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Verizon to begin tiered data pricing later in 2010?

Posted: , by Alan F.

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This article contains unofficial information.

Verizon to begin tiered data pricing later in 2010?
As expected following AT&T's decision to end unlimited data pricing, it appears that the nation's largest carrier will followed suit. Comments from Verizon CFO John Killian has led to speculation that Verizon will start the tiered data pricing when it begins offering 4G LTE service later this year. The carrier has been testing LTE in some major cities and plans on covering 100 million people with 4G by the end of 2010. Only 17% of Big Red's current customers are smartphone users and the executive sees this running up to as high as 70% to 80% over time. Besides more smartphone users, newer models of handsets will be offering more bandwidth busting features such as video conferencing. Currently, the carrier's customers are using 600 to 800 megabytes of data monthly. Eventually, unlimited pricing will become an option that Verizon will not be able to afford offering to customers and the thought is that the earlier the change is made, the easier it will be for customers to become acclimated to it. As CFO Killian said, "We will probably need to change the design of our pricing where it will not be totally unlimited, flat rate." While there was no talk of what a tiered plan would look like on Big Red,  AT&T's new plan features two options. A $15 monthly charge allows the user to use 200MB of data per month and if the user exceeds the cap, he can pay $15 for another 200MB of data that is good only for that pricing cycle. The 2GB per month plan costs $25 per month- $5 less than the current unlimited pricing schedule- with an additional GB costing $10.

source: BloombergBusinessWeek

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posted on 20 Oct 2010, 01:47

1. Dark Asgard (Posts: 44; Member since: 01 Apr 2010)

So droid x is comming june 22nd now?

posted on 19 Jun 2010, 15:13

19. PapaJay224 (Posts: 866; Member since: 08 Feb 2009)

I don't personally see this happening. When has Verizon ever "followed suit" to att. Good they cut there unlimited data, more customers for us. That was a bar competitive move forth nations "fastest" 3g. I say come one come all, to the network that can handle your bandwidth and give you unlimited.

posted on 19 Jun 2010, 16:09

23. JackFace (Posts: 190; Member since: 03 Nov 2009)

If not now, once LTE is Launched... Guaranteed.

posted on 19 Jun 2010, 01:18

2. techtechne (Posts: 14; Member since: 17 Jun 2010)

Can't wait to see the tiered pricing, haha. It's funny how things change. Now the only people that can complain are Sprint/T-mobile users.

posted on 20 Jun 2010, 16:35

34. Kiltlifter (Posts: 742; Member since: 11 Dec 2008)

I forsee Tiered pricing on LTE devices and Phones. I think the 3g phones will be safe. But only time will tell.

posted on 19 Jun 2010, 08:18

3. Cazwell (Posts: 27; Member since: 09 Oct 2009)

Through the 1st 4 days of my bill cycle, I've used 259mb's of data... staying on my current pace, I'm just under 2gb's for the month, but thats on my 'lowly' HTC Droid Eris! That usage is going to explode once I'm on a screen over 1" larger (Droid X), where I'll have the faster processor to handle more multimedia streaming and online gaming... uh oh. I know its not feasible, but keep the unlimited plan Verizon! (or at least grandfather current users) :)

posted on 19 Jun 2010, 11:59

9. cc16177 (Posts: 312; Member since: 09 May 2010)

I've used about 3gb so far... screw tiered pricing!

posted on 19 Jun 2010, 16:12

24. JackFace (Posts: 190; Member since: 03 Nov 2009)

On AT&T, you are able to keep your Unlimited Data Package if you have one, and I would assume Verizon will do the same. This really screws new customers and customers upgrading to smartphones who want to use a great deal of data.... Really screws them.

posted on 19 Jun 2010, 09:15

4. testman22 (Posts: 338; Member since: 03 Nov 2009)

The 2 GB is extremely unreasonable given the capabilities of new smart phones, and the apps they support. AT&T has a data calculator on their website http://www.att.com/standalone/data-calculator/index.html If you do 3 hours of listening to pandora a day, that already puts you at 2 1/2 gigs. If you do just 50 minutes of video a day, thats 3 gigs. SO thats almost 6 GB and that doesn't even start to count your emails, web browsing, app downloads,etc.... The convenience and luxury of having a smart phone is being able to have internet at your fingertips. It should be an all-in-one device for movies, music, web surfing, nav, etc. Another thing I don't get is that LTE is supposed to extremely increase the bandwith that was allotted in 3G, So why do they need to "conserve" all this data, when this new network can support 10 times the space.

posted on 19 Jun 2010, 10:46

5. VSS_55 (Posts: 43; Member since: 05 Jul 2009)


posted on 19 Jun 2010, 10:50

6. freemarketeer (Posts: 28; Member since: 05 Jun 2010)

