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Verizon waves the full phone price stick to those who want to keep their unlimited data plan carrot

Posted: , by Daniel P.

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Verizon waves the full phone price stick to those who want to keep their unlimited data plan carrot
Verizon has been dealing with the fallout of CFO's Fran Shammo quick remarks at an investor conference that Big Red plans to weed those with grandfathered $30 unlimited data plans out this summer.

The carrier was quick to send an email explaining that things will happen gradually, and nobody will be forced to drop their unlimited plan. If customers want to keep their unlimited option, however, they will have to pay full price for a new handset, which for the high-end iOS and Android phones is often north of $600. Those who want subsidized $199 phones will have to wave goodbye to their unlimited option. 

Verizon's spokesperson Brenda Raney chimed in: "Customers won't be automatically moved to new shared data plans. If a 3G or 4G smartphone customer is on an unlimited plan now and they don't want to change their plan, they won't have to do so". Over time, however, when those contracts expire, everyone will have to move up to the tiered structure. Here's the full statement:
– Customers will not be automatically moved to new shared data plans. If a 3G or 4G smartphone customer is on an unlimited plan now and they do not want to change their plan, they will not have to do so.
– When we introduce our new shared data plans, Unlimited Data will no longer be available to customers when purchasing handsets at discounted pricing.
– Customers who purchase phones at full retail price and are on an unlimited smartphone data plan will be able to keep that plan.
– The same pricing and policies will be applied to all 3G and 4GLTE smartphones.
source: NYT

50 Comments
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posted on 18 May 2012, 04:12 5

1. BattleBrat (Posts: 1476; Member since: 26 Oct 2011)


You BASTARDS!!!

posted on 18 May 2012, 04:14 4

2. Non_Sequitur (Posts: 1111; Member since: 16 Mar 2012)


OH MY GOD, THEY KILLED KENNY!!

posted on 18 May 2012, 07:20 4

11. Mxyzptlk (Posts: 14193; Member since: 21 Apr 2012)


Maybe Verizon should give a pack of tissues when people update their contracts from all the crying.

posted on 18 May 2012, 19:07 1

33. VZWuser76 (Posts: 4469; Member since: 04 Mar 2010)


Considering this shared data plan will kill off a lifetime promo we have that saves us around $100 a month, you bet I'm upset.

posted on 18 May 2012, 13:31 3

27. ap1989 (Posts: 145; Member since: 12 Oct 2011)


SUCK MY STICK VERIZON

posted on 18 May 2012, 04:38 4

3. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


And Verizon keeps backpedaling. Keep up the outrage, they will back down.

posted on 18 May 2012, 07:18 3

10. Mxyzptlk (Posts: 14193; Member since: 21 Apr 2012)


No they won't.

posted on 18 May 2012, 07:58 3

14. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


Sure they will. One good thing about Verizon is that if enough people call them out for a stupid policy they will acquiesce.

posted on 18 May 2012, 09:42 1

20. blade19 (Posts: 61; Member since: 29 Apr 2011)


I think Sniggly is right. This is unrelated, so sorry for that, but as an example look at what happened to Netflix and the outrage they caused.... They kept backpedaling. Keep the outrage...

posted on 21 May 2012, 18:33

46. Mxyzptlk (Posts: 14193; Member since: 21 Apr 2012)


You're the only one backpedaling here. It's called a business. They make money. They make decisions to make more money by cutting expenses.

posted on 18 May 2012, 15:43 1

31. items17070 (Posts: 70; Member since: 20 Dec 2011)


your right, and if everyone whould have the same attitude, then verizon wouldnt be pulling this crap!

posted on 19 May 2012, 14:10 1

40. Baseballer (Posts: 132; Member since: 07 Dec 2011)


They will listen if we ALL tell the company's what we want. Dont let them dictate what we 'need' WE should dictate them because we are the ones that should be controlling them. We, as the consumers have the power to change things if we work together, and voice our opinions.

posted on 18 May 2012, 04:46 2

4. longhairbilly (Posts: 66; Member since: 23 Aug 2010)


Here is what I don't understand. I remember reading that only 1-2% of people use over 5 gigs a month. They also reserve the right to throttle the top 5% data users.

