounts (which is usually about 5-8 lines a shot)

-Verizon Wireless Sales

.
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lilgabe1

Jul 20, 2004, 2:53 PM
I think it might fall, but I also think that if Verizon made a change to 7 o'clock nights that they would be able to grab some Cingular customers quite easily. While Cingular may have just completed their GSM overlay, Verizon is upgrading its CDMA technology which arguably is better anyway. Verizon is still the market leader and can alter the market with even the slightest change in marketing strategy.
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TheVZWMan

Jul 20, 2004, 2:57 PM
I feel that you arte completely right, 7pm N&W's I honestly believe would blow Cingular away in most areas
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disturbed1

Jul 20, 2004, 3:01 PM
I agree that 7pm N/W is definitely a VERY attractive offer (especially since I use A LOT of N/W minutes) and I don't really like callin people after 9, but hey, I think rollover, fast forward, M2M are all better for the long run.
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Craftabc

Jul 20, 2004, 3:14 PM
I heard somewhere that they cant make there NW at 7 because that would make them a monopoly. Any of you Verizon guys know anything about that.
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TheVZWMan

Jul 20, 2004, 3:37 PM
yeah I saw that in this forum somewhere I don't if that is true or not, could be but I honestyly don't believe thqat we have tried to change it...plus it would be a major disadvantage that if say, Cingular has the 7pm nw and surpassed VZW in coverage, and the FCC would not allow us to change to 7pm nw...it would almost be as if the FCC said " you guys have too many customers so we're going to have to wait till some of them go elsewhere before you are able to change your night and weekend minutes"...other than that I don't think the FCC has any say as to what each individual company does with their calling plan...they just have say over spectrum and actual licensing on towers placement
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verizonrep

Jul 20, 2004, 3:42 PM
TheVZWMan said:
yeah I saw that in this forum somewhere I don't if that is true or not, could be but I honestyly don't believe thqat we have tried to change it...plus it would be a major disadvantage that if say, Cingular has the 7pm nw and surpassed VZW in coverage, and the FCC would not allow us to change to 7pm nw...it would almost be as if the FCC said " you guys have too many customers so we're going to have to wait till some of them go elsewhere before you are able to change your night and weekend minutes"...other than that I don't think the FCC has any say as to what each individual company does with their calling plan...they just have say over spectrum and actual licensing on towers placement


That ...
(continues)
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TheVZWMan

Jul 20, 2004, 3:44 PM
Another point for the VZWMan!!! oh yeah...hehehe...sorry...I'll go stand in the corner
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Craftabc

Jul 20, 2004, 2:54 PM
I really cant see anyone going with a 3 year service agreement. Its just too long. now maybe if there were some major perks with it, like any phone you want for free, or special plans. but to be honest, VZW plans arent nearly good enough for someone to sign up for 3 years. i mean if you know that in 2 years you will get twice as many minutes, rollover, nights and weekends at 7, and all that good stuff if you went with another company. it just doesnt seem practical. now of course you are going to get those customers who havent really looked at any other companies, and think 3 years if perfectly normal. but the informed consumer, I just dont see it happening.
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85percent

Jul 20, 2004, 2:54 PM
phonepimp3376 said:
With the overlay completed, we are seeing much lower churn. Let's hope it continues to fall.


Yea I'll keep my fingers crossed for Cingular.

🙄

-Verizon Wireless Sales

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TheVZWMan

Jul 20, 2004, 2:55 PM
85percent said:
phonepimp3376 said:
With the overlay completed, we are seeing much lower churn. Let's hope it continues to fall.


Yea I'll keep my fingers crossed for Cingular.

🙄

-Verizon Wireless Sales

.

lol no offense PP but so will I...
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Craftabc

Jul 20, 2004, 2:57 PM
I like to think of myself as Being a pretty well informed consumer, and I dont even like signing 1 year contracts. And i know there are much more hard core consumers that look for the best deal out there then me. But, we will see.
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RUFF1415

Jul 20, 2004, 6:30 PM
85percent said:
phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.


were close though.

and its alot lower than Cingular's and ATT's


85percent why must everything always come back to AT&T or Cingular with you? Maybe you'll be biting your tongue (finally) in a few months.
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85percent

Jul 20, 2004, 6:50 PM
RUFF1415 said:
85percent said:
phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.


were close though.

and its alot lower than Cingular's and ATT's


85percent why must everything always come back to AT&T or Cingular with you? Maybe you'll be biting your tongue (finally) in a few months.


