Verizon’s Month-to-Month Plan – A Smart Move in Tough Times

Competition is behind Verizon’s new cell service plan. However, I believe the company is also taking a bold and smart step towards reaching deeper into that ever growing sector of the economy that lives on cash.

With credit a huge problem, consumers and businesses are reminded once more that CASH is KING.

Verizon’s plan to offer month-to-month no contract cell service is simply brilliant. The carrier has dusted off an old idea and is going back to fundamentals.

The old telephone company used to deal with millions of customers who simply paid for their old wireline service using cash. These same customers lived from month-to-month. In the old days, customers literally lived from month-to-month. Now that wireless is prevalent, the carrier is going back to its basic customer service roots and doing the same thing with wireless. This approach to providing service enabled the telephone company to reach into the deepest parts of the community and pull cash in from even the most distressed sectors of the community. This approach does not support high margins but it does generate cash and profit.

Verizon’s actions harkens back to those good old days of “SERVICE FIRST”!

Verizon’s actions are also a solid way of continuing to generate cash during this recession bordering on a depression. I am keeping my fingers crossed. I take my hat off to Verizon for being so darn-tooting smart.