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Verizon Confirms Plan To Switch Away From Unlimited Data Plans
loafula writes "Looks like Verizon is going the way of AT&T by not offering new unlimited data plans and switching to a tiered-only plan within six months. Verizon CEO Ivan Seidenberg said the new plans would be different from what AT&T offers, but didn't provide further details. 'We're not sure we agree yet with how they valued the data.' Everybody take a good look at your contracts; this will be a nice opportunity to jump ship without the hefty fee."
I don't see a problem so long as Verizon charges per kilobyte.
If libertarians are so opposed to effective government, why don't they all move to Somalia?
...I have no problem with tiered pricing (I don't like it, but I accept that it was inevitable)...but what's with the huge gap, Verizon? I can get either 200 megs, or 2 GIGS????
What I would rather see:
200 megs
500 megs
1 gig
2 gigs
Living With a Nerd
since I got my HTC Desire unlocked from them, this may well be a good time to jump ship to a better plan from others. They have good coverage, but their plans suck. I only got mine with them because they were the only ones with a Desire on the day I wanted to get it...
metageek
Verizon doesn't have an "unlimited" (as in uncapped) data plan, at least not here in GA. You get to chose 250MB/month (!!!) or 5GB/month. I believe they do use the word "unlimited", but it's a lie -- the caps have been in place for at least the 30 months I've been with them.
Caveat Utilitor
While having Unlimited seems nice. For average usage we actually use a lot less then we think we will need.
On my phone I use about 200MB per month and I use my phone quite regularly. However I am on Wi-Fi for most of the time And if I am out of Wi-Fi Range Then is usually because I am driving and not really using my phone. So for people who use the phone for normal stuff it is actually probably a better deal, But people don't think it is because it is metered but they are probably saving money as a tradeoff of having the same bill every month
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
Same with T-Mobile. They say unlimited, but they really mean 5GB. I suppose one could argue it's still unlimited as they cut you down to below Edge speeds after that without extra charges, but at that point I'd say you're pretty much cut off as it's not really good for anything. I'm curious what does Verizon do after the cap? Is it a cut-off, extra charges, or throttle you down to next to nothing?
"why don't you just slip into something more comfortable...like a coma!"
People keep clamoring for a Verizon iPhone, but Verizon is the last company you would want to see get its hands on something like that.
Verizon has good coverage, but their customer service is, by all accounts, absolutely atrocious. And now it has gotten to the point where a CSR can get in trouble for helping you save money:
link
Verizon has also shown time and time again that it will lock down phones to an extreme degree. If you think AT&T's reluctance to allow tethering is a problem, wait until Verizon gets to dictate terms.
The company nickels-and-dimes its customers to a degree that is shameful even by U.S. cell phone company standards. I have my fingers crossed for an alliance between Apple and T-Mobile. Verizon is just a terrible company.
This is actually a good thing. Selling a limited "resource" as unlimited is not a sustainable system. Just ask AT&T...
how about no blocks just $0.01 per MB or big blocks with rollover.
The original post has made it sound like this will be a get out of contract free card. I'm guessing that Verizon will take a path similar to AT&T and grandfather in customers with a current unlimited data plan. Even if Verizon (or AT&T) want to get people off unlimited data plans, they can do it when people upgrade phones. In order to get a new device, they could require that you change plans - and that isn't grounds for termination of the contract (plus, usually you're pretty close to the end of your contract when you can upgrade). After two years, they could forcibly move anyone who didn't get a new device to the non-unlimited data plans and they'd be out of contract already.
Carriers are usually pretty smart about not changing the terms on people currently under contract. Plus, the heaviest data users are probably going to be the ones who want to upgrade to new devices more often - and will be early adopters of 4G. Both of those are chances to get those customers onto non-unlimited data without invalidating the contract. If someone is on an unlimited plan and only using 1GB of data, the carrier is just getting additional money since they're paying for more than they're using. No reason to force those people to switch.
I certainly hope this is what happens, but in reality it probably just means that the race to the bottom continues apace. Watch for all the other carriers to jump to this model, now that AT&T and Verizon have shattered the barrier.