It is true that 4G is more efficient in the manner in which it delivers data however you also have to take into account that speeds and demand will increase as well which offset the bandwith increase. What remains to be seen is how the tiers will break down. I can foresee Verizon offering more data at a lower price since they will have the capacity to do so. I also foresee in about 2-3 years the overall wireless plan structure changing where everything is billed as data and you would simply buy a block of it and can use it any way you see fit.

posted on 19 Jun 2010, 12:52

12. xmguy1 (Posts: 68; Member since: 04 Nov 2009)

I used the AT&T data calculator. I list to on average. 1 , 1 1/2 hours per day. So I've already used my WHOLE months alotment in ONE DAY! Screw that if they do not grandfather. I may be looking elsewhere.

posted on 19 Jun 2010, 15:18

20. PapaJay224 (Posts: 866; Member since: 08 Feb 2009)

I think if there is any tiering going on, Verizon may charge 10$ more for 4g and same price for 3g to keep lower users on slower speeds and power users on the data 4g pipeline. IMO

posted on 19 Jun 2010, 11:19

7. Caligula (Posts: 20; Member since: 12 Jun 2010)

I hope the iPhone is coming

posted on 20 Jun 2010, 09:30

31. cellgeek82 (Posts: 518; Member since: 20 Dec 2009)

With all these Android devices, who needs iPhone?

posted on 19 Jun 2010, 11:42

8. downphoenix (Posts: 3165; Member since: 19 Jun 2010)

I hope Sprint and T-Mobile decides to leave the caps off, as this is getting ridiculous. Not surprised Verizon stooped to this level, they are the most profitable of the carriers, and yet are the most expensive carrier you can have... coincidence?

posted on 19 Jun 2010, 12:39

11. ICanAffordVZW (Posts: 123; Member since: 15 Dec 2008)

You get what you pay for.... VZW can either go to tiered pricing so that only some customers are affected, or go up on their entire pricing structure and everyone is affected.

posted on 19 Jun 2010, 13:07

14. downphoenix (Posts: 3165; Member since: 19 Jun 2010)

It is arguable that you get what you pay for. Sure, Verizon may have the best ratings as far as dropped calls and overall reliability, but you can expect we will see a downturn at least temporarily for this when they launch their LTE network. They plan to launch almost as many markets when its available as Sprint has total for the Wimax, there's going to be problems with this on the onset.

posted on 19 Jun 2010, 12:38

10. xmguy1 (Posts: 68; Member since: 04 Nov 2009)

I just hope they will Grandfather users if they stay where they are. My Droid works fine and I play too much Internet radio to be capped. Unless they offer atleast 3-5GB for the same $29.99 I'm not sure what I will do. If Grandfathering is allowed then I'm staying put.

posted on 19 Jun 2010, 12:57

13. theGodpapa (Posts: 181; Member since: 15 Dec 2009)

I am smoking 2 gigs every month, right now I well over 3 gigs for this month, and still have 8 days left before my billing cycle turns over. And thats my average, I stay on my Incredible and when I had my Moto DROID using the net for listening to Yankees games through MLB At Bat, downloading apps from 3rd party sites, reading my favorite forums and websites, g chatting, playing all the emulator games for super Gnes, listening to tons of music....and so on and so on....point is , these habits are getting worse as the months go on, so 2 gigs will never suffice

posted on 19 Jun 2010, 13:20

15. MalakiMills (Posts: 257; Member since: 15 Jun 2010)

I am going to have to sign up for unlimited before this pricing kicks in, oh and one question. Does using wifi instead of the 3g on the smartphones use data???

posted on 19 Jun 2010, 14:37

17. Whateverman (Posts: 3262; Member since: 17 May 2009)

No. If you use any WiFi connection the data is being supplied by a different source. So you would be good.

posted on 19 Jun 2010, 14:30

16. theGodpapa (Posts: 181; Member since: 15 Dec 2009)

WIfi is free access to the internet, so no, using wi fi doesnt use the 3g service and is not chargeable.

posted on 19 Jun 2010, 15:31

22. MalakiMills (Posts: 257; Member since: 15 Jun 2010)

oh, well freaking awesome, i'll hardly ever need the 3g then. Thanks.

posted on 19 Jun 2010, 18:12

25. JeffdaBeat (unregistered)

Actually, I hardly ever need 3G because there is Wifi everywhere...

posted on 19 Jun 2010, 14:50

18. Verizon (Posts: 22; Member since: 14 May 2010)

I hate to say this but if Verizon goes to the tiered data billing i will get rid of my black berry and go to a crappy flip phone and just carry my iPad with my mifi at that point.....

posted on 19 Jun 2010, 15:24

21. PapaJay224 (Posts: 866; Member since: 08 Feb 2009)

It's a stupid move, we won't do it. I know if there is a change Verizon will Grandfather for sure, but I see the price of 3g staying the same and 4g increasing.

