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Verizon Confirms Plan To Switch Away From Unlimited Data Plans

Posted by Soulskill on from the but-the-wireless-tubes-are-infinite dept.

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."

28 of 207 comments (clear)

  1. Come on... by Pojut · · Score: 2, Insightful

    ...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
    1. Re:Come on... by Anonymous Coward · · Score: 5, Funny

      Huh?

      If your /etc directory is 2 gigs, I think you're doing something wrong.

    2. Re:Come on... by Rich0 · · Score: 5, Insightful

      What's wrong with something simple like bill=roundup(GBUsedInMonth)*$5 or something like that?

      The thing I don't like about cell plans is that they're designed to make you pay for average use based entirely on peak use, by putting absolutely hideous fees on going even the slightest bit over what you paid for.

      Imagine if your electricity bill was $100/month for 0-1000kWh, plus $5/kWh over. The next plan would be $200 for 0-2000kWh. If you own an air conditioner you'll be paying $200/month in the winter if you don't want a $5000 bill for three months in the summer.

      There simply isn't enough competition in cell phone providers, so more regulation is necessary to make things fair for consumers. There should be a monthly billing fee to cover the fixed costs, and then everything else should be pay-as-you-use, with customer-specified maximums (no surprise $5k bills).

      There is NO other industry that is as customer-unfriendly as the cell phone industry. You get better customer service at the local loan shark.

    3. Re:Come on... by Pojut · · Score: 2, Insightful

      Exactly. I generally use between 300-350 megs per month. The highest I've ever gone was 450 megs. This means, just like described, I'd be forced to go with the 2 gig plan, even though I never come anywhere even close to that much data usage on my phone.

      --
      Living With a Nerd
    4. Re:Come on... by Totenglocke · · Score: 3, Interesting

      They can do tiers the same way that (most - at least in the US) ISP's do - you base tiers on bandwidth (which inherently caps data usage). If you want the $15 a month data plan, you get say 75 KB/s, $25 a month will get you 150 KB/s, $35 gets you 300 KB/s, etc. It's fully workable, keeps people from ending up with no data / insane extra fees, and allows the phone companies to not use as much bandwidth.

      --
      "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
    5. Re:Come on... by wowbagger · · Score: 3, Insightful

      "Did you mean granular?"

      Naw, he meant glandular, as in, "Verizon wants to get you by the glands...."

      --
      www.eFax.com are spammers
    6. Re:Come on... by Mitreya · · Score: 5, Informative
      What's wrong with something simple like bill=roundup(GBUsedInMonth)*$5 or something like that?

      Nothing wrong with that, except that it would reduce the company's income. You see, having a tiered account is a beatiful system where each customer gets screwed in their own unique way! Unless you are using exactly 200MB, you will pay extra. If you use less than 200MB, then you have paid for some bandwidth and didn't use it. If you go over 200MB, then you pay exorbitant extra fees for every MB. It's perfect. If everyone actually paid a fair price for what they used, Verizon would make a lot less money (same applies to cell phone minute plans, btw).

      Also, it is fair to point out that unlike electricity, bandwidth usage does not have much of a cost - the infrastructure is everything. If the networks were completely unused, the savings in maintenance would be negigible.

    7. Re:Come on... by causality · · Score: 2, Insightful

      Yep, that's precisely the meaning of "giving the customer choice". Take the worst of all possible options, segment it and get rid of all other options.

      That's true, but only because marketing Newspeak is so thoroughly tolerated.

      --
      It is a miracle that curiosity survives formal education. - Einstein
    8. Re:Come on... by Rich0 · · Score: 4, Insightful

      I don't have a problem with Time of Use - it makes sense since it allows the consumer to structure their demand in a way that helps the actual infrastructure and save money while doing it (or pay more). It actually reflects the REAL cost of providing the service.

      Likewise, I have no problems with peak vs off-peak pricing on trains or whatever. The system has to be built to handle peak loads, and so usage that increases peak usage should be more expensive than off-peak usage.

      So, if the cell plan charges more between 9AM and 5PM M-F or whatever, I'm fine with that. It is only fair.

      What I don't like is pricing schemes where light users have to pay big prices, or medium users have to pay for heavy use or risk getting socked with massive fees, etc.

      I once got stuck with a text message bill from my kids use of their phones that would have paid for unlimited texting for a year. The issue was confusion on their part over what was in-network vs out-of-network. The problem was that it is often impossible to spot these kinds of problems before getting stuck with a bill, and if it is possible it usually involves paying even more money (paying money NOT to get a service you don't want - sounds like of like a "service" sold by the mafia), or watching my account daily online or something.

      Or how about getting charged when other people send you text messages? If you have teenagers you are almost compelled to buy a texting plan if you don't want to pay a fortune for texts sent by somebody else...

      Bottom line is the whole system is one big scam. The occasional reform is really just instituting something that should have been there in the first place. We don't need minor reforms - we need an overhaul...

    9. Re:Come on... by Kiuas · · Score: 5, Informative

      Not to brag or anything, but damn that's expensive. Here in northern europe, the prices are roughly as follows:

      4,90 euros = 6,6 dollars for unlimted data with a maxium speed of 321 kbit/s
      9,90 euros = 13,2 dollars for unlimited data with a maxium speed of 1 Mbit/s
      14,90 euros = 20,1 dollars for unlimited data with a maxium speed of 15 Mbit/s (with HSPA)

      Now, I understand that most mobile usres don't really have the need for unlimited data if they only browse the net and read emails, but it boggles my mind how the cheapest packet for merely 200 megs is twice the price of the cheapest unlimited packet here. Wtf?