How many people, when the first airline announced a $25 per bag checkin fee, said "Good, this opens up competition, because the other airlines won't do this and I'll just stop flying XYZ Air from now on!"
How many people, when Verizon announced their increase in the ETF for smartphones, said "hey, here's a reason to go to [insert other carrier here]!"
When a company adds an innovative new way of making money, other companies will follow suit until that becomes the standard. The only way to resist this is to choose a company that doesn't do that, and the US doesn't have enough truly nationwide carriers with acceptable coverage to make that practical. If you want coverage here in Maine, your choices are AT&T and Verizon, and the choice between those two is often dependent upon where you live (which one has a tower closer to you). If you live within 5 miles of the highway south of Augusta, and maybe a few other scattered areas, Sprint may be an option for you.
And, of course, a lot of people are locked into multi-year plans thanks to the model that most cell carriers have adopted - locked phones with a contract. Unlocked phones don't save you a lot of money, often cost a lot upfront, and don't offer a real choice of carriers since pretty much all of the carriers use a different protocol or frequencies. My wife uses an unlocked phone, but I know that since it's a GSM phone my only real choice is AT&T if I want 3G. We only wanted unlocked because she wanted something with data access and we didn't want to have to pay AT&T $30 a month, so we got something with WiFi (and since it's an unlocked phone, AT&T can't turn off the WiFi or force us into a data plan).
So, in reality, Verizon jumping onboard with this pricing model means that the days of even acceptably large (if you consider 5GB a month acceptably large) data plans are over. It's good news for the very casual "get a few emails, check the weather a few times a week" user, and very bad news for people who do video conferencing on their handsets, or want to use data-heavy services like YouTube or streaming TV.
"This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
If the wi-fi on my Droid would work consistently, I wouldn't care about limited data plans. Since Verizon doesn't see fit to fix the problems (or from what I have seen, even acknowledge they exist) they should just leave their data plans alone.
iPhone on Verizon?
If, at the same time as they institute tiered data plans, Verizon also brings the price of tethering down, then I am in.
They have been using the argument that "tethering costs more because tethered users use more data" to justify charging US$60 for tethering vs. US$30 for smartphone use. If they go tiered, then logically that argument should be mooted, and they should bring the cost of tethering down.
Of course, this being Verizon, to make that actually happen would require the use of a Bambleweeny 57 Sub-meson brain, an atomic vector plotter, and a cup of very hot tea - none of which I happen to have on me at this time.
www.eFax.com are spammers
I bought a pipe to the internet, I should be able to do what I want with it. If it's limited to 2 GB of data or whatever, then so be it, but that's different than saying "If you connect a phone it's $25, but if you connect a laptop, it's $15 more for the same exact data." It's price gouging people who use laptops just for the convenience of using a full size keyboard and monitor.
It's also the way the big providers are trying to cash in on demand at the same time limiting demand for their own broke ass networks. If you really want it, you have to pay thru the nose, and we'll price it high enough that we won't get overloaded since we don't upgrade our networks fast enough.
"All great wisdom is contained in .signature files"
We all knew this was coming. It was only a matter of time before a carrier did that and as soon as it happened anyone with most of their brain active could tell the rest of the carriers would follow suit within 2 years. Someone might offer unlimited data, but it won't be a carrier that the majority of the world will care about. Having said that there's little reason to jump ship. However, you might be able to finagle an early upgrade date for your "New Every Two".
Such as who, exactly?
Not one of their existing competitors, who have been even more eager to do exactly the same thing.
So who exactly is going to manage to set up a new competing mobile broadband network, and where are they going to get the massive sums of money required to pay for the kind of infrastructure that will be necessary?
Remember, we're not just talking about having wifi hotspots in the center of a single metropolis. We're talking about being able to access the internet pretty much anywhere where people live.
That has been the case with AT&T too (at least for the iPhone), until recently. They gave you what was labelled an "unlimited" plan, but the cap was really 5GB.
Now, my choices are 200MB (!!!) for $15/month (going over gives you another 200MB for another $15), or 2GB for $25/month (going over gives you another 1GB for another $10, up to 3 additional GB).
