Verizon is planning on implementing tiered data pricing in the coming months
According to the Wall Street Journal, the number one wireless carrier in the country is planning on implementing tiered data pricing some time in the coming months. Verizon's Chief Executive, Ivan Seidenberg, said that we can potentially see in the next four to six months a new form of tiered pricing. Now it's rather difficult to say if it's in regards to their upcoming LTE network, which is expected to go live by the end of the year, but it wouldn't surprise many people if it indeed has a lot to do with this new revelation.
When looking towards the competition, Seidenberg wasn't in agreement with how AT&T is setting their tiered data plans – going on to say that AT&T isn't valuing their data. It wouldn't surprise anyone at this point if 4G networks, that are becoming more prevalent, will become the major force in bringing forth tiered pricing – but we'll all see soon enough.
source: Wall Street Journal
1. JeffdaBeat (unregistered)
I think we could all see this coming. Whether we like it, this is the future of the web, not just wireless, but wired too. If done fairly, this is a good thing. Most folks use the web on their phones very little...even on their home computers. For them to be able to pay less and have the ability to carry around a smartphone is awesome. I've seen so many people interested in Smartphones now that AT&T's pricing has gone down for service. But for folks who use their phones a lot, of course, their cost will go up...but you pay for what you use
2. PapaJay224 (Posts: 866; Member since: 08 Feb 2009)
As long as its fair, agreed. My comcast has a 500GB data cap on it, its a little concerning considering how much I use it, but I have never reached that limit. We have to consider too that 4G is going to be competing with Comcast and Qwest for wireless internet now since it will be just as fast, so in that competition they need to make sure they are offering unlimited data like those companies. People will now begin replaceing home internet monopoly's in the local areas for a Verizon connection they can trust. This is a lot bigger game changer than most people consider. See Sprint's Wimax has clear and Clearwire is an alternate to home internet but its limited to data speeds and areas, eventually no matter where you are youll be able to have LTE at your fingers. No more moving your internet provider from COX, to Comcast, or Charter and Qwest, it will just be one constant. With that being considered I dont think the tierd data is going to be what people think. I think its going to be like 34.99 for 4G and 24.99 for 3G. You tier it with out capping it, you just need to target your customers, and I think Verizon is the best at that. Hopefuly phone arena doesnt think Im trolling.
4. tomorrowisnow (unregistered)
Fair? Are you guys nuts? VZW is a business. The point of a business is to make money. The only thing VZW doesn't agree with ATT tiered structure is that $15 gives 200MB of data. Remember, VZW sold people aircards for $40/month for only 50MB of data. Say what you will about Sprint, but they are a profitable company and have revealed the wizard in Oz. It is a large company that has dramatically lowered its prices and is profitable. This shows you that the true wizard is that VZW has been ripping people off for years. When LightSquared comes online as a 4G terestial/celestial network wholesaler, real competition will take hold and a company like VZW is no longer going to grow fat off the hog.
8. WKlingbeil (Posts: 215; Member since: 26 Dec 2008)
Okay VZW salesman, LTE isn't going to just magically appear worldwide, they're going to have to build it out just like Clear and Sprint are doing with WiMax. Regardless of VZW's propaganda that they've been feeding you, LTE won't be any faster, nor will it be anymore widespread than WiMax. Once 802.16m is released and implemented, WiMax is just as fast as LTE. Not to mention, Sprint owns 3 times the spectrum of WiMax as you guys do LTE, so good luck when you're having the network lock up issues AT&T has now. Do some real research instead of just blurting out what VZW's release trainings are, because of course your employer is going to give you biased information that leaves out all the facts. The only real benefit of LTE is the worldwide use of it.
10. WKlingbeil (Posts: 215; Member since: 26 Dec 2008)
?? How is this a reasonable question? VZW has over $60 billion in debt (as of 2008, so that number is substantially larger now), yet only has about $20 billion in cash/assets. Therefore, VZW is worth -$40 billion in real money. Sprint has approximately $20 billion in debt with about $12 billion in cash/assets, therefore Sprint is worth -$8 billion in real money. So, what's more, -$40 billion, or -$8 billion? It would take VZW about 15 years to make up that debt without spending much of anything, which would be impossible for a company that spends like they're run by Nancy Pelosi.
12. JeffdaBeat (unregistered)
Hey, I never said they were GOING to be fair...I said IF. Now, as for Verizon and LTE...WKlingbeil is absolutely correct. WiMAX and LTE can theoretically hit the 4G standard of 100mbps so which you go for isn't the real issue. And indeed, Verizon is doing it a little different than Sprint. Verizon isn't debuting it market by market, but instead doing a bunch of markets all at once. Still, you will just wait longer periods of time before they announce the new markets for LTE. But don't be fooled...LTE just like the future of all internet will be tiered. Sure, it will provide faster speeds and that's great. But it won't be an all-you-can-eat buffet. And you guys can stop the BS about "That's why Sprint" or "That's why Verizon" is a good value. ALL of these companies will implement these rules going forward. The only ones that may not are going to be regional carriers. All the nationwide carriers will follow this because it's just smart for business, sucks for us, and makes no difference to most consumers.
