Author: Kevin Donoghue, CEO - Telesoft
Verizon Wireless has finally broken down and begun to offer consumers a contract buyout offer in response to aggressive competitor marketing campaigns, such as T-Mobile’s momentum from its un-carrier promotions. The third quarter results posted by carriers for post-paid customers are revealing:
- T-Mobile US: +843k
- Verizon: +430k
- Sprint: +38k
- AT&T: -545k (lost subscribers)
Now Verizon has responded with its “No Regrets” promotion where it will pay a bounty of up to $650 for new subscribers to pay off either the rest of their wireless contract or the remaining device payments they owe to their current carrier. Verizon is promoting its program as a way for customers who made the “mistake” of signing up with a lesser wireless network to correct the error of their ways by switching back to Big Red.
This new move by Verizon illustrates how carriers will not offer big discounts to existing customers unless they believe that their business is at risk. While enterprise customers may have been left out of recent consumer promotions, carriers are now aggressively searching for new business. Large blocks of new enterprise business will appeal to carrier reps that are paid for new business.
Enterprises that are proactive and have telecom inventory organized are best positioned to take advantage of this new competitive environment. Telecom managers that have Wireless Expense Management programs with accurate inventory and records for when contracts are expiring are best positioned to negotiate for better deals. It is even possible to get reduced charges for existing business, if the incumbent mobile providers see that their business is at risk. These organizations will experience some of the same aggressive attempts to retain their business.Tags: Managed Mobility Services