      --
      "It is the business of the future to be dangerous" -Alfred North Whitehead
    10. Re:Come on... by cthulhu11 · · Score: 2, Interesting

      Are your providers wholly independent of the government and not subsidized?

  2. Re:Bait and switch by clang_jangle · · Score: 4, Informative

    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
  3. You know the consumer my actually win by jellomizer · · Score: 4, Insightful

    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.
    1. Re:You know the consumer my actually win by wolfgang_spangler · · Score: 2, Interesting

      I use the most data while I'm driving. Pandora connected via bluetooth to the audio system of the truck. I'm sure I'm not the only one doing that, I think most average users would do that.

    2. Re:You know the consumer my actually win by whisper_jeff · · Score: 4, Insightful

      ...but they are probably saving money...

      I'm willing to bet that's not true. They probably pay the same amount and the heavy users pay more. There's no way that a telco is going to _reduce_ their overall income unless they are forced to. If they are making a change because they want to, I assure you, they are going to make more money in doing so.

      People won't save money unless they are extremely light users and doubtfully even then...

  4. Re:Bait and switch by rogabean · · Score: 2, Interesting

    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!"
  5. I don't want to see the iPhone go to Verizon by Y-Crate · · Score: 5, Informative

    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

    "Effective this past month, all CSRs [customer-service reps} were versed on the usage of blocks. A new policy has gone into effect regarding how to handle Escalated Calls regarding data charges. Now, a representative can be reprimanded and even terminated for proactively offering to block any of the following:

    Web Access Blocks
    Data Blocks
    Premium SMS blocking
    Application download blocking
    Vcast Music or Vcast Video download blocks

    "Essentially, we are to upsell customers on the $9.99 25mb/month or $29.99 unlimited packages for customers. Customers are not to be credited for charges unless they ask for the credit. And in cases such as data or premium SMS, where the occurrences may have gone months without the consumer noticing, only an initial credit can be issued."

    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.

    1. Re:I don't want to see the iPhone go to Verizon by Archangel+Michael · · Score: 2, Insightful

      What good is a phone if you can't use it? Verizon is the only one of the big four that doesn't suck here in my town. And by "doesn't suck", means I can actually make a call without having to move to a particular location so I can get a clear signal.

      I'm personally convinced that tiered pricing is designed to screw people. Here's how.

      They take everyone who uses data, and figure that MOST people use around 250-300 MB data / month. They create a Tier at 200MB and now they can charge MORE for their 2 GIG, than "unlimited" actually costs now.

      My smartphone usage was about to go way up (Droid), but now I'm reconsidering.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    2. Re:I don't want to see the iPhone go to Verizon by Buelldozer · · Score: 2, Informative

      You posted the most sensational portion of the article and the most suspect. It's an unnamed "customer service rep" whose providing that information.

      On the other hand there's the REST of the article that you chose not to post. Gee, I wonder why...

      "First, she flatly denied that a customer service rep can be fired for suggesting a data block. "We train our representatives to solve our customers' problems. If a customer calls and indicates to a representative that a data block would solve his or her problem, the representatives can and should suggest a data block, and we train them to do that."

      Well, that's good. But she went on to say: "Many customers request data blocks to prevent children from downloading applications, music, etc., that could significantly affect their bills. We have been training and encouraging the representatives to step customers through the services that will be affected by data blocks to make sure customers really want a total block, or if they would be better served by going to My Verizon (the online free account portal) and customizing their usage themselves by removing features they don't need. We haven't helped the customer if we put a data block on their phone only to have them call back because they didn't realize it would stop them from downloading a ringtone, for example."

      How you got modded to +4 based on an unsourced and unproveable rumour is beyond me.

    3. Re:I don't want to see the iPhone go to Verizon by IICV · · Score: 3, Informative

      Umm you do realize that what the Verizon lady said doesn't contradict what the rep claims to have been told, right?

      She literally said, "if the customer tells you to block it, you're allowed to suggest that they block it" - in other words, if you know that blocks exist, the rep is allowed to talk about it.

      The rep said, "We are not allowed to suggest a block" - meaning, if the customer doesn't know that such blocks exist, you're not allowed to bring it up. Her statement does not at all contradict the rep's statement, it just seems to if you're not paying attention to the words.

  6. Get Out of Contract Free Card by saterdaies · · Score: 3, Insightful

    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.

    1. Re:Get Out of Contract Free Card by Vegeta99 · · Score: 2, Informative

      I have AT&T with an unlimited data plan, and when I upgraded to the iPhone 4, they specifically ASKED if I'd like to keep my unlimited data plan.

  7. So this confirms.. by microbee · · Score: 3, Insightful

    iPhone on Verizon?

  8. There should be NO price of tethering! by hellfire · · Score: 5, Insightful

    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"

  9. IP-based services need more spectrum by shoutingloudly · · Score: 2, Interesting

    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.

  10. Re:Bait and switch by Cornelius+the+Great · · Score: 2, Insightful

    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
  11. Re:Bait and switch by Brian+Feldman · · Score: 2, Informative

    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
  12. Re:Bait and switch by izomiac · · Score: 2, Informative

    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.