18. gf (unregistered)
actually that is completely inaccurate. VERIZON COMMUNICATIONS has over $60 billion in debt (as of 2008, so that number is substantially larger now), yet only has about $20 billion in cash/assets. Therefore, VERIZON COMMUNICATIONS is worth -$40 billion in real money. Verizon WIRELESS has operated in the black for the last 5 years and in fact is the only thing keeping Verizon COMMUNICATIONS from going under completely nice try though
3. VZWstinks (unregistered)
Hence why sprint is still the king of data intensive smartphones....unlmiited FTW
5. achilles (Posts: 54; Member since: 27 May 2010)
Many people like myself use data on their cell phones. From internet music, to streaming video, or just surfing the web, i use about 11 gb of data a month. I dont want to be told how much i can use my phone. I dont want to pay a per gb rate on top of my texting and phone calls. Just wait until video calling on verizon! A 20 minute video call would use more data than some people use in a month. Then, my data usage will go even higher! I dont see how anyone on an android phone, like my Droid X, can use less than 2 gb per month. If you're reading this, you probably use over 1gb per month! Anyone have the Evo on sprint and use video calling? How much data do u use? Maybe sprint is my solution for tiered verizon pricing!
13. JeffdaBeat (unregistered)
Actually, they aren't telling you how much you can use your phone...you can still use your phone as much as you want...just be prepared to pay for it. I mean, no one tells you how much you can shop at the grocery store, but you have to be willing to pay for everything in your cart when you are ready to check out. Also, it's very easy to use less than 2GB. I am a heavy iPhone user...but I also have wifi everywhere. And that's no some joke about AT&T's nework. Even if I had a Droid X, I have wifi at home and at work. Even have it at my all my buddies' houses and connect it it automatically. Because of that, I use about 400 to 500mb a month. And Sprint won't be your solution forever. Yesterday they said they were monitoring the tiered pricing. But even if they didn't impliment it immediately and you and everyone else ran over to Sprint for their unlimited plans, they would soon switch to tiered pricing as well...just like they did their aircards two years ago. It's follow the leader in the wireless game guys.
17. VZWGuyFL (unregistered)
The plan for Verizon tiered pricing is not for it to be tiered by amounts of usage, but to be tiered by rate of speed and still be unlimited. Or at least that is what we are looking at as of right now.
6. Phonatic (Posts: 27; Member since: 16 Jul 2010)
The whole thing seems backwards to me. I remember way back when, AOL used to charge people per minute (sold in 30 minute blocks) and I recall hating that. Was ecstatic when they offered unlimited. I'd be fine with tiered pricing as long as one of those tiers is unlimited. Otherwise it's time to jump ship.
9. WKlingbeil (Posts: 215; Member since: 26 Dec 2008)
My question is why does Ivan Seidenberg keep coming out making statements about a company that he doesn't work for? Just because his company owns about half of VZW doesn't make him CEO of it too. I know Lowell McAdam was named one of the worst CEO's by Fortune Magazine, but does Ivan really have to step all over his toes like that?
11. Scuba447 (unregistered)
Ivan Seidenberg saying that AT&T doesn't "value" their data plans is a little scary. When I used to work at verizon the word "value" was used everytime they wanted to start charging more for services they already offered. When they got rid of connect plans, which offered unlimited data on non-smartphones, and started requiring the $10 data plans on their multimedia devices, we were always told to position the value of the new plans. That $10 that now only gives users 25 mb per month used to give people unlimited data on the old connect plans. I would expect verizon to follow a similar path with the smartphones... $30 a month for 200 mb or so and then raise the price even higher for anything above that. Thank god I'm grandfathered on my unlimited plan cuz you can bet the farm that prices are only going to go up.
14. hornetmx (Posts: 71; Member since: 12 Mar 2010)
I'll keep it simple. About 5 years ago, most of the smartphones were used by business. The iphone came, then the storm, etc, and the mentality was changed (by the wireless providers) that you need to have smartphone and the unl data is the best deal. You can ge DSL for line $9.99 to $19.99 and people are paying $20- $30 for the unl data on one smartphone???? 15 years ago, most people didnt have cell phones. Can you imagine being w/o one for 1 week? most people cant. Now you have to have one. Same thing with tiered data. There WILL be unl data plan. You put the tiered option to get everyone to the more expensive unl data option. Most companies do not want you to incurre overages charges (as incredible as that may seem). Thats how people switch companies (regardless of whether its my fault or not). Good or bad, its a capitalist/business mentality. Sprint could make a difference if enough people switch to their unl data plans, but too many people left them because of poor customer service and money wont fix that. It's not about fair, what I deserve, what im entitled, etc. If you think that way, you honestly have to reeducate yourself. It's a business....if you dont like it, dont buy it. There are reasons why VZW is #1 even though they arent the cheapest. I will pay for 4g plans if i can afford them. If i cant, then i wont. I wish I had a castle in Ireland with 365 cars too but i cant afford it. My 2 cents.
15. networkdood (Posts: 5248; Member since: 31 Mar 2010)
Remember that guy in the SISONS? Nelson? - "HA HA!!"