So if the HUGE majority of the people are not abusing data, why not people keep unlimited?

posted on 18 May 2012, 06:53 4

8. remixfa (Posts: 14255; Member since: 19 Dec 2008)


because if they can Tier the data plans, they will get more customers on data. They can offer low usage plans to get people to buy a smartphone, and then when they start using it they get to charge overages.. and eventually the people that are having overages will go to higher plans.
Overages are big business at VZW

posted on 18 May 2012, 14:00 1

29. blahb (Posts: 48; Member since: 16 May 2012)


Really it all comes down to the stock market and how analysts value a wireless provider. Analysts used to predict a boom in smartphone adoption so to show the company was growing wireless providers enticed customers from their dumbphones into smartphones with data plans with incentives like unlimited data. This raised their stock prices temporarily, however analysts now see a boom in data usage which costs wireless providers more money to provide so as long as their users are on unlimited data they can’t show any growth. As they get new cool phones i.e. iPhone5, GalaxyIII and so forth, they will now require customers to change over to the tiered model for subsided pricing.

As these new hi-res phones are released and more free online services are provided a current iPhone4 subscriber using only 400MB/mo. could easily be using +4GB/mo. for the same price on an iPhone5 in a year’s time. So VZW must show analysts they are protecting themselves from their own contracts while putting in place a growth strategy moving forward, shared data plans. This keeps Executives happy with higher stock evaluations and larger corporate bonuses.

How do we avoid this as customers? Well it’s time to make a decision. Do you want unlimited data or carrier subsidized phone pricing? If you go for the unlimited data lock in Unlimited 4G /LTE before this pricing takes in effect and don’t use carrier subsides pricing on your 2yr upgrade dates. All that’s happening is that carrier subsidized pricing is being removed for “Unlimited Grandfathered” plans.

Lets hope that the Google Play Store comes out with some CDMA phones that can be used on VZW in the next 18 months. Currently they sell the unlocked GSM Nexus for $399 no contract. Hard to believe that phone was being subsidized on VZW for $299 just months before.

posted on 20 May 2012, 06:27

41. longhairbilly (Posts: 66; Member since: 23 Aug 2010)


Good point.

posted on 18 May 2012, 05:35 2

5. stilt (Posts: 63; Member since: 13 Jul 2008)


Thing that gets me is like longhairbilly if 1-2% us over 5gb then why not let those that are grandfathered atleast keep unlimited and if only 1-2% were using over 5gb before the new tiered BS then why did yall change it??? The reason is because they want us tired because they all know that people are using netflix, streaming movies, facebooking more than ever, and the new "4G" is a lot faster making people want to surf and stream more. And skype and face conference over the fast "4G" signal smh they give you faster speed but then slow you down in data, there is a older guy that I work with he doesn't really know who to work his phone much he has a rezound where we work is A LOT of down time so he watches youtube videos a bunch about 2 weeks into his bill cycle he is at like 3 some gb's then starts saying I can't use my phone can you look up this or that cause he knows I still have unlimited, to me you are crippling the smartphone craze, get everybody from basic phones to smartphones and preach " well you'll have unlimited and your teenagers can't rack up extra data charges then once you got everybody in the barrel then you change it to tiered BS. Wifi is in a lot of places but it is surely not EVERYWHERE by a long shot its not at my job or my grandmothers, in the country, at the park, on ya boat, in the bathroom somewhere public, not down a dark street when you have been stranded, not in a mom and pop store, etc etc. So it easy to say "wifi is everywhere people can just tap into that" NO ITS NOT, and how do you explain having a mother and father grandfathered on unlimited that were unlimited for like 6 years and now there teenage son or daughter wants a smartphone and they now have to be tiered when you add the line for them and can get charged $10 when they go over 4gb for another 1gb. You guys are making a lot of money off of us already you know how I know? Is because most people have smartphones now which include data packages which mean more revenue for you greedy companies so stop crying about covering cost and BS

posted on 18 May 2012, 06:06 1

6. chack_fu (Posts: 46; Member since: 19 Jan 2009)


Here's the thing.... Verizon is a service company. The more power you use the more your Comed Bill is, the more water you use the more your water Bill is, the more TV stains you want the more your cable Bill is. Service. The more you drive the more you pay for gas. If you don't want to pay more for gas, drive less.

If your not a high user your not going to be paying more your still paying $30. If your a high end user you'll pay more. This won't change a majority of peoples bills at all.

Just wait for 2 years from now when data is the only thing you pay for. No minute plans, no text plans strictly data plans with the same usage your using now.

