Verizon Wireless to drop unlimited data plan, offer tiered pricing for LTE?

By on Jun 18, 2010 at 12:22 PM
General June 18, 2010

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Verizon Wireless brass continue to drop hints that the advent of the carrier’s 4G LTE network will foster a change to the structure of its data plans. Speaking with Bloomberg, Verizon Wireless CFO, John Killian stated that, “We [Verizon Wireless] will probably need to change the design of our pricing where it will not be totally unlimited, flat rate”. Killian’s comment suggests that Big Red will adopt AT&T-like pricing, with tiered plans, for the customer’s convenience; the unlimited data plan will be removed from the pricing model. Anyone’s enthusiasm for LTE a bit dampened by this comment, or did you already assume that tiered pricing was inevitable?

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  • Robert

    I think what is needed is a class action lawsuit against those companies that DO NOT offer an unlimited plan option, as well as a barrage of complaints to the FCC. C’mon people, inaction is not the way to go here…lol!

    • Tazcfe

      or you could go to a company that has it…its a free market

      • entropy

        sometimes you can not, in my case where I live Verizon is the only one that has 3g coverage.

    • Industry Employee

      You want a class action lawsuit because a for-profit company has a pricing policy you don’t like…? Get a life! Vote with you checkbook, if you don’t like it don’t buy it or leave for a new carrier. Don’t advocate legislation and litigation, hello! It’s call “free-market capitalism”

  • verizon employee

    the unlimited plan from verizon never really was “unlimited”. in the fine print it has always said it was capped @ 5gb. don’t beleive me…google it!!!

    Posted from BGR Mobile (iPhone) at: Hanska Minnesota, USA

    • Chris

      This is true, actually. The website doesn’t even advertise unlimited web, now. It just says dataplan for smartphone, 5GB

    • vzwemployee

      Umm that’s on broadband stupid

  • dave

    Will VZW allow us with unlimited plans to keep them?

    • Goggles

      If you currently have an LTE data plan I imagine you’ll be grandfathered in when they change the prices, but you don’t.

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  • tallperson117

    NNNNOOOOOOO!!!!!!! ;(

    no pandora over 4G ;(

  • CMC

    That’s it – just punish everyone for the actions of a few. Everybody goes to jail because a few people are guilty.

    I have always hated VZ for introducing the 5 gig cap to start with, and now att with their ridiculous 2 gig.

    No competition here – where in the hell is regulation??

  • http://davebc.com David Chartier

    Mobile broadband has been “unlimited” to attract customers since no one was using it. Now that cusetomers are finally coming, wireless broadband is changing to a commodity model, just like gas and cable TV. Should everyone have to buy unlimited gas and pay $120 for cable tv? No. Tiered pricing makes sense and it’s more beneficial to the entire consumer base, even if the few heavy users have to man up and pay for their usage.

    • BB

      I have no problem with tiered pricing. The problem is just like with voice plans if you exceed your allotment your pricing goes through the roof. A fair pricing plan would be if you exceed your allotted usage the carrier automatically moves you to the next tier.

      • Chris

        I’m not a fan of automatic price plan adjustments, but I think a text message when you’re getting close, a suggestion to move, and a throttle to slower speeds when exceeded (ala T-Mobile) seems plenty fair and appropriate.

  • toddk

    What I love is that BGR about crucified AT&T when they launched their tiered data plan structure and now that VZW is it they’re reporting it with blissful objectiveness. The blatant biased BGR has is nerveracking.

  • Chris

    I love how when AT&T does this they are the devil, but when Verizon does it they are being proactive and protecting their customers experience.

    The other thing about peoples comments about this being OK because it is just for LTE is because LTE is more efficient than current 3G technologies so if implemented properly the new network will be able to handle the data traffic better.

    I use a lot of WiFi so my data usage stays around 1.5GB. Based on that I like the idea of Tiered data because it works fine for me and will hopefully get the people that are using 50-100x the usage of me off my network. These are the people that are causing the network issues on AT&T, not a lack of investment.

    • Chris

      The only thing I find devilish about AT&T is not offering enough tiers to their plans, not having adequate positions for overages, and charging you an additional $20/mo for having the flexibility of using the data you’re paying for how you want to pay for it. Furthermore, I also find it devilish/evil when they charge you for data broadcast from your own internet over the Microcell equipment you not only have to purchase, but also pay a monthly subscription to use, as well. (AT&T effectively pays nothing, but still charges you… hardly seems fair.) In general, I see the point of tiered data, and have seen this coming for a long time, but I still think I prefer data speed throttling for tiers, rather than usage tiers. It’s very difficult to keep track of usage, where if you were simply throttled (ala cable/dsl plans), you could use what you need at the speed you feel most comfortable to pay. As a general rule, cell service pricing schemes have a LOT to be worked on. Personally, I DO see the need to move to a tiered pricing plan, since effectively on 4G data networks, the calls are also digital (AKA, basically free.) If networks provided unlimited data, they probably wouldn’t recoup enough of the costs for infrastructure investment. The free market hasn’t yet sorted out a good pricing structure because competition is wildly restricted by competing technologies and frequencies by the carriers in the U.S., as well as exclusivity with inhibit competition. Personally, I think we should have a single national grid and allow all carriers to share the same bands, leasing the data usage and bandwidth from the government, allowing smaller ISPs to get in the game, like the old days of dial up, where carriers compete on customer service, pricing, technologies, and options. Infrastructure is too expensive for the little guys, so only the big players get to make the rules, meaning the consumer usually gets screwed. Altogether, the whole communications industry is a mess right now, and de-regulation has been completely ineffective due to the lack of necessary means to make de-regulation truly effective.

      • blu-ant

        microcells do not require a monthly plan unless you want unlimited calling in your household for at&t customers. please get your facts right.

  • Fezzik

    Personally I think tiered pricing is fine. Right now we would be fine going to AT&T type tiered pricing. My wife uses less than 200mb consistently and I use less than 2GB consistently. I would hope that VZW offers different tiers or more tiers. As it stands I could do 200mb for her 2GB for me with LTE I may want a 5GB tier as well and if they offer Tethering and what not I would hope it wouldn’t pull from the pool if I have to pay extra for it.

  • Tim

    Do us all a favor and post the email address of the Verizon Sales and Marketing Brass. As a decision maker at a medium sized company If Verizon changes thier plan I will push for a change of provider for all of our company users cell phones with or without a data plan.,

  • jimmy

    if they drop unlim data they will lose ppl cause a android phone uses data in back ground and that means they setting ppl up to go over

  • Neckername

    Those tiers better be very generous because if they decide to have users run at even a reduced bitrate. The users will be getting speeds comparable to fios if we’re talking LTE. Something like comcast’s 250GB limit should be in the works

  • blu-ant

    and you’re the reason the network becomes clogged up and companies have to tier there plans to control the usage on the cell sites. good job!

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