Because they will be our biggest threat. It's going to be extremely competitive between the two giants when the merge happens. And yea, maybe I will be biting my tongue. We'll see 😉

-Verizon Wireless Sales

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RUFF1415

Jul 20, 2004, 10:47 PM
85percent said:
RUFF1415 said:
85percent said:
phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.


were close though.

and its alot lower than Cingular's and ATT's


85percent why must everything always come back to AT&T or Cingular with you? Maybe you'll be biting your tongue (finally) in a few months.


Because they will be our biggest threat. It's going to be extremely competitive between the two giants when the merge happens. And yea, maybe I will be biting my tongue. We'll see 😉

-Verizon Wireless Sales

.


Let's only hope...I think that ...
(continues)
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85percent

Jul 20, 2004, 10:49 PM
RUFF1415 said:
85percent said:
RUFF1415 said:
85percent said:
phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.


were close though.

and its alot lower than Cingular's and ATT's


85percent why must everything always come back to AT&T or Cingular with you? Maybe you'll be biting your tongue (finally) in a few months.


Because they will be our biggest threat. It's going to be extremely competitive between the two giants when the merge happens. And yea, maybe I will be biting my tongue. We'll see 😉

-Verizon Wireless Sales

.
...
(continues)
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RUFF1415

Jul 21, 2004, 7:44 PM
One of the many people annoyed by some of the things that you post here.
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southwestcomm

Jul 20, 2004, 3:45 PM
The only reason customers are signing two-year contracts is to take advantage of the equipment discounting. Offer the same equipment pricing on a one-year contract and I bet everyone would sign a one year.
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verizonrep

Jul 20, 2004, 4:06 PM
southwestcomm said:
The only reason customers are signing two-year contracts is to take advantage of the equipment discounting. Offer the same equipment pricing on a one-year contract and I bet everyone would sign a one year.


Well, common sense would be for someone to take the one year option IF the price was the same, but there must be a reason for the customer to choose the 2year option. It saves the customer $50 up front, plus you get the $100 New Every Two on a renewal towards a new phone.
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VZWCustServ

Jul 20, 2004, 4:24 PM
verizonrep said:
It saves the customer $50 up front, plus you get the $100 New Every Two on a renewal towards a new phone.


$70: $50 on the phone and $20 on the activation fee
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southwestcomm

Jul 20, 2004, 10:53 PM
Thanks for clarifying the obvious. Customers who want a better handset discount choose the 2-year option, not because they want to be locked in for two years.
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VZWCustServ

Jul 20, 2004, 4:22 PM
more of this "offer the same thing for less and I bet people would take it"

of course this is true

any time you offer the same for less or more for less it will be in higher demand

offer a big mac for 4 cents and more people would buy it than if you offered it for 4 dollors.

The point is, we would be offering even better discounts for 3 year contracts and maybe even bonus minutes. If people take a 2 year for a better discounts then they might take a 3 year for even better ones. It's the age old philosophy of offering more for more or less for less.
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RUFF1415

Jul 20, 2004, 6:27 PM
Flawless coverage?!?! 😲

That's news to me! 🙄
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VZWCustServ

Jul 20, 2004, 6:46 PM
MY vzw coverage is flawless. Except that 1 time in the backwoods of GA that I dropped a call when I was in a gully inbetween two hills.

Not to say that this is the case for everyone, but it's my experience.
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RUFF1415

Jul 20, 2004, 10:38 PM
Flawless (adj)- 1. Without blemish or imperfection 2. Without weakness or error

Um, I really doubt that your's or anyone's coverage is flawless (which coverage really refers to the areas of the nation that have service, which is DEFINITELY not flawless). I'm sorry to tell you this but although you may believe it, and I know Verizon may have brain-washed you into it, Verizon is not perfect. Its really impossible to have flawless coverage due to diffent terrain, atmospheric changes, and other obstacles such as buildings or trees. Once again, sorry to have to tell you, but it was for the best. 🙄
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VZWCustServ

Jul 18, 2004, 3:23 PM
I can say that, although I will never sign any more than a 1 year contract, the 3 year contract infomation is very beneficial for customers if they choose to take that route. After all, I see many people who don't bat an eye over signing a new 2 year agreement for 4 lines and this will give those customers an oportunity to commit for longer for added benefits. I think this will strike a chorde with our key customer base.

