Verizon confirms tiered pricing for LTE data

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Speaking to a crowd of investors at a Barclay’s conference this week, Verizon Wireless CEO Lowell McAdam said that the introduction of its LTE network later this year will see the company introduce tiered data plans. According to McAdam, one of the reasons Big Red has opted to go this route with its next-generation network is because “people will have four or five or perhaps even more devices they will connect to the network.” Before anyone starts to wig out, McAdam made it clear that the tiered pricing won’t be as expensive as it sounds. Thanks to the efficiency of LTE, Verizon’s cost per megabyte will be approximately one-third of what they are today. At the same time, McAdam also said that LTE will offer further savings to customers, as he expects that all calls made come 2012 will be done via VoIP as opposed to its CDMA network. Verizon is expected to have LTE in place in 30 to 40 markets by the end of 2010.

[Via Phone Scoop]

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88 Comments
  • Joe

    “won’t be as expensive as it sounds”

    LOL… somebody get this guy a spot on Comedy Central

  • Lolipopjones

    LTE will not be a replacement for Home internet services. Wireless bandwidth is too fragile to handle the amount of Data that wireline ISPs deal with.

    Your living in a dream if you think an LTE will change that.

    • http://@Stark VerizonGuy

      depending on the speeds you are looking at it very easily could be. Tell me where you get 10-12 MB/sec on cable? Not very many places.

  • mpciii

    As long as I’m not paying $30 for less I’m fine with it. My wife loves her Eris but hardly uses 500 mb a month. I use a couple gigs (split time with wifi) and we pay $30 a month each. I also have a mifi (no other high speed options beside satellite where I live) which is another $60 a month. I’d be fine with $10-$15 a month for a gig or two.

  • Joel

    Lolipop you think wireless internet in home is a dream? Comcast is using it already and its just wimax. Is it to futuristic to say that soon everything will be wireless? That’s where we have been going for the past 10 yrs I bet you thought WiFi was a crazy thought back in the day, replace the fiber backbone in cell towers with the fiber backbone ISP have and you can actually spread bandwidth… I’m sorry but I thought LTE meant LONG TERM Evolution. Pretty soon people are going to want their data from home EVERYWHERE they go, how do you purpose that will happen? Stop living in the 20th century

    • J Glenn

      I haven’t have a wire connected to my home in over 7 years. I have VZW phone (Droid) and my internet is a VZW broadband wireless USB dongle. I’m on it as I write this.

      • Chummm

        If you can stay under the bandwidth limits and away from latency sensitive sites and apps this is probably a decent solution. However, a lot of cool internet “stuffs” resides outside this circle.

  • StevenGlansburg

    Anyone know of a list of current and upcoming areas where LTE will actually be available?

    • http://www.verizonwireless.com VZW

      Vegas, ATL, Dallas, Boston, NYC, Seattle, Chi, Miami, and DC are all that I know of right now.

      • VwzGuy29

        twin cities, mn
        denver
        la
        san diego
        san fran
        new orleans
        austin
        san antonio
        phoenix
        portland
        kc

      • kokolizo

        Is LTE available now in NYC Manhattan. My contract is over with Sprint looking for new network.

  • Jon

    Look at their existing prepaid data: $50 for 1 GB over a month. Divide by 3 and that’s $16. That seems to be reasonable for say a netbook that I’d occasionally use.

  • Colin

    Plain and simple. BOO! Cheaper network operating costs shouldn’t make for harder to understand plan options. Sorry. This is lame.

    • http://www.verizonwireless.com VZW

      It cost a chunk to build out.

    • justin

      cheaper to operate does not mean cheaper to implement … seriously .. wireless networks don’t grow on trees. there is no LTE fairy that flutters around dropping brand new hardware and multiple 10gigE pipes everywhere …

      get past your sense of entitlement and look at the big picture.

  • http://www.thedigitante.com Andy

    I like this a lot. What I am imagining is a plan that works for all my data consuming devices (smartphone, tablet, laptop, etc) and having them all come from a single tiered bucket of minutes. Right now, I pay $40 for internet at home, $60 for an aircard or mifi, and $80 for my smartphone. What if I could instead pay $100 for all those devices and get a bucket of 10GB a month? That would work for me.

    Of course there would probably be varying rates for wired connections vs wireless connections. I like this idea.

  • ChocoTaco

    The nice thing about VoIP calls on LTE vs. cellular is the 700MHz LTE band will cover even further than the 850MHz cellular. That means better building penetration and more coverage from towers. With LTE, people are going to get used to seeing ’4G’ on their phone when there is no ’1X’ available :)

  • Butthead007

    Well, ATT alluded to tiered pricing months ago. I am not entirely sure who everyone is kidding regarding these ‘surprise’ announcements. If you don’t believe that Ralph and Lowell talk alot then you really live in dream land.

