Verizon Could Follow T-Mobile, Drop Cell Phone Contracts

Following T-Mobile's announcement that it will start offering Apple's iPhone on April 12 without contracts, Verizon CEO Lowell McAdam said his company could consider doing the same. He said changing to T-Mobile's no contract and no subsidy pricing model wouldn't be difficult, but the carrier is waiting to see how consumers respond.

Verizon: We can be like T-MobileVerizon: We can be like T-Mobile

Mr. McAdam said, "I'm happy when I see something different tried," according to CNET.

T-Mobile is offering the iPhone as part of its Uncarrier program that does away with subsidized phone prices in favor of monthly financing, and drops the two-year contract requirements that are standard in the industry today. Customers can get an iPhone 5 for US$99 down and $20 a month, and their monthly bill drops by $20 once the phone is paid off.
Mr. McAdam isn't saying when Verizon would consider mirroring T-Mobile's plan, but apparently could make the change without much lead time. "We can react quickly to consumers' shifting needs," he said.