than we do. And then our customers leave us for them. We should be selling it for less not more. Does not seem sustainable.
17 replies (most recent on top)
MVNO is a pox on the company.
"The Verizon Network" doesn't exist anymore. It is the Visible, Tracfone, Comcast..... Network that Verizon customers and shareholders funded and paid for. Now it is for rent to anyone for any price.
The reseller sells it for less than our retail rate we’d charge to a subscriber for approaching us directly, yes. But we still make profit on selling to wholesale customers.
Also, we don’t host features for the wholesalers like voicemail, call forwarding, etc.
Further, such as with Wireless, an MVNO is not allowed to roam as retail VZW customers are (is that still a thing since 3G is gone?)
I'm gonna guess the Slow Smitty may have an S in their initial and that wireless is involved. That slow Smitty was definitely pushing network as a service.
I was able to quickly figure out who Eddy Engineering is, but who the heck is Slow Smitty lmao
I don’t think the resellers get the same level of service that Verizon customers do. I’ve been surprised a few times when my Visible phone told me” all circuits are busy” , and couldn’t complete the call.What is this 1950???!
Greshams Law: "the cheap drives out the dear."
Having a wireless device on The Verizon Network used to be the cause of bragging rights and why people did not mind paying a little more. But when Comcast or Optimum sells the same service for less, offers better customer service, and can package it with their own Internet - then why should anyone pay top dollar to Verizon to get less for more?
The wholesalers ki-led the cachet that allowed VZ to charge its subs more. How are you going to lure those high-valued postpaid subs back? And whose idea was it to trade high-value and reliable post-paid with low-value sketchier prepaid customers?
This was a terrible strategy and has hobbled the golden goose. Eddie Engineering tried to argue this point with Slow Smitty, but Eddie and the stockholders lost, and our cable competitors and low rent prepaids won.
It is a very profitable model because there is little overhead. No customer service, no sales, no stores, no training, no inventory, less HR. It may have a lower per line cost but it doesn't have the expense built in. Plus resellers buy large blocks at a time so V gets a large amount of revenue no matter how well the reseller does.
@1efb+1n486UlS bad idea. Now you have nothing to differentiate your service, especially as VZ is skimping on customer service while the 'wholesalers' are increasing and protecting themselves with SLAs. The "Magic Sauce" was the exclusivity, investment, and cachet of the Network and service. Now we have neither. Why not use Visible or Comcast?
Everyone associated with that bonehead move needs to be fired unceremoniously. Just like the simpkins who sold off the Towers and data centers. and swapped into useless mm wave 5G and out of more efficient fiber and LMDS. There needs to be an entire house clearing.
It's wholesaling. If the customers aren't using our customer service, or getting any support from us then we should be able to make the same margins at a cheaper price wholesaled. So you could get Verizon service with great customer service, stores that you could stop into for help etc, or you could get just the network and the presumably cr-ppy customer service of a prepaid company.
The problem is we didn't maintain any of the premium customer service and tried to drive everyone to a cr-ppy app and offshored reps. Turned out talented sales and customer service people in stores into nothing more than clerks. Now there is no reason to pay extra. Typical lack of a comprehensive strategy and lack of a plan to execute it.
Almost as stuupid as selling Netflix and Disney subscriptions at cost
That's how negative margin circuits happen. Somone should tell Hans that we are supposed to do this profitably.
Keep them on the network. Bottom line.......
This is nonsense as everyone who survived the CLEC era can tell you. This was about slow Smitty (aka 'Nice Smitty' from Wireless) and his selling of Network As A Service insanity. Eddie Engineering always thought that he was nutz and Slow Smitty keeps proving him right. Ed has no bedside manner but is always right regarding the Network.
PS Smart Smitty builds networks and teams, unlike slow Smitty who sells off the pieces and rents the rest out on the cheap and wonders why subs are fleeing.
https://en.wikipedia.org/wiki/Telecommunications_Act_of_1996
T-Mobile and AT&T are able to keep current customers and gain new customers following the same law. What is VZ doing wrong
So OP, this sounds like you don't know what regulated means or what the Telecommunications Act did. Read up before making a statement that Verizon has no control over.
https://en.wikipedia.org/wiki/Telecommunications_Act_of_1996
This is the bad Smitty's doing not the engineering Smitty. Biggest strategic mistake effer. Network As A Service is BS. Pi-ping out what was once the absolute most smoking Network in the Nation to the lowest prepaid subscribers and our closest cable competition. People should have really been fired for this. They still should. And Hans? Really? What bone head pick!
Clearly, not a sustainable business model. The bottom line is loss of revenue. This is what happens when VZ operates from a position of weakness and not a position of strength. The number of days to be profitable are very limited. VZ will and must declare bankruptcy in the near future.