Even worse, they charge $20 just to enable tethering, and in doing so you get exactly zero additional data.
I am beginning to wonder if this was the real reason for Google and Verizon saying that while net neutrality is fine and good for the wired internet, the wireless internet shouldn't be. You start to wonder after reading this.
I agree with jellomizer; most users won't hit their caps in a given period in the near term. We just switched from T-Mobile to VZ (I've gone from zero to 4 bars in parts of my building at work), but we seriously considered AT&T--which was off the table until they switched to cheaper but limited data. Price matters. My wife would be fine on 200 MB/mo, and with a little restraint I would be, too. I'd be comfortable with the 2 GB cap as much as 3-5 years out.
I think most consumers can rest assured that they won't outgrow these caps over the course of a 2-year contract, but this trend highlights the broader problem that spectrum is scarce and getting tighter. (I'm not an engineer, but my understanding is that AT&T can't possibly build enough towers under current constraints to fully service lower Manhattan on a Saturday night.) What happens when this year's 1 GHz Snapdragon processor seems like your old 486? Consumer demand for mobile bandwidth is going to keep growing exponentially.
If the mobile carriers don't increase caps at a corresponding (albeit halting) rate, they'll get some dissatisfied customers. The only solution is going to be more spectrum. I hope the unregulated TV white spaces ruling yesterday (yippee!!!) is just part of a continuing trend of freeing spectrum for IP-based (rather than dumb radio) uses, but at this rate, the mobile wireless industry is going to be hungry for more auctioned space soon.
I generally think telco lobbyists cry wolf at policymakers' doors all the time, but in this case, I think they're right.
Not true about 5 GB limit. The old iPhone plans are unlimited. The 5 GB cap applies to another plan.
This is going to start being a real issue that could amount to many dollars per month for many people. Will these new tiered plans warn you when you're about to get charged (which Verizon does when you attempt to tether, instead of using an implicit agreement)? Whether they do or not, 120MB is a lot of browsing that I don't get to do when I'm at the edge of my 5GB limit (the only higher tier available around here).
So far, nothing- a coworker used over 10 GB one month (streaming world cup from his sling box at home). Not a peep from Verizon. Likewise AT&T hasn't said anything when I went over my 5 GB limit listening to internet radio (I'm grandfathered into the old plan).
Sigs are for losers
The old "unlimited" data plan contract included language which would allow them to take action if they decided too many customers used more than 5GB. To paraphrase the legalese they used, they basically said "we *could* consider 5GB to be 'too much' if we decided to."
Regardless of whether 5GB was the actual number, the fact is their "unlimited" data plan contract did permit AT&T to impose actual data transfer limits.
I remember seeing the commercials just a few months ago where Verizon was bragging about reducing the rate for their "unlimited everything" plan.
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
Yeah, business pretty much always works like this - a company introduces a new tech, or new companies enter the market, and you get some (relatively) good deals (sometimes - I'm still not convinced that at close to $100/mo for one phone, the 'unlimited' plans were much of a good deal - just not AS BAD a deal as their *other* offerings.
In the end, when you see good deals (or at least deals you can live with), take advantage of them while you can. Yes, it won't last forever.
Take for example, Hulu.com - when it first launched it was pretty awesome. They had a number of relatively good movies and a great back catalog of TV shows. I knew it wouldn't last, but I enjoyed it while it did. Now, of course, they've yanked something like 75% of their library and made it part of the Hulu+ subscription service. I knew it'd happen someday (when I was watching streams on Hulu, I got *way* too many ads for non-profits and environmental groups, etc - low-rate ads which they hardly make any money on, so I knew their free model was failing), but it didn't make it any less good while it lasted.
Only... your and idiot.
I got cheap and switched to 200MB plan. As a result I now have two devices - iPhone and iPad - on their network for the price of one. Neither comes close to the limit - last month was 66MB - as I am nearly always in range of a free wireless network when using phone extensively. Had they only offered old unlimited $30/month plans for both, I would be paying them double the money for data without putting any extra strain on their network. Effectively they are encouraging people to reduce their dependence on cellular and look for alternative ways to access the data. The trouble is, once they have started thinking along these lines, they just might end up turning off cellular on the iPhone and getting a cheap prepaid phone for actual calls.
