Skip to comments.Verizon fumbles on “kill unlimited data plans” damage control
Posted on 05/17/2012 11:24:22 PM PDT by F15Eagle
Yesterday, at the J.P. Morgan 40th Annual Technology, Media and Telecom Conference, Verizon EVP and CFO Frank Shammo mentioned that his company would be forcing customers away from their grandfathered unlimited data plans. The decision is purely financial: "A lot of our 3G base is unlimited. As they start to migrate into 4G, they will have to come off of unlimited and go into the data share plan. And that is beneficial for us for many reasons, obviously. So as you pick what tier you want to be and we think that there will be some price up in those tiers."
After catching a large amount of heat from consumers, Verizon released a statement as an attempt damage control. The only problem: The statement is essentially a non-statement that confirms or denies nothing.
"As we have stated publicly, Verizon Wireless has been evaluating its data pricing structure for some time. Customers have told us that they want to share data, similar to how they share minutes today. We are working on plans to provide customers with that option later this year. We will share specific details of the plans and any related policy changes well in advance of their introduction, so customers will have time to evaluate their choices and make the best decisions for their wireless service."
Some media outlets are reporting that Verizon is backpedaling, but those of us here at Tecca see no evidence of that. The fact that the company is saying nothing specific about its plans to kill unlimited data plans seems to suggest that, indeed, unlimited data plans are on the chopping block "later this year."
(Excerpt) Read more at news.yahoo.com ...
woops... just like the 5 dollar fee thing...
Sprint has unlimited data...
Sprint sucks in my area (and just in general in my book) I left them after 13 years for T-mobile. Do I have unlimited data? sort of. 2 gigs at 4g speed then as much as i want at 2g speeds.
I thought unlimited was not being offered any more as far back as 2010.
5 gig is plenty, IMHO, unless you’re watching quite a bit of video at higher resolutions.
Might as well get a cheaper wireless plan for 2 gig, IMHO, as cable is so much better at home (as long as you can get it).
Maybe I’m old fashioned, but I just use wireless if I’m out and about and want to look something up, find something, log in to something, etc.
My husband and I still have unlimited with AT&T but the 3 phones we’ve added to the family plan in the past two years didn’t get it. Teen daughter went over once, cost $10 more that month. They’re all I-phones if that makes a difference.
I have Sprint Everything 450. I listen to the radio all day on my internet connection and my data usage is through the roof. Coverage is a little spotty and nonexistent at my house, but I have an Air Rave to boost my signal at home. Coverage will only continue to get better. My bill is the same every month. I think Verizon is shooting itself in the foot. Charge your customers for access, not the data.
What’s with these companies?The price of the networks and the Performance increases in networking equipment are dropping.Why the hell are they raising prices?when the technological improvements would allow them to cut prices and increase the performance of their data networks.
It's a phone, not my best friend.
Two years later, and it STILL feels good to have told the thieves at Verizon to KMA !
But NOT FREE.
Why the hell are they raising prices?when the technological improvements would allow them to cut prices and increase the performance of their data networks
Unlike in government accounting where if something costs more the taxes are just raised, new better faster equipment actually has to be PAID FOR in a private company, and there is a real capital and usage cost associated with network usage. Unlimited users represent a significant network load that has to be paid for somehow. You don't get free unlimited anything for a simgle price As more and more android and iphone users go on the system, more and more bandwith demands are made, and that costs real money. Oh and BTW how much do you think Apple charges Verizon and AT&T for an iPhone?
It is a bandwidth issue. That and every time they change technologies (3g to 4g to LTE), they have to upgrade radios in the tower. As the Smart Phone has gotten more popular, the bandwidth has been sucked up. The cell companies have struggled to keep up with their own technology.
I don’t believe Sprint will be able to continue giving unlimited data forever. Right now they are still a relatively small cell phone company with a much smaller subscriber base than the “Big Two”. As their coverage increases and their subs follow suite, they will find themselves in the same boat and will have to start charging for data service.
I also use internet radio as my job has me covering two states. If I were to pay for data, it would be gone in a matter of days and my bill.... oof.
