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Verizon CEO says he would happily drop cell phone contracts

Published Apr 4th, 2013 2:05PM EDT
Verizon Service Contracts

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All eyes are on T-Mobile as the carrier embarks on a new journey that will eliminate its standard cell phone service contracts in favor of a more transparent hardware financing model. U.S. carriers in particular will be watching this story unfold quite closely, and the chief executive of the nation’s top carrier recently said he would happily drop the cell phone contract model if Verizon Wireless subscribers express interest in this new model en masse.

“I’m happy when I see something different tried,” Verizon (VZ) CEO Lowell McAdam told reporters on Wednesday, CNET reported. “We can react quickly to consumers’ shifting needs.” McAdam went on to say that he would follow T-Mobile’s lead if customers showed interest in similar contract-free service options.

T-Mobile’s new model allows customers to purchase a phone for a small up-front fee and then continue to make monthly payments toward the balance. While subscribers no longer need to sign traditional service contracts, they will still be responsible for the full value of the cell phone in the event service is terminated before the handset is fully paid for.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.