I mean, how many people actually do enough research to care about the various phone selection? I mean, if it mattered to a majority of the american public then phonescoop.com would be MUCH more popular. As it is, the vast amount of american cell phone users care only about price and signal strength. The 3 year cont...
(continues)
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kingfrog77

Jul 18, 2004, 3:40 PM
YOu are right about most people not really caring about picture phones and the such today. But it's tomorrow's customer you need to focus on. Kids love all that 'cool" stuff. KIds of years ago are the big Linux users today and as those kids become MIS managers they will buy the Linux and are doing so en mass today.

I think ANY technologgy is first learned by the youth and then brought into the mainstream when they reach positions of decision making power which can usually be as little as 5-10 year span of time.

I think Verizon should do research on new activations among 24 and below in single years and look for a trend. They're $400 deposit prohibits a lot of that age group I m sure . The results in the different age groups will dete...
(continues)
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phonepimp3376

Jul 18, 2004, 3:42 PM
LOL... remember Buster Douglas? Evander Holyfield? Easy there Iron Mike... lol
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dakz

Jul 18, 2004, 2:58 PM
Where exactly did this come from? I have seen no communication on this yet.
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RUFF1415

Jul 18, 2004, 11:05 PM
If and when Verizon puts this into action, would there be anything keeping Cingular from following suit? Just curious.
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VZWCustServ

Jul 18, 2004, 11:40 PM
RUFF1415 said:
If and when Verizon puts this into action, would there be anything keeping Cingular from following suit? Just curious.


Nothing, but cingular's customer base is a bit different than VZW's base. I wouldn't put it past cingular to offer the 3 year contract, but they are probably better off continuing the direction that they are going in instead of trying to just copy VZW.

As I see it, and this is open to debate, Service Providers can be rated on 5 areas:
Technology, Coverage, Customer Service, Price, and Phone Selection...

Both have good technology.

As it is, Cingular is top in price and phone selection and only needs to work on customer service rating and coverage.

VZW has tho...
(continues)
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Biggs

Jul 19, 2004, 7:54 PM
C'mon. You can't be serious. Where did your hear such a rumor?
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schnozejt

Jul 20, 2004, 2:08 AM
this has to be a rumor, i haven't heard of anything of this
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southwestcomm

Jul 20, 2004, 9:35 AM
Consumers resist two-year contracts as it is. I don't think a three-year contract will be received well.
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wb77379

Jul 20, 2004, 10:54 PM
I have to agree with you. I haven't heard anything about 3yr contracts and I check my company email every day. Fun rumor to debate though.
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schnozejt

Jul 20, 2004, 9:46 AM
VZWCustServ said:
The Good:

More discounts on the equipment!

Free bonus minutes for the term of the contract that make the plans even a better deal than Cingular's!

A better deal than even New Every 2!

The Unchanged:

Still no rollover...
Still no 7pm nights...

The Bad:

More complicated upgrade rules for customer service.
More oportunities for error in Point of Sale data entry.


why did you make this up?
if not, where did you hear of this?
...
VZWCustServ

Jul 20, 2004, 1:50 PM
schnozejt said:
why did you make this up?
if not, where did you hear of this?


Not making it up. When have I ever given anyone reason to think that I would make stuff up?

It's going to be tested in one small market to judge initial reaction. If it goes well, it might be offered in other markets.

It's in our resources here at customer service if you know where to look. I just don't have anything better to do that read EVERY new m&p release inbetween calls.
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Biggs

Jul 20, 2004, 5:30 PM
That is nice an' all, but aren't you afraid of Info Security coming down on you for releasing "proprietary Information". They refer to it as "Code of Conduct" and I've seen folx get fired for this from using this very site.
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VZWCustServ

Jul 20, 2004, 6:13 PM
I would if I had given out any information, but as it is I haven't said anything specific at all.
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Biggs

Jul 20, 2004, 6:55 PM
But you actually did when you said it was being tested in a market. That's not info that has been released outside the company, except in that one area.
I'm just lookin' out for ya cause I've seen the wa you try to help people out here.
Just be careful bud. 😉
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85percent

Jul 20, 2004, 7:15 PM
Biggs said:
But you actually did when you said it was being tested in a market. That's not info that has been released outside the company, except in that one area.
I'm just lookin' out for ya cause I've seen the wa you try to help people out here.
Just be careful bud. 😉


Sorry, ya lost me. What did I say was being tested in a market?

