What Is Keeping Verizon From Being No. 1? Hint: Terrible Phones!
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Here in the U.S. we have all seen the Verizon advertisements on TV, which shows a group of Verizon people following around a user. No matter where the user goes there is always a Verizon connection even when someone says that the area is a dead zone. For the most part this is true since Verizon, after its acquisition of Alltel, does appear to have the largest network. So what keeps the company from being No. 1?
Some are saying it is its terrible phone offerings. Compared to the Apple iPhone, Verizon is struggling in trying to offer a comparable phone with its superb service. In a current news article it also states that:
It’s a puzzling situation for Verizon. The wireless carrier has had the most customers of any cellular operator in the country since its 2008 acquisition of Alltel, and it’s widely regarded as having the largest network coverage area. So the fact that it can’t offer its customers better smartphones is a bit of a mystery.
Verizon’s extremely conservative approach to new handsets, the company’s long and rigorous testing procedures and its emphasis on the network rather than the phone has created a portfolio that’s a complete buzz kill, say experts.
“Verizon doesn’t have too many options,” says Michael Mace, a former executive with Palm and Apple who runs a strategy and marketing consulting firm called Rubicon Consulting. “They can’t get the iPhone right now and they can’t take Nokia devices and start promoting them. All they can do all they can do is push the BlackBerry as hard as they can and hope for a new Motorola phone.” (Nokia largely makes GSM phones, which won’t work on Verizon’s CDMA network, though the Finnish phone manufacturer has created a select few devices to run on the Verizon network.)
Not surprisingly, Verizon spokesperson Brenda Raney says the carrier would rather focus on its network than on the gadgets that use it.
“Keep in mind that for Verizon Wireless, it isn’t so much about the device as it is about the delivery,” she says. “We have the nation’s largest 3G network so when we offer devices on our network, customers can be assured that they will deliver as promised.”
So what is important to you? Good, reliable service? Or the style of phone you buy?
Comments welcome.
It’s pretty clear that Verizon didn’t deliberately choose to be the boring-but-predictable, safe but unexciting choice. In some ways, it simply got overtaken by the technology.
8 Comments
the oracle
September 17th, 2009
at 11:41am
As someone who sold mobile pones for a few years, I’ve seen how the younger set will totally abandon good service for ‘cool phones’.
When I was with Radio Shack, I used to size up a customer almost immediately with a couple of questions. Being the direct type, I would ask what was most important.
9 of 10 times, if the customer was over 30, it was that speaking, and being heard by the other side, and vice versa, was the main prerequisite. They were Verizon customers. If they thought that the phone needed to have extra gadgetry, or impress their friends, call quality was secondary, then they were Sprint customers.
I still fail to see why many don’t recognize that. My children will test their friends that have Verizon, so they could speak all day and night for no extra charge, but they insist upon sending texts. My daughter picked a phone that has a full keyboard, and it has more in common with my old Motorola 2-way pager than a phone.
For even those who buy iPhones, and their clones, it is still a phone, first, and foremost and if it is not, perhaps another choice of device, without voice capabilities, would be more their speed.
Not sure about Verizon where you live (phone selection varies by area of thee country - their network is not as homogenous as you might think), but here, in SoCal, the choices are very wide, with over 40 phones to choose from. For smart phones, there are still around 10 - unless you must have an iPhone they seem to have it covered.
Ron Schenone
September 17th, 2009
at 12:24pm
Heh Marc,
Good points. I believe that you are correct. A fancy phone is more important than good service. LOL
Bruce
September 17th, 2009
at 3:05pm
My wife and I switched from Nextel to Verizon in July. We live in a rural area and Nextel was the only game in town when we first moved out here. Verizon built a new tower just to the east of us so we ditched dreadful Nextel. We were like kids in a candy store with all the phones Verizon had to offer compared to the dreadful things Nextel pushed at us. We each settled on an LG ENv Touch. It hasa touch screen, a 3.2 megapixel camera, a great MP3 player, a QWERTY keyboard, dual screens on the flip, has a scheduler/calendar, browses the internet, has a micro SD slot for up to a 16 gig card, great battery life (user replaceable) and many other features. What’s not to love about this phone? Coming from Nexhell to Verizon and having such a cool phone has been a very positive experience for us. Now … could they do something about those fees……
cirian75
September 17th, 2009
at 4:38pm
They should look at going GSM. like 99% the rest of the world
Ron Schenone
September 17th, 2009
at 4:50pm
Thanks for the comments and info.
the oracle
September 18th, 2009
at 12:28am
@ cirian75, the figures are not 99%, for GSM, and even so, CDMA is superior, both in theory and in practice,
As someone who sold T-Mobile for about 2 years, I know where the pitfalls of GSM are.
By the way, most of the rest of the world is GSM not because of inherent superiority, but because of inherent parsimony. GSM can be implemented freely, because there are no licensing fees, whereas CDMA fees are all paid to Qualcomm, holder of the CDMA patents.
Ron Schenone
September 18th, 2009
at 4:12am
Thanks Marc for sharing your expertise with us. It is appreciated.
Johannes S.
September 19th, 2009
at 3:07am
Well, I happen to live in Europe, where the situation is a bit different. Here, people buy phones separately and choose the best carrier available. Well, unless you get one of those carrier-locked phones, for example, the iPhone.