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Phone companies are struggling to deal with the high cost of the iPhone. An analyst asked Verizon Communications Inc.'s chief financial officer, Fran Shammo, about the issue on Thursday.
Shammo suggested that Verizon will be supportive of Microsoft's revamped phone software, already being pushed heavily by phone maker Nokia Corp., as an alternative alongside the iPhone and phones running Google Inc.'s Android software.
QUESTION: We have been getting a lot of questions about your ability to control iPhone subsidies. It seems like the way you control cots on this is raising upgrade fees and pushing back on timing rather than cutting down on the actual subsidy of the device. Is there a level of control you have on the subsidies over time? Are you pretty much stuck with the way things are priced today?
RESPONSE: We manage handset by handset and we manage our subsidy ... This is just a nature of this business, that has grown from the beginning of the industry, that we subsidize handsets.
I do think, though, that it is important that there is a third ecosystem that's brought into the mix here, and we are fully supportive of that with Microsoft. We created the Android platform from the beginning and it is an incredible platform today ... We're looking to do the same thing with a third ecosystem.