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Verizon CEO: video will make unlimited data plans unsustainable

updated 01:37 pm EDT, Tue September 24, 2013

Executive dismisses trying to lead on price

Verizon CEO Lowell McAdam has downplayed the competition from unlimited data plans still offered by competitors, arguing that such business models will prove unsustainable. Speaking at an investor conference, the executive suggested that the rising popularity of video services will force other carriers to reconsider their unlimited plans due to bandwidth limitations.

"With unlimited, it's the physics that breaks it," McAdam said, as quoted by CNET. "If you allow unlimited usage, you just run out of gas."

The company last year put an end to its unlimited data plans, forcing customers to adopt for one of several tiered options that start at $30 for 2GB of data. Existing subscribers with unlimited plans can keep their current contracts, however they cannot receive a subsidized price on a new device without stepping down to the tiered plans.

McAdam suggests Verizon will "never lead on price," downplaying the new contract options offered by competitors. "We've got [4G LTE network] footprint we like. We're going to press that advantage."

The executive also commented on two of the struggling players in the handset market: BlackBerry and Nokia. He hopes the former will benefit from going private, while the latter may produce better hardware and software following the acquisition by Microsoft.



By Electronista Staff
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