    Sprint is continuing to give away the farm just to stop the exodus. Notice though, Sprint is attaching a $10 fee for 4G access? Sprint is not as magnanimous as the sound. They are doing the same thing the other carriers do, only they are gradually greasing you up so get ready for Sprint to start with the same policies. Notice certain phones required ‘Simply Everything’ plans? Hmmm.

    ATT and Verizon are almost identical in their pricing structures. For most basic voice and data services, they are identical. There are subtle differences with ATT coming in SLIGHTLY cheaper in a couple of areas but does that really matter if you get crap service?

    TMobile is the odd man out and they definitely do march to the beat of their own drummer. It’s good to see them investing in their 3G network and expanding. But they are not quite there yet.

    So, tiered plans are coming. Comcast does it with a 250 GB cap limit. Other providers do it. I think Verizon could create a sensible set of tiered data plans and make them work for customers. Hopefully they will take a leadership role and make insanely great offerings. We shall see. No information has been released so we have to take a wait and see approach.

    • Don Louie

      Sprint has no cap with ANY of their plans, forgot to add that?

      • justin

        of course .. they can’t afford to put a cap on their plans and risk hacking off what few subscribers they have left … like the original poster said:

        “Sprint is continuing to give away the farm just to stop the exodus.”

  • vicshalls

    I am usually not one to respond to these. I just get a kick out of reading all of ya’ll fussing about something. Keep in mind that I am just as guilty as the rest of you in using my smart phone anywhere and everywhere. My point is if we don’t like paying for things in tiers then we should all just stop using this feature and go back to the stone ages where we only did our web surfing at home. Not saying I will do this unless it just gets so out of hand that I can no longer afford to be apart of the tech world I love so much.

    • ItsMeBeaches

      Dude im thinking about trading down from a smart phone to a feature phone just because i cant justify paying 110 bucks a month…for 450 mins seriosly 110 bucks…I mean i love my phone, i just wish i didnt have to have a data plan, its freaking stupid, I NEVER USE DATA ON MY PHONE…the only data i use is the ones that stream to me automatically, which i dont even care for. The only reason i still have a smartphone is so i can do HW, or maybe work on a project when im on the road…but its really not worth it to me anymore…im thinking about making the switch and save myself like 240-360 a year and just bring my laptop with me more often.

      • justin

        there are a lot of people who only have a smart phone because all their friidns have an iphone too …

  • Doll

    I’m glad this came out so everyone can shut the fuck up about Sprint charging $10 for uncapped data NOT 4G. Not only will other carriers charge for 4G, they will more than likely more CAPPED data. Although I’m sure Verizon enthusiasts will find someway to justify 4G pricing models.

  • http://rossmanngroup.com Louis Rossmann

    The efficiency of LTE will have _NOTHING_TO_DO_ with Verizon’s pricing.

    This is the company that had $1.99 data charges if you hit the wrong button on your dumbphone.

    It will be based on what they can get away with, not their actual costs.

  • Ryan

    I don’t know what some of you are smoking but pulling up sprints site shows on data plans 4g is unlimited but 3g is still 5gig cap. Now it may be unlimited on phones but so is Verizon for smart phones.

  • WT

    Personally I’m not excepting it to be super cheap, but if I was 15-20 bucks for like 10GB (considering the speed increase, it would only make sense if the cap goes up), I wouldn’t mind. I don’t download large or massive quantities of items. I was to surf the web and check my emails at full at about the same speed as home, I want to check out a YouTube video without a 50 second buffering.

    Texting + Data has gotten outta hand in terms of pricing to be honest. Google Voice is nice but realistically thats like having 2 numbers, and unfortunately there aren’t too many people who are tech savy and know how to send a text to your GV number. 30 bucks for data, and another 10-20 bucks if you want to text on top of your voice plan. I like Sprint’s plan, but shitty CS experience pulls me away from Sprint. 60 bucks, for what? 1000mins, data, and text? I wouldn’t mind paying 50-60 bucks for that, and they don’t need to include the unlimited to any mobile carrier and that would sound like a deal to me.

    50+30+15+ almost 12% in taxes and fees is close to 100 bucks a month. Not to mention if you have a family plan thats another 9 bucks or 15 bucks.

  • Thomas

    Well I have 5 lines with ATT, and a family member that has 4 lines with verizon… 2 of the lines on my account are iPhones, 1 is a smart phone and the other two are just regular flip phones…. I have unlimited data on all 5 lines, unlimited texting, 2100 daytime mins, unlimited nights and weekends, unlimited mobile to mobile and A-List calling, and then there’s the ringback tones, insurance on phones and all that good stuff. And my bill is still cheaper every month than my family member, who by the way has no smart phones on there plan. Now, according to the plans we have we should be within about 15 dollars of each other every month… But food ole verizon always finds ways to screw them over…. I may not have ALL the coverage verizon does… But at least my bank account isn’t always sucked dry just so I can say I have a signal in the few places ATT doesn’t. If you don’t like capped data plans, don’t use data, if you don’t like paying 100 bucks a month for a phone buy a prepaid and shut the hell up! People always want something for nothing and then wonder why America is goin down the toilet.

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