posted on 20 Jun 2010, 09:11

30. DonLouie (Posts: 594; Member since: 22 Dec 2008)

PPJ24, they already said themselves the tiers are coming and now it's even closer with the 5 LTE test markets that will be coming soon.

posted on 20 Jun 2010, 04:30

26. locoboy808 (Posts: 53; Member since: 08 Oct 2009)

if they stop unlimited data i say f---k Verizon im not going to pay all that just to have a cool phone... they are not going to have anymore buyers i tell you that much.. i can get Mobi pcs for $40 unlimited text and talk and web and they can port over any Verizon cell phone ........... if Verizon keeps this up.. that's where im going........... my home internet is that much $30.. you think im going to pay that much for that small a----s phone nut's lol anyways i say we keep calling and emailing verizon.. let them know if they do this ( we are gone.) they need to make it cheaper thats what.. i dont need no 4g for a small lil phone.

posted on 20 Jun 2010, 04:37

27. locoboy808 (Posts: 53; Member since: 08 Oct 2009)

i say keep the phones you have now if you get a 4g then you have to pay it but if you had phones before 4g i think you can keep your old plans

posted on 20 Jun 2010, 04:42

28. locoboy808 (Posts: 53; Member since: 08 Oct 2009)

i mean if not I'm going to sue their asses lol and im going to win you just cant change it like that i know that much and make you pay it nutts now whos with me lol lol

posted on 21 Jun 2010, 07:12

36. videobandit (Posts: 26; Member since: 17 Jun 2009)

If you're with verizon wireless, you might want to read your contract. In most, if not all, wireless contracts you agree to arbitration.

posted on 20 Jun 2010, 08:33

29. numberonenygfan (Posts: 211; Member since: 19 Oct 2009)

i work for verizon wireless.. its a shame to say this company only cares about the money. if att gets any sort of numerical edge weather its gross ads or increased revenue they will go after them hardcore. You all saw the add war no? same concept here. Verizon doesnt need to do it because they cant handle the web support on the devices. but by teiring the pricing at att, att will make more money. Verizon doesnt want them turning a profit of any kind, so they will do the same thing. Even if it hurts the consumer. Trust me I know first hand that cell phone companies dont care about customers as much as they care about money..im not going to get into politics but lets just say im a pretty discruntled employee and if they make me change to a teird plan, im going to a simple feature phone. tierd pricing = less smartphone customers = less loyalty = less net adds= vzw, att and anyone else who follows suit sucking!

posted on 20 Jun 2010, 12:06

32. dandirk (unregistered)

You are right about the money but wrong about VZW reasons for switching to tiered pricing. VZW and at&t are the 2 big boys on the block, they essentially don't care about T-Mobile or Sprint. They compete only with each other. So when one makes a move the other is not far behind... look at ETF fees, vzw switched to $350 ATT shortly after went to $325 I think. VZW isn't changing to tiered service to deny ATT of monies. If they were, then vzw would keep unlimited plans to steal customers. VZW is going for more cash, simple as that. Since ATT went with tiered pricing, VZW wants to get in on the action because they know they don't loose anything for matching ATT policies. Customers won't leave vzw to go to ATT because ATT has the same tiered pricing. VZW then gets more cash. I won't go as far to say this is the case, but its almost like price fixing (I am sure both companies lawyers make sure it technically isn't). ATT and Verizon match each other in pricing (to a degree) but still compete on service...

posted on 20 Jun 2010, 13:37

33. corporateJP (Posts: 2431; Member since: 28 Nov 2009)

All these companies are on the shameless money-grab program. I just love, though, how VZW jams it down your throat that you absolutely need some type of bull$hit data or smartphone when you are a customer, and if you don't want it, they're like "f*ck you". I feel bad for new customers coming in if they move to this like AT&T did. I hate AT&T worse than Verizon, but they are starting to catch up.

posted on 20 Jun 2010, 18:27

35. dandirk (unregistered)

I haven't read to much about how ATT;s Tier policy is going... Are they at least offering... Official widgets/apps that report your current usage? Options in service to disable said feature if you hit your limit? At minimum text messages with warnings of 90% usage or something?

posted on 30 Jun 2010, 09:24

37. shrop486 (Posts: 12; Member since: 10 Dec 2009)

The idea for grandfathering obviously makes sense, but won't everyone that gets grandfathered in have to pay full retail price ($500 or 600) for the next phone they get to keep that unlimited plan? If you want the phone at the cheaper, subsidized price then Verizon is going to make you upgrade to whatever the new plans are. I'm sure AT&T realizes this too. In a few years there won't hardly be anyone with an unlimited plan because they don't want to pay huge price just to keep their plan. But I guess that's what Europe does so who knows.

posted on 14 Feb 2011, 00:12

38. dude (unregistered)

shrop486, you don't lose your unlimited data plan when upgrading at ATT. you can opt to keep it.

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