All I wanted in a new phone with a more readable display & clearer sound. Thank you, ATT salesman, for selling me so much more!
The phone is more of a toolkit, with far more tools in it than I could possibly carry individually.
My Phone has 60+ apps on it now, all but one was free, & it cost 99 cents. News, sports, weather, stocks, games, Radio/TV/movies, music, navigator, US white & yellow pages, restaurant finder with menus & reviews, calendar, alarms, bar code reader, tape measure, & level, just to name a few.
One of the amazing advantages of a smart phone over a laptop is that the phone “knows” who you are & where you are in relation to almost everything else in the world. That is a great asset on the road or just trying to find a product or service near you. My Iphone has saved me mucho dinero by telling me where I can buy a product or service cheaper, just down the road, with directions, store hours, web site, & phone number. If you are buying a big ticket item, it would be foolish not to take advantage of such an on-the-spot service.
If you are the least bit curious about the incredible abilities of a smart phone, take a look at the apps available for the Iphone at the Itunes Store on the net. Frankly, I was astounded what my phone could do! And many apps are FREE, or cost only a dollar or two!
I would never use them again. Once was enough for me.
4G for 2 gigs, and then As much as you want at 2G speed?
Wow, so you get to take the lead cheerleader to the prom, be seen with her, dance with her, maybe even enjoy some punch and perhaps a little make out action at the dance, but you have to go home with the socially awkward, overweight, acne ridden, Twighlight Saga Fangirl..
That’s a winner in my book.
Because they are still paying off massive investments in building out those networks, which are not even completely built out yet.
Not saying they aren’t money hungry bastards too, but don’t underestimate how much it costs to revamp an entire network.
I guess you can look at it that way.. I look at it this way.
Sprint 180 a month for two lines, less than 2gig a month data useage. 1500 minutes shared (we had gone over more than once) older out dated phones.
TMobile 110 a month for two lines, likely still going to use less than 2 gigs a month, UNLIMITED minutes (so no overages) new phone, better phone.
So I feel I traded the socially awkward, overweight, acne ridden, Twighlight Saga Fangirl in for the prom queen.
Verizon has been doing the cyclical “screw the customer” thing for years - got its hand slapped some years ago and was forced to recoup. Must be Democrats running the place - they can’t seem to help themselves.
——The phone is more of a toolkit, with far more tools in it than I could possibly carry individually.-——
Yup. And if you have an on-line business, like I do, it’s even more than a no-brainer. It’s a necessity.
As you use it more, you find more uses for it. I love watching Netflix while my wife is shopping 8-)
Not defending Sprint, but claiming unlimited 2G as a perk is amusing to me.
Might as well go back to a clamshell phone and WAP at those speeds.
But still ZERO chance of gettin' tangled up with Verizon again ! LOL
When companies start billing gimicks to obviously screw customers, it says it is a time to change the CEO.
Will verizon exist in 12 months?
Sprint is already stuggling to survive.
Verizon just succeeded in demonstrating a BAD example.
It seems the per minute and bandwidth model is a dinosaur.
I agree with “per minute” being a dinosaur.
As for the bandwidth issue, it’s a little more complicated. Cell phones have gone the way of the computer. You buy one and three months later it is out of date. We, and the cell phone companies strive for better, stronger and most importantly, faster. In the past 10 years, there has been 2G, 3G, and 4G along with a few lesser networks. By the time the companies get an infrastructure strong and stable enough to handle the amount of subscriptions, a faster service is invented and they start over again. On top of that, the amount of smart phones being purchased has risen astronomically over the past five years.
It would be like having 30 people come into your home, log onto your internet and all start streaming movies. It would slow your network down immensely. Your only recourse would be to get a faster service or better “radio” (from 802.11B to 802.11N) or a combination of both (or kick em out). Since the networks can’t keep up with the technology, time constraints as well as the cost, their alternative is to charge by the size of data being used.
The bad thing is, it is easier to take that step “backwards” by charging for data plans. When and if they ever stabilize the infrastructure, they will probably not change back to an unlimited plan as quickly....
If your a data hog Sprint is the home for you. Me, I do not go over 2 gigs in a month, so i am not all that worried about it.