DROID X owners use 5 times more data; Verizon to begin tiered pricing?

DROID X owners use 5 times more data; Verizon to begin tiered pricing?
According to Verizon's Jennifer Byrne, the carrier's business development executive director, the Motorola DROID X, " is seeing something like 5x the data usage of any other device (on the Verizon network)." With the 4.3 inch screen, users are watching more video and installing more apps. Plus, since the phone has just been launched, you are getting the "Honeymoon" effect as new users are exploring all the things they can do with the phone. Once the Honeymoon is over, so to speak, we could see data usage slow down, but by then it might be too late. With rumors flying that Verizon is about to switch over to tiered pricing on July 29th, news like this is bound to get the suits in the boardroom thinking about ending unlimited data. After all, Bandwidth doesn't grow on trees, you know.

The speculation is that Big Red will end unlimited data plans next Thursday, although this would most likely affect only new Verizon customers. Like AT&T's data plan, Verizon would charge $15 monthly for 200MB and $25 a month for 2GB. Will this cause an exodus toward Sprint? As we reported, Sprint's CEO, Dan Hesse, has said that the carrier has no current plans to end unlimited pricing. All eyes will be on Verizon next Thursday.

Motorola DROID X Specifications | Review

source: AndroidCentral, examiner

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74 Comments

1. MattA

Posts: 2; Member since: Jul 23, 2010

You build, arguably, the best smartphone made to date, then you complain that people are using it too much?? What the hell did you expect would happen??? This will be a MAJOR hit to Verizon if they decide to charge for usage and abandon unlimited data.

2. adash13x

Posts: 20; Member since: Apr 08, 2010

i agree with you partner..... stupid CEOs!

3. ilia1986 unregistered

This kinda reminds you of some other carrier, now doesn't it?

4. JeffdaBeat unregistered

I think we have to admit that tiered pricing is in the future for all carriers. Verizon has been talking about it longer than AT&T which is why I was surprised when AT&T launched it first. Carriers are pushing their smartphones in advertisements more than they are their messaging phones or basic. So they shouldn't be surprised when most of the phones on their networks are smartphones. But, the all you can eat internet on cell phones are a thing of the past. Even folks who think their unlimited plans at AT&T are safe, all it will take is the launch of LTE and AT&T telling customers, you can keep your unlimited 3G plan or get a finite LTE plan...

11. SellPhones82

Posts: 569; Member since: Dec 11, 2008

Not all carriers...Sprint/Clear has been saying the complete opposite and has no plans of capping data usage. The fact that Sprint has three to four times the spectrum of VZW (the nearest competitor spectrum wise) they could and may built two 4G networks because they have the spectrum to do so. http://www.thestreet.com/story/10813139/1/clearwires-sweet-package.html

17. rehnhart

Posts: 103; Member since: Mar 27, 2009

@MattA I am not happy wiith it but Verzion has been discussing this for a while now. Verizon didn't release the Droid X and then decide to tier data. The phone companies let each other test out new plans and policies; if it goes well then they follow along. The reason they can is because Att customers finally excepted it and the whole thing died down and we move on to the next big upset. Verizon will do the same, people will be outraged, and people will find something else to be enraged at. Anyways, anyone that is thinking of upgrading should do so and be grandfathered in.

19. VZW

Posts: 24; Member since: Nov 02, 2009

No cap, but they are going to throttle it. Someone posted a inside company picture of the doc. T-Mobile is already doing it.

30. deadpool_ct

Posts: 18; Member since: Mar 23, 2010

@SellPhones82, But the one thing that you have to look at with Sprint is the fact that they are bleeding right now. They barely have the money to support their network, that is why they havent increased the network, and are thinking about a merger with T-Mobile. They may have the spectrum, but they sure as hell dont have the money to front for that second 4G network. If they happen to merge with T-Mobile, then they may have the funds to do so, but until then, they are stuck with the WiMax network. But I say, if the WiMax network didnt work for Mexico, why did a company in the US decide to go with it, when you connection speeds with LTE are looking at being 8-12 MBps. I think I will stick my Verizon and enjoy the data speeds, and not have to worry about Sprint deciding the jump on the bandwagon of LTE, and then have to wait for my LTE device to come out, especially since Verizon will have an LTE smartphone out by January.

35. numberonenygfan

Posts: 211; Member since: Oct 19, 2009

As an emp.. havent heard anything of this yet.. and im in sales were usually the first trained, but who knows thats not something they would need to give a lot of notice for so prob the day after wed get the memo. However, the smartphone world is taking over the world of cell phones and this change is inevidable. I dont think anyone expected it this soon and trust me if it does happen this month it was going to happen weather people were using more data on the x or not.

