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Verizon Shows How to Make Money by Cutting Prices

April 29, 2008
by Saul Hansell
Blogger, New York Times Bits

Saul Hansell

If I see the balding guy in the Verizon commercial marching in front of the New Orleans Hard Hat Band one more time, I’m going to pull my FiOS TV cable out of the wall. But when it released financial results for the first quarter Monday, Verizon said this ad and the $99 unlimited talk plan it advertises were working well for the company. On a conference call with investors, the company said 13% of its new customers are signing up for the $99 plan, according to an account by the Associated Press. Previously, only 4% of its customers chose plans with bundles of minutes that cost $99 or more.

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