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Verizon Wireless Offers No Contract Option

Boot Camp feature for Monday, September 29, 2008

A new, no contract option from Verizon Wireless. Bloomberg Boot Camp, a report on today's technology. Lots of mobile phone users aren't thrilled with the idea of being locked into contracts with carriers. Verizon Wireless is now allowing customers...to pay full price for phones...or bring their own...assuming that it works on Verizon's network.....and use its monthly service plans without a long term contract. Pricing on plans is typically more attractive than pre-paid service. Verizon Wireless has had the lowest monthly turnover of customers of all the U.S. carriers of late. But will keeping customers be more difficult...when more consumers, in a tough economy, are looking for ways to save money? Verizon Wireless CEO Lowell McAdam...

"For us, we have never been the low cost provider. We have a premium quality service. And we're very careful frankly about the quality of customer that we bring on. We don't chase pre-paid customers. We don't chase the sub-prime customers. We're a strong, credit qualified post-pay company. And customers like that don't react to little change in the economy. So we, frankly, are not seeing the impact of the economy on our base at all. We continue to see low churn levels because customers love the network. They love the customer service that we give them and they stay with us for a long period of time."

Verizon Wireless CEO Lowell McAdam. Bloomberg Boot Camp, I'm Fred Fishkin.