The article mentions that Verizon Wireless will soon begin to prorate its early termination fees -- a really big deal in my opinion. These fees are universally despised. Dr. Rogers goes on to say the industry will no doubt be forced to follow. In case you still get by with that kitchen rotary phone and have no experience dealing with wireless carriers, these fees are the way a cellular carrier locks customers in and ensures they are able to profit enough from the customer to generally make up for the subsidized equipment they offer at the inception of a contract.
Many think the reason Verizon has decided to change the way they operate is because their churn rate is as much as half of others in the industry. In addition the article points out that the phone business is going away from being fee-based and moving towards being relationship-based. To support this comment is the fact that Verizon has also made some other changes worth noting. For example, the wireless carrier will guarantee that customers who pay their bills online will receive emails notifying them if a price plan better matches their usage needs.
What's this -- a telecom service provider helping its customers and proactively? Wow -- this is huge news. To be honest there aren't too many industries where a company will proactively find ways for you to spend less with them.
In addition, customers will now pay no more than $50 for a replacement phone purchased outside of the manufacturer's warranty and can choose to have Verizon store their phone contact list on its network so that it is transferable. The company's most valuable customers (with a $49.99 or higher price plan) can upgrade their primary handset after 12 months.
What's that? A new and exciting enhanced service? Verizon Wireless continues to impress me. People will love the ability to store their contact list with the service provider so they don't have to worry about losing it. Everybody except possibly Paris Hilton that is. After years of complaining about Verizon Wireless service levels and their lack of attention to having cutting edge devices, they seem to have fixed both problems -- can you say Q? -- And at the same time are charging ahead, setting the pace for better customer service in the carrier space.