Verizon ending unlimited data on July 7th, era of tiered pricing is upon us. | webOS Nation
 
 

Verizon ending unlimited data on July 7th, era of tiered pricing is upon us. 62

by Tim Stiffler-Dean Mon, 20 Jun 2011 4:40 pm EDT

We've been waiting for the inevitable switch from an unlimited data service on Verizon since their CEO told us about the change in September of last year, and now it's looking ready to arrive much sooner rather than later. On July 7th, Verizon will be cutting the cord on unlimited data and switching to a unique set of tiered pricing plans, to effect all 3G and 4G customers, from 2GB at $30 to 12GB (with tethering) at $100. 

A few things to keep in mind: This will not reflect on current customer's bills or contracts. Anyone who has setup a new contract before the 7th will continue to get the pricing that they've already signed up for. You signed a contract, after all. If you plan on upgrading or setting up a new contract with Big Red after the 7th, though, you'll need to be ready to pay for some more expensive (and capped) data plans. For most users, these new plans won't be too much of a problem: Checking Twitter and reading a few emails every day doesn't take much data. Unfortunately for the rest of us, we'll want to put ourselves around more Wi-Fi hotspots, or you may find yourself paying a pretty penny for the overages (at $10/GB).

Our cohorts at Android Central have gathered some more information on the matter from an email sent out by Verizon's South Area VP of Marketing and Sales, Lee Williams. Click through the break to read that transcript.

The Next Generation of Data Pricing – Our Evolution Amidst an Industry

Revolution

Greetings team, it’s Lee, your Area Vice President of Marketing and Sales Operations. As we approach the summer solstice, I wanted to reach out to the team and overview what I believe represents a significant and exciting evolution around how we package data solutions to our customers and the marketplace.

The Revolution is Upon Us...

In what has been a year of amazing performance by the South Area including company leading year-over-year churn improvement, successful introduction of the iPhone 4, strong post paid gross and net adds and industry leadership in launching our 4G LTE network; we find ourselves entering into a period of transformational innovation within Verizon Wireless and the wireless industry as a whole.

Our ability to out execute and deliver upon the promise of The Credo everyday has allowed us to maintain the industry leadership. At the same time, accelerated market expectations coupled with the introduction of many emerging solution categories has created new opportunities for us to meet and exceed the needs of our customers.

Data Pricing Evolution… The Present

Our legacy data pricing structure was designed to address a somewhat different customer need profile than what we are seeing and can expect in the future.

Consider this. Data usage has more than doubled over the last three years. Consumers and business users alike are doing more and more with their mobile devices. The notion of “send and end” has migrated to “managing multiple aspects of one’s lifestyle through mobility.” Whether it’s social media (85%+ of Smartphone users), mobile internet (88%+ of Smartphone users), or email/applications (71%+ of Smartphone users), this usage has one thing in common—dramatically increased demand for data and media consumption.

As a result, we are evolving our approach around how we package our data solutions and pricing to our customers. Coming soon, Verizon Wireless will move from our existing pricing format to a structure designed to allow customers to choose the right data solution that best aligns with their needs.

The Value Benefit Equation...

With the new usage based pricing plans, the vast majority of our customers will be able to enjoy their typical level of data consumption for the same value that they outlay today. Additionally, for those who have greater requirements for data, we will have solutions that they can tailor to their unique needs.

Perhaps more importantly, given our strong desire to continue to provide enhanced capability and value to our customers, the new data pricing will apply to both our 3G AND 4G LTE networks. So in essence, for those customers in our ever and rapidly expanding 4G LTE network coverage footprint, users will gain the benefit of the fastest and most advanced 4G LTE network in the U.S. all for the same usage based value. More speed. More functionality. Same value.

Let’s Do What WE Do…

Our expectation to extend our market leadership will be largely dependent on our demonstrated ability to “operationalize” in the face of an ever-changing environment. The successful launch of our new data pricing solutions represents a key milestone in our continued march to excellence. Over the next few weeks, you will be receiving much more insight, information, and learning opportunities around this significant evolution in how we provide our industry leading best solutions, to the right customer, that best satisfies their needs.