43. SellPhones82

Posts: 569; Member since: Dec 11, 2008

Sprint is considered the majority owner of Clear as they own 51% of Clear. The other 49% percent is Clear, Google, Intel, Comcast, Time Warner...all of which have pretty deep pockets. Sprint posted the lowest sub loss in 3 years in Q1 of this year (578k) the majority of which were iDen subs, and we will see how Q2 was next week but my guess will be around another half million. They will continue to loss subs until all the iDen subs have left. Sprint purchased Nextel for spectrum and spectrum only. They had to spend $750 million over 5 years to move 35 MHz of broadcast auxiliary service and are still in the processes of moving remaining half of the 800 MHz systems on their new frequencies. What good are faster data speeds when the carriers says you need to start using less, so you can reach 2GB even faster? What good are these "Super Phones" if you have to "be careful" with how much you use them? Yes you can use WiFi but LTE and WiMax are both going to be as fast or faster than a given Wifi hotspot you might connect to, plus you are paying for data so why are you using another data source? They cut the data you can use by 60% (5GB to 2GB) yet you the customer only gets a savings of 17% (based off current $30 data to $25 2GB cap). If that sounds like something you will "enjoy" then I have crappy deals for days I could sell you on. Sure 2GB is fine for some people now...but what about next year or the year after that. Every year the amount of data customers use goes up yet these new data plans are for 60% less data, how the hell does that add up? What do you do if Hulu or Nextfix apps start hitting? Those could be 500MB a movie so after 4 movies you are at your 2GB. This is a step backwards in my eyes, and would be like the cable and sat companies telling me I can only watch "X" amount of HD programming and will charge me extra once I reach that limit. I will take my unlimited Sprint data and then cancel my AT&T DLS while you pay $5 less for 2GB and still have to pay for your home service on top of that.

50. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

@MattA - nowhere in this article does it say that this change is happening for sure. Its all speculation even bein in the news no one from Verizon has confirmed or denied these rumors, so i would assume unlimited data until further notice. At&t has never been known for setting trends that other carriers follow...

52. SellPhones82

Posts: 569; Member since: Dec 11, 2008

When CEO Lowell McAdam says they are moving to tiered data plans, I'd say that confirms it. It's not a matter of if, it's when. May not happen until they launch LTE which would be early next year at the latest. Verizon confirms tiered pricing for LTE datahttp://www.boygeniusreport.com/2010/05/27/verizon-confirms-tiered-pricing-for-lte-data/

63. WKlingbeil

Posts: 215; Member since: Dec 26, 2008

They are bleeding? That's strange because they're a positive cash flow company meaning they don't build anything or spend money unless they have the cash for it. They're in about $21 billion now, but that's from previous blunders. They've got over $10 billion in cash/assets, so they've essentially got 50% of their debt paid off. You know VZW is in $63 BILLION debt? Not because they're not making money, but because they spend like their CEO is Nancy Pelosi. Yeah, VZW is bigger and makes more revenue, but you know what happens when companies get knee-deep in debt? Ask Fannie and Freddie.

69. VZDub843

Posts: 3; Member since: Jul 24, 2010

As an employee, I know that in Sales you are not the first trained. Tech is first trained, not store tech, call center tech....as we also get to play, troubleshoot, and provide feedback before the device official launches or never launches. At any rate if you payed attention to the company information...which you should not release...we are in no rush to stop unlimited data.

71. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

Who said the VZW was complaining about people using the Droid X's features?! It sounds more like a boast. People that have it, love the friggin phone and use it more. And my opinion is that VZW played AT&T like a fiddle. I saw a story a lil' while back that Big Red was going to start tiered pricing and make a shitload more money. Then boom, AT&T rolled out tiered pricing. There was a story shortly after that of a VZW rep saying they were happy with unlimited data and would be sticking with it for the forseeable future. As long as Sprint and T-Mo won't make the switch, Verizon's hands are kinda tied.

5. ChineseMuscle

Posts: 47; Member since: Nov 15, 2008

So if it's 5X the data usage now. What will it be like when FLASH 10.1 is released ? RASS CLAAT BWAY !

14. vzw fanman

Posts: 1977; Member since: Dec 11, 2008

i had flash 10.1.on my droid and my usage didn't significantly go up.

6. downbeat3

Posts: 13; Member since: Nov 05, 2009

Unlimited data has been a huge selling point for reps on the sales side and since our goal is 40% pdas (until that goes up) I think any statement from a CEO who is "surprised" about a data usage boom is bullshit! They knew what was coming. DROID

18. cemysh33

Posts: 12; Member since: Nov 05, 2009

I agree with you on that one. We have a few hundred business lines that our store is working with and they all want Smartphones with unlimited data. Talk about taking money out of my pocket! Thanks but no thanks. On a customer side I really hope not to see this go through or have it fail and revert back to unlimited because i easly hit 3gb a month on my Incredible!

7. som

Posts: 768; Member since: Nov 10, 2009

crazy tiered plans from ATT affected to all carriers and holding customers in the ATT prison everything are limited and they make big profit from those prison phone and data plans. No more unlimited data plan is crazy your smartphone is useless end to video and youtube viewing on the road. People must stop using ATT and other carriers go on strike to drop the tiered data plans and restore unlimited data plan.