I usually only give information on these forums that I would tell customers. IMO, its the best way to not step over that fine line.

-Verizon Wireless Sales

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disturbed1

Jul 20, 2004, 2:35 PM
I don't think it'll fly. Most folks I know don't like signing up for two year agreements (unless of course it means they get the phone they want for free). I usually don't like more than a year agreement because I've moved so many times and travel around so much that I can never find a carrier that meets my home and away needs.

A lot happens in 3 years...I just don't see it working well, except for maybe VERY loyal customers or those with business agreements.
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Airwar

Jul 20, 2004, 10:36 PM
I agree, I have signed (2) two year agreements and in a few months will sign a third, only a strong incentive compels me to do this. Given a even choice I would not do it.
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Chapperal

Oct 25, 2006, 10:06 PM
I only do 1 year contracts! Than if I don't like them I'll just pay the lousy ETF, and be on my way.
As for dicounts on phones I don't really care about that either.
Even though I am a Verizon customer, and a cell company should prove to me that they are worth keeping.If I'm going to be stuck with same company that I may not like for 2 or 3 years.
Since 1996 I have always gone with the 1 tear contracts.
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jcoberg10

Oct 25, 2006, 10:15 PM
if you do a 1 year contract and cancel and pay the ETF it's the same as doing a 3 year and canceling and paying the ETF accept with the 3 year you prob got a better deal up front!?!? 🙄
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Chapperal

Oct 28, 2006, 6:34 PM
Once I am past my 1 year contract, if the following months the carrier service gets worse, I can dump them without having to pay the ETF.
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Rich Brome

Jul 21, 2004, 8:45 PM
I think it has more to do with number portability than with Cingular. 3-year contracts is something myself a lot of analysts predicted around the time number portability first took effect.

Of course, number portability didn't turn out to be the nasty monster some feared, but looking long-term, it's still something every carrier needs to be thinking about.
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disturbed1

Jul 21, 2004, 10:08 PM
I'm sorry, I'm still a bit new. What does number portability have to do with longer contracts? I understand that number portability took some time to get used to and get implemented, but I can't see how it would affect the length of the contracts. 🤭
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TheVZWMan

Jul 21, 2004, 10:19 PM
same thing with people outside of their service agreement basically...the service agreement will make them have to be pretty pissed to leave the company and cough up the etf
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Rich Brome

Jul 21, 2004, 10:32 PM
Number portability makes it easier to switch carriers. Longer contracts counter that by making it harder to switch.

Carriers naturally don't want to lose customers. Portability made it easier to leave; contracts keep you from doing that.
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wnrussell

Oct 25, 2006, 7:35 PM
Rich Brome said:
Number portability makes it easier to switch carriers. Longer contracts counter that by making it harder to switch.

Just since this thread was posted 2 years ago, hasn't EQUIPMENT PORTABILITY become as great an issue for switching carriers?

What good is it if you can take your number with you, if you can't move your phone?

A Canadian friend of mine used to roam the USA with a Bell Mobility E815, but when he wanted to move his phone to Verizon he was not allowed to.
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hybrid22

Oct 25, 2006, 10:30 PM
i dont believe it. where did you get your source? i dont see how signing someone up for a 3 year contract is a good business idea. i think 2 years is the perfect way to go in the first place.
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Yellowrose

Oct 29, 2006, 12:39 AM
I personnally have not seen any communication either regarding a 3 year contract.. While I see many accounts on a daily basis that are 10-15 yrs, I think something should be offered or something for a 3 yr contract.. Sometimes it can take someone time to feel comfortable as far as staying with a particular company. 😲 (Trying to understand the logic behind a 3 yr.. don't believe it would be a threat from Cingular?!!) Last time I knew wasnt much of a threat... If someone wants out that bad they will ususally pay the etf rather it is 2 or 3 yrs... (I don't personally like a 3 yr concept.)
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Yellowrose

Oct 29, 2006, 12:54 AM
Ok, just ck'd the dates on post, 2004! Please disregard my prior post!! 🤣
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