Verizon CEO Considers Dropping Contracts

T-Mobile‘s recent decision to drop contracts and phone subsidies has led Verizon Wireless CEO Lowell McAdam to consider the same approach.

“I’m happy when I see something different tried,” McAdam said, according to a CNET article. “We can react quickly to consumers’ shifting needs.”

AT&T CEO Randall Stephenson has also expressed interest in making consumers pay for their own smartphones for a lower rate.

T-Mobile’s new plan received mixed reactions. It allows consumers to pay a smaller upfront fee for their phone in place of a two-year contract, but they have to pay for the full price of the device without a subsidy. That being said, T-Mobile offers payment plans that allow you to spread the cost of the handset out over a two-year period if you so choose.

McAdam said Verizon could easily change its model to eliminate contracts and he will follow suit if customers show an interest in this new plan.