67. JeffdaBeat unregistered

Verizon was the first company to talk about tiered pricing. That's why I was so shocked when AT&T implemented it first...

8. ChineseMuscle

Posts: 47; Member since: Nov 15, 2008

Is there a way to COPY text out of Gmail on DROID X ?

9. jskrenes

Posts: 209; Member since: Dec 11, 2008

I don't have a problem with tiered pricing. If the only option available for your minutes was unlimited, we'd have a class-action lawsuit filed by people who only use a few hundred minutes a month. There are a few criteria though: 1, keep an unlimited option, 2, don't charge extra for tethering. That one is huge, if I have 2 GB to use, it should be mine to use any way I want.

12. gambino37

Posts: 146; Member since: Oct 16, 2009

Well said. I think the options should remain. I, for one, would probably never come close to using 2GB of data. Kind of sucks that I HAVE to pay for unlimited when I guarantee I don't come anywhere near that much data usage. Totally agree on the tethering thing though. We pay for the minutes. Period. Don't charge $20 a month just to make use of them on another device.

26. WKlingbeil

Posts: 215; Member since: Dec 26, 2008

The problem with that logic is the cell companies aren't giving tiered options on data to save customers money. Do you think the limited data plans are going to be much cheaper than the unlimited option? Let me give you an illustration, with VZW's broadband cards, you can pay $59.99 for 5,120MB of access or $39.99 for 250MB. Really? $20 less for 1/20th of the data? That doesn't seem like a great deal for the customer to me. It just seems like a way to cheat the customer, not to mention, how much was the unlimited data plan when they had it? (Yes, I'm fully aware that those plans had a soft cap on them, but you still didn't have to pay for overages) It was $59.99, just like their 5GB plan, so chances are you're still going to be paying exactly what you paid for unlimited data with the limited plans. This isn't a way to give the customers options (even though they'll try to "position" it as a benefit to us like we're idiots), it's a way to use less of their network but charge the same. I would understand the limit if these companies' numbers weren't as amazing as they are, but the wireless industry is incredibly profitable. They have better profit than almost any other industry, yet they're still making more and more customer unfriendly policies. Do we not get mad when the oil companies raise prices citing "supply" issues, but they post record profits in those quarters? Of course we do, because it's about greed, there's a difference between profit and greed. I am a former employee of VZW, and still work in the wireless industry, so I'm not some random customer who's just afraid that every corporation is out to get me.

37. gambino37

Posts: 146; Member since: Oct 16, 2009

I fully understand that they arent trying to save anyone money. Its a business. They make a buck whenever they can. Unfortunately for us we pay more for stuff most of the time. However my logic is fine. You are bringing up an entirely new point about getting ripped off from tier to tier. That wasn't a point I was trying to make at all. In my opinion every carrier rips us off no matter what. All I was saying is that subscribers like me will probably be saving a little bit of money because we will be able to choose a lower tier and be just fine. I in no way support how it effects people that use way more data than I do. You are totally right about people with higher usage paying more for less data. What it comes down to is sporadic users like myself might be able to cut 5 to 10 dollars off of our plans. Good deal or not its still something.

44. SellPhones82

Posts: 569; Member since: Dec 11, 2008

@WKlingbeil....you understand what they are doing unlike alot of the others on here.

49. gambino37

Posts: 146; Member since: Oct 16, 2009

Others like who?

56. WKlingbeil

Posts: 215; Member since: Dec 26, 2008

Haha, That's because I've worked in the belly of the beast. VZW did their best to please customers back before they became the largest company again. Once they did, their whole mentality changed, as did all of the employee communications. It went from, "Ensure a 10 on all NPS scores" to "Okay, we're the biggest now, we'll put it in cruise control and start to railroad the customers." That's all fine to me, if the company wants to start focusing more on profits than customer satisfaction that's their choice. My problem was they expected customer-facing employees to call customers stupid to their faces when we did something that would be a negative to the customer, expecting us to tell them how this clearly crappy policy will benefit them. The reason so many people want to give cell companies the pass is because of how addicted society has gotten on our wireless devices. Pretty soon, I anticipate that cell phones will replace every device we own (aside from big-screen TVs of course ;-) )I'll compare Apple and Ford here for a moment. Ford (and all other domestic car makers for that matter) were making very sub-standard products for many years. Apple has made a couple generations of sub-standard products as well. With Ford, people didn't just settle for these issues they went out and found car manufacturers that would make a product that would do what they were built to do. A direct comparison would be my Lincoln vs. the iPhone. My Lincoln has lots of extra features, GPS, SYNC, sunroof, etc, but is constantly in the shop for repairs. Do I give 2 flips about those extra features when my car isn't running? Of course not, but with the iPhone, people accept this same issue. Sure, it has lots of great extra issues, but call quality is extremely sub-par. So why do people keep buying this device when it doesn't "run?" When it's always in the shop? Apple is just one (and really the big) example of this epidemic.

72. ace1122

Posts: 237; Member since: Mar 23, 2009

what exactly is tethering?

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