Verizon May Offer Phone Service That Doesn't Allow Outbound Calling
What value is there in a telephone that doesn’t allow you to make any phone calls?
Verizon’s answer: $5 a month.
The telco is considering a landline service at that price point that would allow customers to receive calls, but not place them (except for 911 and Verizon customer service), according to the Wall Street Journal. A $10/month plan would allow “limited local calling.” [Reuters confirmed the WSJ story.]
These services, it goes without saying, are not exactly a high-margin play. They’re a last-ditch defensive maneuver. Like other telcos, the company has been watch landlines steadily evaporating: Verizon lost 670,000 in Q4.
The idea with the $5/month call-me-I-won’t-call-you plan: With so many consumers dropping landlines for wireless phone, it would be the final attempt to get something — anything — from customers threatening to drop their phone service.
Verizon’s ulterior motive, though, is to hold on to high-speed Internet users, so they don’t defect to cable (which by the way is now starting to offer speeds that rival FiOS) on the theory that multi-service subs are less likely to churn.
As a customer-retention tool, though, it does seem an odd proposition on its face: So you’re unhappy paying $40 a month or more for your Verizon phone service? Why not pay just $5 a month — and get far less than you ever imagined possible?
POTS clarification commented:
Certain elements of the POTS network run on battery backup as well. During prolonged outages (6+ hours) POTS can go out too. COs are typically equipped with 24-hour backup generators.
seeowwtech commented:
voip goes out during power outages when battery backups run out of power. cable tv nodes and amplifiers run out of power eventually whereas old copper has power from central office
actually commented:
re: \”greatidea\” - Actually you\’re wrong: my VOIP works when the power goes out because I have a battery backup.
greatidea commented:
this is good for emergencies. voip doesnt work during power outages and e911 on it gets routed to wrong city
Miles commented:
I would look into now, I now try to use my VZN landline only for receiving calls anyway. Use Vonage as main phone and need both for when I work from home office.
jack commented:
Let me tell why this is a good idea. I curently live in a condo community in LA and I only need a phone so that guests can ring thru form the entry door when they arrive. TW will onl sell me a lousy package that costs $40 a month. Unless I\’m willing to not enable guests to ring thru I\’m screwed.
jack
albert camus commented:
Boy, i would never expect an old RBOC to even consider bundling to take adavantage of 80 years CAPEX, brand recognition, thier wholly owned companies. Does not make sense to capitalize on their own assets. Must be another CEO tkaing HUGE stock gifts and refusing his \”salary\”.
ridiculous! commented:
stupid idea for an overpriced, dead-end technology. if RBOCs want to keep telephone customers they should bite the bullet should offer $10-$15 *unlimited calling* …