You have no way of knowing that. By keeping an unlimited plan Sprint would have a nice differentiator from the competition. It would make sense given it's position. There is less and less reason for cell providers to collude anymore. In the past it was a race to the lowest price. The smart players will want to entice those who don't want limits, perceived or otherwise. That's what gets press. AT&T killing unlimited data plans just made people lust for a Verizon iPhone even more. Now if Verizon follows suit there could be an opportunity for Sprint to keep unlimited plans and lure data users and maybe Apple too.
Extra charges per MB. Commenting on the subject of jumping ship when they change, though, I can't say that there's much in the way of choice if you're wanting adequate coverage for more than voice service- pretty much everyone is going to screw you on exceeding that infamous 5Gb cap on those "unlimited" plans- even Sprint will do that. So "jumping ship" is a bit flawed in thinking if you're actually using/needing those smartphone functions. In the large, I use them for business uses, so...
I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
I don't really know the history here, and as it's Friday I'd rather go and get drunk than spend some time googling to check my facts on this..
At one point a Telco was stupid. They didn't spot 3G\HSDPA coming, they didn't spot Smartphones (with tethering and VOIP) and even while some techies in the company were probably jumping up and down screaming, they believed those trustworthy marketing folks and thought they could sell 'Unlimited' data for a fixed price and still turn a profit. In those early day of mobile data they probably could.
As a competitor was doing it, everyone else started selling unlimited data or they'd lose market share. At this point they should probably have checked with some regular ISPs who were starting to see just how much using the term 'Unlimited data' could kill their network.
Now, as mobile networks are creaking under the strain of everyone owning a smartphone, there's a frantic effort to change the definition of 'unlimited' to 'really very limited and we'd like some extra cash when you go over the limit'. Few will drop the term 'Unlimited' because they'll lose customers.
Personally I'm abusing my 'unlimited' data plan every chance I get. My provider has already set a (rather generous) limit in their 'fair use policy', but I suspect that'll be cut down soon..
Just my thoughts.
For those of us stuck using a Blackberry because of work, it hardly matters. I just looked and I've used less than 10MB this month with a week and a half left in the cycle. The reason? The only app on Blackberry worth having that uses a lot of data is Pandora.
Either their network is getting a lot of use from Android phones, or they don't want to have to grandfather in an iPhone accounts when they switch. I think this is more proof that the Verizon iPhone is coming sooner rather than later. Add in the fact that Verizon is trying to through people off by saying they hope to get the iPhone in their LTE network and it sounds like the early 2011 rumors are true.
No problems here. Prepaid, so can pay or not pay, use or not use.. makes no difference. Only recurring thing is 50 cent/month keep alive fee.
5 cent minute/10 cent meg/2 cent text.
If I was a heavy data user I'd do something else, but I use it mostly as a phone and use maybe $20 worth total a month.
"He's lost in a 'floyd hole"
No it really didn't. The contract mentions they can restrict their Data Connect plans to 5GB. It doesn't say anything about the iPhone plan being limited. Feel free to contradict me with proof of what the contract says or actual evidence of someone being booted off an iPhone plan for exceeding the data limit. You will hear many reports of people who go well over 5 GB without an issue.
Just "wow" at the dollars/cents confusion.
But you're probably right about the pricing model. Treat the data like a public utility and bill according to usage.
If we wind up with the same cost here (and I haven't completely boned up the math...why am I at work this late on a Friday?), $0.002 per kilobyte, using 5 GiB works out to $10,485.761.
Ouch.
Verizon should be paying *you*, not charging you to use an Android phone. Verizon makes $$ signing license deals with companies (i.e. Skype, Amazon, etc) to put "always running" applications the handsets. If you stop the applications, they will re-start automatically depending on user actions on the phone (i.e. incoming SMS, outgoing phone call, etc).
I merely said that the iPhone unlimited data contract allowed AT&T to take action against users who used what they considered to be excessive amounts. Whether AT&T actually did so is irrelevant.
