DUCATI8511 wrote: Not a very good argument...verizon makes no more money off of new customers than off me. If both are offered same discount on the same phone, where is additional revenue.

The "additional" revenue comes from the "new" customer going from paying Verizon $0/month to $2x/month, an INCREASE in revenue of $2x/month. If Verizon were to give you a "free" phone, their revenue would go from $x/month to $x/month, NO increase in revenue. Since the VAST majority of Verizon customers do not need an enticement to stay with a service with which they are happy, they see no benefit in offering a perk for which they will receive NO additional revenue. Verizon used to give reduced price phone when you signed a 2 yr service contract. Since they no longer have 2 yr service contracts, there is no incentive to Verizon to offer you a reduced price phone.

For the FEW people who actually leave for another carrier and will be in the exact same predicament they are in now when they go to purchase their NEXT phone, they are just as likely to switch back to Verizon as they are to stay with the new provider since they would not be able to get ANOTHER free phone at that time.

The benefit of giving NEW customers a free phone is that for 100 NEW customers getting free phones, they will receive $200x(BOGO means 2 lines of new revenue) of new revenue. With their practice of not giving 100 existing customers free phones, they MAY see a drop in revenue from $100x of existing revenue down to $99x of continuing revenue, so instead of receiving $5000/month of revenue from those 100 customers they MAY only see $4950/month if 1 disgruntled customer leaves while saving $80,000 in the cost of 100 new phones. If the average customer pays on average $50/line that would be $10000/month(200 x $50/month) of NEW revenue vs a $50 drop in revenue if they don't provide those free phones to existing customers who are NOT willing to open a new line of service. It is not hard to see which of the 2 options is better for the bottom line at Verizon.

Verizon does not even receive the same benefit by offering this to existing customers as they do by offering it to new customers. With BOGO offers, existing customers would only be providing 100 new lines of service for every 100 free phones given out. With new customers, Verizon would be getting 200 new lines of service for every 100 free phone given out. Double the benefit to Verizon for new customers vs existing customers.