Deployment of VZ Edge expected to have no affect on financial results
Following both the release of its new "Verizon Edge" upgrade plans and Q2 2013 financial results, Verizon CFO Fran Shammo had some interesting statements regarding the new upgrade scheme. When asked if there was any plan to change Verizon's service pricing to reflect the new off-contract and unsubsidized "Edge" upgrades, Shammo clearly stated "We will not touch our service pricing." That's a big disappointing to many of us who have done the rough math on VZ Edge, which shows how much more expensive it will be for customers. T-Mobile, by contrast, reduced the cost of its service plans to reflect the subsidy component being moved to an "Equipment Installment Plan".
Further, Shammo does not expect many customers to move over to the new VZ Edge plan, expecting them to continue along with the two-year contract and subsidized phone model. So few customers are expected to try the new system when it launches August 25th that it will have no impact on Verizon's earnings.