Nevertheless, when I get home I will dig out the contract AT&T mailed me after I got my iPhone last year and let you know what it says. (If you really want I'll even scan it for you.)
Get a USB WiMax modem for your laptop/netbook, and throw your obsolete 2G and 3G stuff in the trash.
been wanting to switch to verizon, but i've been waiting because their unlimited data plan was too expensive compared to my 200MB AT&T plan. hopefully tiered verizon can compete. new phone for me, ha cha cha cha cha
Its no big deal and I understand what you are saying. I just think this supposed 5GB cap has gotten a lot of hype when it is not actually used against anyone.
Go prepaid instead, pay as you go. boost, 50 bucks per month, unlimited talk minutes, texts, walkie talkie (to other guys on boost or sprint), plus FIVE gigs data. Or you can do minutes at ten cents per, and data at 35 cents a DAY. They have both Iden network and CDMA now (basically, if you can get a good sprint signal, it will work) There are now some other prepaid guys with similar deals. They have cheap phones to at least medium decent phones.
Two year locked in plans with ripoff rates=lame. And there are no "deals" on those phones they use for teasers with the two year "plans", you are still paying full retail price for them.
You want a much better deal, they exist..just stop looking at post paid. Pay the cash for the phone you want up front, then pay cheap to use it. Prepaid is where it is at now for the frugal minded.
No, this is totally incorrect. T-Mobile and Sprint in the US both provide truly unlimited data. On Sprint, for example, I used 50GB a month for a few months on the 3G network before I bought a Clear 4G subscription.
Brian Fundakowski Feldman
Verizon requires a $30/month unlimited data plan with (some?) smartphones. This is distinct from the 5 GB/month data plan that you can buy separately. I would assume that so few smartphone users exceed 5 GB that they figure it's more profitable to advertise it as unlimited. Especially since people tend to greatly overestimate their data usage. OTOH, all tethering plans are limited.
I really don't get it. Companies continue to push the latest stuff like streaming video, voip, wireless gaming, time shifting but then try their best to make that damn near impossible. In my area even the cable companies are getting into it, my neighborhood is so over subscribed that my 4g clear mifi router is faster than my cable connection...thats just sad.
Not true.
Been discussed before. Etc.
Blah, blah, blah.
Verizon is Verizon is Verizon is Verizon, whether in GA, MN, TN, VA, or FU.
Verizon currently does offer an unlimited data plan, but only for smartphones. There are no specified limits, at all, thus making their unlimited smartphone completely unlimited (on paper, at least).
A MiFi or a netbook or an aircard or a whatever other non-smartphone device is limited to, at most, 5GB/month.
So: I can, currently, absorb as much bandwidth as I want with my Droid. But if I had a MiFi tied to a laptop, the plan would cap out at 5GB.
It's been this way at least since I got the Droid not long after launch last year. Previous to that, I didn't care enough to pay any attention.
Their telephone data plans are toward the right side of this page. Their dedicated data plans are described separately, however, over here, with very clearly stated limits. And, in neither case do I see any particular mention about excluding Peaches.
Kid-proof tablet..
Flash a custom firmware and you can put a stop to that shit pretty darn quick.
Shut your cell phone off. Seriously - how long did you survive WITHOUT one?
The Truth is a Virus!!!
Only... your and idiot.
My irony meter is pegged.
Advice: on VPS providers
Phone usage isn't capped. Tethering is capped at 5GB
...and the number of people still willing to pay it. The population of consumers have proven that no matter the price charged, the sheep will pay it. There is no incentive for them to keep prices down, or make the plans easy to understand or convenient for the consumer. All y'all with your smart phones are helping to perpetuate the problem. Until people stop subscribing and drop their phones, in other words, speak with their wallets, the mobile users will continue to be raped for more and more money. The solution is simple: stop paying the prices. At your next change, cancel your mobile phone subscription, put the phone away.
Bearded Dragon
I am now in my 3rd year of saving $1100 per year and about 60 hours per year (or so it felt) not spent talking to customer service.
All i had to do was drop verizon and get a pay by min. phone.
Highly recommended...