I have every confidence in our ability to execute this flawlessly because it is the Verizon Wireless and South Area way. Our customers expect and deserve nothing less.

To paraphrase a quote from a favorite cinematic masterpiece of mine from the 80’s, Top Gun, “Verizon Wireless is engaged. The South Area has the lead…” Let’s do what we do.

62 Comments

Damn it. How can i think of saving anything when literally every company has a hand in my pocket? That Gross pay i take home.. really seems gross and soon i cant even take home.

Yeah, you definitely don't get to take home the gross... only the measly net.

I like how this VP tries to make this sound like a good thing....

then ends by quoting one of his favorite movies: Top Gun .....

Where's Tarantino when you need him?

Next up...Sprint. :-(

I hope you're wrong

So do I.

This is what I've been saying, we will be happily moving to AT&T from Sprint in the fall.

why the **** would anyone want to move from Sprint to AT&T?
I went the other way around. I gladly paid AT&T an early termination fee to leave that garbage.

I'm not cool with the $10 per a line fee. Sprint isn't getting the phones I really want, and AT&T will actually be cheaper than Sprint for how we use our phones once you add that $10 per line.

Don't forget that you get what you pay for - I switched from AT&T to Verizon to pick up the Pre Plus and get away from AT&T's dropped calls. I discovered that Verizon really does have a more stable network but at the end of the day, I'd rather save $40 per month and deal with AT&T's dropped calls (2 -3 per day on AT&T vs. 2-3 per month on Verizon). I stayed on VZW for a year, then switched back to AT&T because the extra expense per month and the way VZW screws with your phone were more than I could bear. I am sure you will weigh your choices carefully.

From someone who had Verizon as their local phone company, I had developed a great dislike for that company and switched away from them as soon as I could. Years later, in the move to cellular, I knew that Verizon may have had better quality service in my area due to using government subsidized land/equipment, but I would NEVER give them my money again, so I went with AT&T.

Yes, AT&T does have some issues with dropped calls, but at least I don't need to check my cell bill every month to make sure Verizon didn't randomly add some obscure service I would never want and charge me $10-$20 extra for the month unless I took the time to call and yell at them about it.

So, AT&T...there are problems, but generally honest when it comes to business practices. Verizon....where you have to watch your bill to make sure they have not added on extra fees for no reason. You pick...

Yeah I have some close friends on ATT and my family is on ATT. I had stayed with Sprint to avoid the ATT dropped calls. At this point now that I can save money with ATT (not counting I may get a bigger corp discount on ATT and have home phone and internet with ATT for an additional discount). Sprint has made the decision for me.

I have been with Sprint for about a decade, brought my wife over when we started dating from VZW. Now we will take both our lines to ATT this fall.

I'll deal with a few dropped calls (I don't talk on the phone that much anyways).

Nah, Sprint isn't anywhere near bumping against their bandwidth ceiling. Verizon has so many customers that the cost of supporting and upgrading their equipment has been astronomical. Sprint on the other hand... well, lets just say they don't have to invest a lot in upgrading.

It's not about that... Sprint has no reason to stay unlimited now. I am betting they have been waiting to see where VZW comes out so they can position themselves where they want.

I think Sprint has a heck of a reason to stay with unlimited plans now, the fact that they would be the only ones. It is a good marketing point for them.

Listen to Dan Hesse say it himself.
http://youtu.be/NlkT7gRM0xo

Your right Hesse did say it, months ago... From my post about this from the forums (quoting the front page P|C story that quotes Hesse). I'll take his words over a commercial that is just a marketing campaign. Sprint can now go tiered and already can see what's out there, thus looking like the "good guy" or the best option by having the most competitive tiers. It's simple business/capitalism, they can make more money, and it's not like you have anywhere else to go.

