Verizon CFO: Verizon Wireless sees boost in subscriber count due to new unlimited calling plan

You don’t say. Lowering the price on the flat-rate, unlimited calling plan caused  an up-swing in new-subscriber growth?

It seems obvious that more subscribers would opt to pay a bit more per month for the all-you-can-eat calling plan from Verizon (NYSE: VZ), but investors weren’t as convinced. Following the industry change-up that saw all the major (and a few regional) carriers adopting lower-price unlimited calling plans, stocks went downhill. So, Verizon CFO Doreen Toben announced today (presumably to woo investors back to Verizon’s good side) that the $100 unlimited calling plan available on Verizon Wireless has sparked increased subscriber growth.

At the Bear Stearns Media Conference in Palm (NSDQ: PALM) Beach, FL, Toben stated that, “It doesn’t take that many more of the $79.99 folks to go up to $99.99 to offset” the loss in revenue from customers that were paying more than $100 for the unlimited calling plan.

Interestingly, the boost in subscriber counts could indicate that Verizon is taking subscribers away from other carriers that have matched or beaten the Verizon offer.

While it seems obvious that a lower-priced unlimited calling plan would attract new business, the issue isn’t that clear-cut. Sprint (NYSE: S)’s CEO publicly admitted that the move to undercut the competition with their “Simply Everything” plan wasn’t a silver bullet to solve the company’s problems – even if Verizon seems to have done well for themselves. Time will tell if other carriers benefit from their unlimited calling plan offers.

[Via: Cellular News]