- Lowell McAdamCEO
Rescind 45% Increases in Verizon Wireless Warranty & 14.5% Insurance
A 45% increase in Cellular Telephone Extended Warranty Coverage and a 14.5% Increase in what is basically insurance (and most insurance has been going down, not up) is totally unjustified...they don't need any increases. Verizon Wireless is "self insuring" the warranty coverage, therefore all proceeds from the increase go to thei own bottom line. Their annual report does not indicate that Verizon Wireless has been negatively impacted by warranty servicing. The Wireless Phone Protection program (Insurance Coverage) is underwritten by Liberty Mutual Insurance Co., and administered by Asurion Insurance Services, Inc. With the huge profitability they have seen from the sales of "Smart Phones", if they are having problems in the cost of servicing basic warranty coverage, they need to put the burden upon the manufacturers, i.e., their largest suppliers Apple and Samsung (who have also seen huge profits in their own bottom lines due to the popularity of "Smart Phones"). The monthly charge from Verizon for the usage of a "smart phone" is double that of what a regular cell phone costs...so they are already more than covering any related costs.
Verizon Wireless had huge profits in 2012, and thes (2) increases in the Extended Waranty Coverage and the Insurance Coverage will generate an approximate $2 Billion additonal Dollars in Revenue, that will only go to increasing their profitability.
We pay more than our fair share towards their bottom line profitability, and since they had a flat increase in capital expenditures of $16.2 Billion in 2012 vs $16.2 Billion in 2011 and a decrease from the $16.5 Billion spent in 2010, they certainly don't need any funding increase. Their Annual Report indicates that they had a 8.4% growth in wireless retail service revenue.
Their total Wireless Revenue increased from $70.2 Billion in 2011 to $75.9 Billion in 2012.
They don't "NEED" this increase...it's only corporate greed...they publish that it's only $1.01 per month per line increase...but that's huge...it represents an approximate $2,000,000,000.00 ($2 Billion) in Revenue, bottom line profit increase and that's OBSCENE !
Please rescind the 45% Increase in Verizon Wireless Warranty Coverage & 14.5% Insurance Increase in the Wireless Phone Protection (Asurion) coverage. Your company is only looking to "pad" your bottom line at the expense of your customers. If you truly needed the increase that would be a different story...you really don't need the increase. And as far as Asurion's increase..find a different insurance carrier...Liberty Mutual should be decreasing their rates, like every other Insurance Company.
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