Just wait till land services start tier'ing their data plans imagine the uproar then.

posted on 18 May 2012, 19:21

34. VZWuser76 (Posts: 4469; Member since: 04 Mar 2010)


Really, becuase we have a promo (supposed to be lifetime) that gives us a $20 discount per line as long as we keep a data plan on them. Since there will only be one charge for data, by account instead of by line, we lose the promo and it costs us an extra $100 a month. That's $2,400 over the life of a contract. So how does that not affect our plan cost?

Also, we haven't seen what the costs for data will be. There are a few optimists who think it might be better, but looking at how Verizon has treated customers over the last year & a half (axing NE2, 1 year contracts, annual upgrades, unlimited data, & adding a $30 charge for upgrading your handset) I don't see how a person could be optimistic. I checked out AT&T, & their minimum data package is 3gb for $30, where Verizon is getting the same money for 2gb. At this point their coverage is all they've got going for them. I'd be better off going with a tablet with a data package & using a prepaid carrier for phone like StraightTalk that uses Verizon's network, and costs $45 a month completely unlimited if we lose that promo.

posted on 18 May 2012, 21:22

36. jjnbbills12 (Posts: 18; Member since: 30 Dec 2011)


you can keep the promo. just pay for a phone. its simple. i promote paying full price for a phone.

posted on 18 May 2012, 06:30 4

7. BuckeyeCadet86 (Posts: 78; Member since: 26 Oct 2011)


Thank you Verizon, you just made my rezound worth a whole lot more for resale

posted on 18 May 2012, 06:59

9. iShepherd (Posts: 38; Member since: 17 Oct 2011)


These carriers don't care about heavy data users. Their capped plans are designed to catch even light data users. Assume a 5gb plan: If you use 100 mb one month and 5.1 gb the next month, you just paid more for your data than someone who used 4.9 gb each month for both months.

posted on 18 May 2012, 07:21 1

12. I_Slap_Fat_Kids (Posts: 40; Member since: 04 May 2012)


LOL, that's what Craigslist is for.

posted on 18 May 2012, 07:31 1

13. dcgore (Posts: 228; Member since: 24 Feb 2012)


We, Americans, have been spoiled. A dollar something gasoline, heavy subsidies and unlimited data on our phones.
It's fine. I'll just save a bit more money and be more usage consious.

posted on 18 May 2012, 09:23

17. rallyguy (Posts: 620; Member since: 13 Mar 2012)


How do you save money?

posted on 18 May 2012, 10:05

21. Captain_Doug (Posts: 1017; Member since: 10 Feb 2012)


Dollar something for gasoline? Maybe in the early 90's.

posted on 18 May 2012, 15:34 1

30. items17070 (Posts: 70; Member since: 20 Dec 2011)


last time i saw gas at $0.99/gas was summer of 1999

posted on 18 May 2012, 08:02 1

15. JunitoNH (Posts: 1896; Member since: 15 Feb 2012)


@chack

I understand your points. However, carriers keep contradicting themselves. If data, bandwidth is an issue, why not allow subscribers to connect their phones without a data plan? Secondly, moving from 3G to LTE will definitely cause more overages. Moreover, LTE pipeles, should be able to handle consumer demand when fully implemented. How much are text SMS costing the carriers? especially with all the free text apps available in both markets.

posted on 18 May 2012, 08:54 1

16. chack_fu (Posts: 46; Member since: 19 Jan 2009)


I agree... pay full retail, no data required, use wifi (America will not pay the price of full retail). The problem is people will use it wirelessly then complain about the bill that they receive that they were notified about 3 times during the month thru text and email, that they chose to ignore.

Problem is things are changing in technology and wireless technology is where its at. Verizon holds a very very strong position with their footprint. You're either a leader or a follower and I think Verizon is leading the charge.

posted on 18 May 2012, 09:28

18. rallyguy (Posts: 620; Member since: 13 Mar 2012)


One good thing is they give the option of using what ever phone you want with your plan. For a long time Sprint SERO customers were stuck with old phones and you could not get a new phone on that plan.
Of course that plan is $30 a month 500 minutes, and unlimited everything else. Then for a $10 monthly upgrade you could upgrade to the new 3G phones.
Maybe Verizon will do something like that instead? Of course Verizon is only talking about data here, not the plan itself.

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