Verizon Communications Inc. (VZ) Won’t Chase T-Mobile US Inc (TMUS) Switchers

Verizon Communications Inc. (NYSE:VZ) has admitted that it won’t lower its prices just to chase customers who are going to T-Mobile US Inc (NYSE:TMUS) primarily because of price.

In an interview with CNET, Verizon Communications Inc. (NYSE:VZ) Chief Financial Officer Fran Shammo shot down the idea that the carrier will also introduce a data rollover plan such as the one T-Mobile US Inc (NYSE:TMUS) introduced in December.

As part of the T-Mobile US Inc (NYSE:TMUS) rollover scheme, customers who have unused data on their plans will be able to use that data on top of their next billing cycle’s allotment. AT&T Inc. (NYSE:T) has also introduced a competing data rollover scheme.

“We’re a leader, not a follower,” Shammo is quoted as saying. “We did not go to places where we did not financially want to go to save a customer.”

Verizon Communications Inc. (NYSE:VZ) is probably banking on their comfortable position against their rivals. The company is making money and it won’t easily sacrifice revenue and margins just to compete.

“And there’s going to be certain customers who leave us for price, and we are just not going to compete with that because it doesn’t make financial sense for us to do that,” Shammo added.

So, at least for now, one should not expect a data rollover plan from Verizon Communications Inc. (NYSE:VZ).

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T-Mobile US Inc (NYSE:TMUS) unveiled their data rollover plan called “Data Stash” in December. It’s available to the company’s Simple Choice subscribers who have additional 4G LTE for their plan (at least 3GB for smartphones and 1GB for tablets each month).

For eligible customers, an initial 10GB pool has been given by the wireless carrier and once that is depleted, the company will tally unused data each month to add to the “Data Stash”. No limit has been placed on the amount of data one can rollover, but the data should be consumed within a year.

Warren Buffett’s Berkshire Hathaway owned just over 15 million Verizon Communications Inc. (NYSE:VZ) shares by the end of September. John Paulson’s Paulson & Co also owned just over 15 million T-Mobile US Inc (NYSE:TMUS) shares by the end of the said month.