Verizon, AT&T Made $600 Million in Overage Fees Alone in 2016 (dslreports.com)
A new study claims that Verizon and AT&T made $600 million alone in 2016 just on overage fees. And while both telcos unveiled new plans that let you avoid $15 per gigabyte overages in exchange for just being throttled (Verizon's "safety mode" and AT&T's Mobile Share Advantage) the study by Nerd Wallet found that thanks to buried surcharges and other fees, users on these new plans may not save much money. DSLReports adds: That said, the report claims whether or not you save money under these new plans depends on your (or your family's) usage behavior. "If you're on an average-sized plan and your data overages exceed 8GB per year, choosing one of the new plans will save you money, according to NerdWallet and My Data Manager's analysis," says the report. "The individual Verizon Plan will save you money if you have an average plan, even if you never go over your data limit," it continues. "Otherwise, the new Verizon plans and AT&T's Mobile Share Advantage plans won't save you money. In fact, most consumers on legacy plans would be better off sticking to them and paying the occasional overage fee."
they'll never notice
I'm paying so much I don't even remember what I'm paying for anymore...
The only time the telco's want you to switch is when it benefits them. They wanted you on tiered plans so they can rake in the money on overage fees. Sounds like they found a way to make "Unlimited" data as profitable as these tiered plans
The options are A) Spend $600 million to upgrade the infrastructure so there is enough bandwidth. B) Gain $600 million by not upgrading the infrastructure and just charge more for people who try to use it. This seems like a pretty easy decision for a business and, as long as all competitors choose option "B", there is no real risk of losing customers.
I refuse to use either company. Suckers!!!
everyone does it. you pick 5% to 10% of your customer base and get them to pay more $$$ to you for some service
i don't use that much data so i don't really care about your right to watch youtube or netflix 24 hours a day everywhere you go
This is an example of the dynamic innovation you get with the free market: companies compete relentlessly to bring the best goods and services to market and win customers.
And if you lower the taxes on the corporations and their senior managers, we'll all get even more innovation and more good paying jobs.
When we were on vacation to a nice cabin on a lake that had no Internet, I tethered off my phone. Just my wife & I doing normal surfing in the evenings & yes I knew I would go over my 6 gig cap... It occurred to me that I am paying top download the ads on all websites.
While I understand websites aren't free & other than Google, no one is really making much money with these ads. But it appears I will have to go with a adblocker now. Fucking Comcrap starts their cap on us next month. I wonder how much data is being chewed up by advertisements?
BTW fuck them & their throttling plans.
SLOWER TRAFFIC KEEP RIGHT
If I want internet service, I have to take it up the ass from those crooks. And the reason why I have to is because they bribed my state legislature - they just all it campaign contributions.
I think, those crooks should be taxed $600 million and it distributed to their customers.
But that's not going to happen because they own our government.
I left Verizon specifically because of the upsetting and ridiculous extra charges for things like simple use of international data.
T-Mobile really doesn't pull that crap. In fact once I ran out of tethering data allowance (even though I still had data left on the plan) and T-Mobile had no way to pay them more money to increase the tethering allowance... you can bet Verizon would have had $ome way to accomplish that (BTW that tethering portion thing seems to be gone now).
I can also use data roaming internationally with NO FEE WHATSOEVER.
The real test is in the bill though, and mine has stayed the same from month to month despite traveling, some international and some not...
On a side note T-Mobile seems to actually spend money on infrastructure as over time the reception across a number of locations has improved as has the network speed. Still not up to Verizon levels out East but not too bad either.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
That seems like a really small number on a per person basis. I'm guessing between them they have 60 million customers, so this is (average wise) less than a dollar a month for their average consumer.
Pre-paid plan.
It just makes so much sense. Pay up front and when your account runs out of money, the service stops. No overage. It's impossible.
I have gone to the same strategy with banking. I used a pre-paid account. It's impossible to overdraft.
My eyes reflect the stars and a smile lights up my face.
until verizon switches you without your knowledge, or forces you ('you have to switch', which is complete bullshit) to switch... they really, *really* don't like the old legacy alltel plans with unlimited data and no caps or throttles.. i mean, really really hates them.. to the point they will do anything legal or illegal or in violation of service agreements and contracts to get people off of them.
I switched from a legacy Verizon plan to the new plans and got the same data for $4 less. I also have the Safety Mode and Carryover Data. So lower cost, more data, more flexibility. How you'll do with the new plans or the old plans depends on your usage and how their fees are structured. BTW, we're about 23 days into the cycle and we haven't used an data. I'm generally amazed at how much cellular data people use today.
How did they come up with these numbers? Verizon charges $15/GB overage in 1 GB blocks a $26 overage is impossible 1.7GB overage would be 2 1GB overage blocks so $15 + $15 =$30
Minimum threshold fixed. Thanks!
It's not really a fee, it's a service, they provide extra data to people that go over for a pre-approved price that you agreed to when you signed up. The only problem I see with any of it is the lack of an option to opt-out from automatically receiving the extra bandwidth. People that exhaust their data frequently have no excuse for not upgrading to a plan with more data.
Have the fine deducted from officers' compensation packages.
I bet real money that'll change their tune REAL FAST.
ELOI, ELOI, LAMA SABACHTHANI!?
My wife and I had the AT&T Family Share Plan with 2GB/month of data. Here lately, we came very close to to 2GB cap, and ran over a couple of times. So, after the AT&T Mobile Share Advantage plans came out, we switched to a 3GB/month plan and are saving $15.00/month on our bill. Say what you want, but this was a good, money-saving, deal for us.
FLAT fee including tax. Less than 48/month, unlimited talk/text, 6gb a month and I never use more than 4-5GB a month. No this fee, that fee.
because i'm familiar with the way americans mangle words, i understand "overage" to be a fee charged when someone goes over their bandwidth allocation. is that right? or is it a fee charged for being over the age of 18? perhaps they will eventually penalize users for NOT using their entire allocation each month. someone notify Chris Hansen, we've got underage criminals here.
I know I'm just yelling at the moon here, but overage charges should be commensurate with compensation for outages and bad service areas. If I pay 100x per gig of overage, then for every day I'm out of service, I should be refunded for 100 days of subscription fees.