Verizon Wireless has not been making the best of decisions in the past few months and one only has to look at the phones that they are not commenting on when there is a large consumer demand for those phones, such as the Galaxy Nexus. That phone was expected to be released in early October, but Verizon remained silent and it finally arrived in late December. There are other phones like this from Verizon and the latest is the Droid 4 which was expected to arrive on the 22nd and is now delayed to some time in February. No comment from Verizon. Now they are proposing to charge a $2 convenience fee to consumers which resulted in a large backlash from customers forcing them to reverse the idea of a $2 charge.
In reality, the decision to reverse the fee was more than likely the talk of the FCC deciding to investigate Verizon for the decision to do this. It did not take more than a day for Verizon to get the message that this was a bad idea. The intent of the fee was to bring money to Verizon where people were making their monthly payments using their smart phone or the Verizon Wireless web site.
The $2 fee was supposed to go into effect on Jan. 15 and be charged to customers each time they paid their bills with a credit or debit card — unless that customer was enrolled in automatic bill-paying options that can charge credit and debit cards or withdraw money directly from bank accounts.
You would think that Verizon would have realized that this was a bad idea before they made the announcement on Thursday and by Friday they had to announce that they had made a mistake by putting this fee out there. It reminds one of the Netflix reversal of their decision to increase fees and then the decision to split up the DVD and streaming areas separately. The backlash that they received is still impacting the company as people chose to take their business elsewhere.
Verizon could have faced the same problems had they implemented this new fee immediately and then had to reverse it. The purpose of the fee was to be able to offset the costs associated with processing of debit and credit card charges from those who handle those transaction. Verizon should not have these kind of problems given the size of the company and can surely come up with some other way to provide for revenue.
They have removed the unlimited data plans and with the tiered data plans are more than likely getting more revenue from data usage than a year ago. They have been expanding their 4G LTE network far in advance of the work that AT&T is doing and that advantage should result in customers coming to Verizon for the faster service. The recent successes for recent phone releases is adding to the bottom line for the company.
Verizon’s recent problems with outages on their new 4G LTE network created a lot of bad publicity and this latest action has created even more bad publicity for them.