Verizon to begin tiered data pricing later in 2010?

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

FEATURED VIDEO

38 Comments

1. Dark Asgard

Posts: 44; Member since: Apr 01, 2010

So droid x is comming june 22nd now?

19. PapaJay224

Posts: 866; Member since: Feb 08, 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.

23. JackFace

Posts: 190; Member since: Nov 03, 2009

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

2. techtechne

Posts: 14; Member since: Jun 17, 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.

34. Kiltlifter

Posts: 742; Member since: Dec 11, 2008

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

3. Cazwell

Posts: 27; Member since: Oct 09, 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) :)

9. cc16177

Posts: 312; Member since: May 09, 2010

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

24. JackFace

Posts: 190; Member since: Nov 03, 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.

4. testman22

Posts: 339; Member since: Nov 03, 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.

5. VSS_55

Posts: 43; Member since: Jul 05, 2009

$$$$$

6. freemarketeer

Posts: 28; Member since: Jun 05, 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.

12. xmguy1

Posts: 68; Member since: Nov 04, 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.

20. PapaJay224

Posts: 866; Member since: Feb 08, 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

7. Caligula

Posts: 20; Member since: Jun 12, 2010

I hope the iPhone is coming

31. cellgeek82

Posts: 518; Member since: Dec 20, 2009

With all these Android devices, who needs iPhone?

8. downphoenix

Posts: 3165; Member since: Jun 19, 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?

11. ICanAffordVZW

Posts: 123; Member since: Dec 15, 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.

14. downphoenix

Posts: 3165; Member since: Jun 19, 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.

10. xmguy1

Posts: 68; Member since: Nov 04, 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.

13. theGodpapa

Posts: 181; Member since: Dec 15, 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

15. MalakiMills

Posts: 257; Member since: Jun 15, 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???

17. Whateverman

Posts: 3295; Member since: May 17, 2009

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

16. theGodpapa

Posts: 181; Member since: Dec 15, 2009

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

22. MalakiMills

Posts: 257; Member since: Jun 15, 2010

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

25. JeffdaBeat unregistered

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

18. Verizon

Posts: 22; Member since: May 14, 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.....

21. PapaJay224

Posts: 866; Member since: Feb 08, 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.

30. DonLouie

Posts: 594; Member since: Dec 22, 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.

26. locoboy808

Posts: 53; Member since: Oct 08, 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.

27. locoboy808

Posts: 53; Member since: Oct 08, 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

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.