Tuesday, 21 June 2011 19:55
Written by Kevin May
Since yesterday, reports have been flying in every direction that Verizon Wireless will do away with their single-price unlimited data plan it currently sells to its smartphone customers at $30 / month and reign in a tiered data plan.
Rumors are that sometime in July, Verizon will implement the change. Starting for $30, subscribers can get 2Gb of data a month. We all remember when AT&T switched over to a usage-based plan, but that one only runs AT&T customers $25 / mo for 2Gb. The $5 / mo difference might not be enough for me to jump from the Verizon ship, but there is more.
It's rumored that Verizon will sell a 5 Gb plan for $50 and a 10 Gb plan for $80, but this is not confirmed in any official format. This is in contrast to AT&T's $10 per additional Gb you pay. Over large data usage (say in the 8-10 Gb / month range) Verizon is clearly the better deal, as at 10 Gb of usage on AT&T, you would end up with a data bill at the end of the month for $105 vs $80 for Verizon.
However, as is pointed out in the following internal Verizon Wireless memo, "the vast majority of our customers will be able to enjoy their typical level of data consumption for the same value that they outlay today." Translation : Most people won't notice a difference in there bill. They will continue to spend $5.00 more than their AT&T using piers for that under 2 Gb of data usage.
Just to note, this is regardless of 3G or 4G LTE usage, so if you are thinking of upgrading to a 4G device on Verizon and the data plan is the lynch-pin in your decision making process, this is a dead issue.
Frankly, I'm not surprised. Once AT&T phased out the unlimited data plan, all the other major wireless carriers were likely to follow suit. T-Mobile's customers should enjoy their unlimited data while it lasts, as once the federal government approves AT&T's proposed takeover, they will succumb as well.
The only other question that comes to mind is "how does this affect the current Verizon Wireless data customer?" We don't know. My personal past experience may or may not help here, but years ago, when cell phones still had monochrome LCD screens, I purchased a 500 minute / month plan. I held on to this plan for 4 years after it was eliminated from Verizon's menu of options. How? I just didn't change my plan, but that means that if you are a current Verizon customer and there is some sort of option you might want down the road and don't have it now, or you might want to change plans and upgrade your minutes, do it now. It may end up being for naught, but if Verizon does choose to grandfather their current unlimited data customers, it would have been worth it. If not, well you can always switch your plan back.
As promised, here is the text of the aforementioned internal Verizon memo. Thanks endgadget.
Data Pricing Evolution...The Present
Our legacy data pricing structure was designed to address a somewhat different customer need profile than what we are seeing and can expect in the future.
Consider this. Data usage has more than doubled over the last three years. Consumers and business users alike are doing more and more with their mobile devices. The notion of "send and end" has migrated to "managing multiple aspects of one's lifestyle through mobility." Whether it's social media (85%+ of Smartphone users), mobile internet (88%+ of Smartphone users), or email/applications (71%+ of Smartphone users), this usage has one thing in common-dramatically increased demand for data and media consumption.
As a result, we are evolving our approach around how we package our data solutions and pricing to our customers. Coming soon, Verizon Wireless will move from our existing pricing format to a structure designed to allow customers to choose the right data solution that best aligns with their needs.
The Value Benefit Equation...
With the new usage based pricing plans, the vast majority of our customers will be able to enjoy their typical level of data consumption for the same value that they outlay today. Additionally, for those who have greater requirements for data, we will have solutions that they can tailor to their unique needs.
Perhaps more importantly, given our strong desire to continue to provide enhanced capability and value to our customers, the new data pricing will apply to both our 3G AND 4G LTE networks. So in essence, for those customers in our ever and rapidly expanding 4G LTE network coverage footprint, users will gain the benefit of the fastest and most advanced 4G LTE network in the U.S. all for the same usage based value. More speed. More functionality. Same value.