From Hesse-

“We can offer unlimited as long as the usage is reasonable. If you run an all-you-can-eat buffet, but you have the New England Patriots come in and the whole team spends a whole day there, I can't afford to do that anymore.”

http://www.precentral.net/hesse-too-much-downloading-could-mean-end-unli...

Between comments like that and $10 per line fee that was added, I don't have faith in Sprint staying unlimited when some time in the next year or so they will be the only unlimited left. I think Hesse is waiting to see where VZW comes out on there tiers. Sprint may offer better tiers than AT&T and VZW, but long term I see Sprint going there to.

Maybe Sprint starts their tiers at 3 gigs instead of 500 megs or whatever ATT's lowest is. Then 6 gigs, 9 gigs.... or maybe they make you pay for your unlimited data, and cap normal plans. Like I said, just thinking sooner or later... we will see though.

Og good Lord if EVER there was a reason to stay unlimited it would be now. The marketing they started promoting themselves as the only true unlimited carrier plays out perfectly now. In 5 years, this *could* change if enough people leave Verizon for Sprint but people are extremely ignorant when it comes to technology. Exhibit A) the iPad.

I think a smart move for Sprint would be to drop the $10 across the board data charge and do tiers with bigger caps than big V and ATT. Something like 3GB included with everything plans, 6GB for $10, and unlimited for $15ish. Good marketing opportunity and they get to make a little extra $$ from heavy users.

If they would be fair they would use capped data plans instead of this.

In that case you at least don't pay an overage fee (and feel more comfortable) and you can still use the "normal" services like chat, websurfing etc. and just would stop to stream music and videos.

But I guess they can earn more with everage fees...

What a load of **** ****

This is exactly why I am cancelling my family plan on September 25, 2011 and going to Cricket.

I refuse to pay those types of prices for a service that is not worth those prices.

After my 5th Pre Plus finally died last month I re-activated my old 755p. Even though it is nice to have I don't need a data plan.

Phone bills should be going down in price at this point in time not going up.

"Even though it is nice to have I don't need a data plan.

Phone bills should be going down in price at this point in time not going up."

You hit the nail on the head, greenlantern. These are all things that we have convinced ourselves that we "need", because of convenience. As long as millions of us have ourselves convinced we need them, the companies hold all the cards.

Start biking to work- we don't care about the cost of gas! Stop watching TV endlessly- we don't need no stinking satellite! Switch back to our old phones- who cares what a data plan costs!

It is a load and I've been preaching that phone companies have been ripping off customers for a long time now, but everyone ignored it when phones became "smart". There's a bit of an illegal thing companies are doing by "TYING" data services to phone services. I have long said that I didn't want a data plan with my phone because virtually all phones can be enabled with wifi. People whined to me that if I didn't want a data plan to get a phone that doesn't need one. One problem: Phone companies don't sell smart phones without them. You can read my original argument here:

http://forums.precentral.net/palm-pre-pre-plus/232088-should-pixi-pre-of...

This is typical Verizon tactics. They lure customers in with "unlimited" plans and cheap initial rates, then when they have customers, they charge an arm and a leg.

I say people should make a stand. If Verizon (or any phone company) wants to remove "Unlimited" plans and charge an obscene amount of money for them, then they should also offer customers the ability to purchase the same phones WITHOUT data plans. I would love to have a smart phone without a data plan and only a voice plan (texting in my opinion should be part of the voice plan, but that's another idiotic payment system people bought into and conversation for another day).

If people don't speak up, companies will continue to just rip us off.

Why is it that I can pay $30 for a 30MB connection at my house, but now we'll have to pay $100 a month for a measly 3G connection?

Reading stuff like that freaks me out. I am from belgium, using mobile vikings as my network provider. Get this, prepaid 15 euro, unlimited text for 1 month, use those 15 to make calls, 20cents a minute, charged by a second, 2gb 3G traffic included for 30 days from the reload, top up ur acc whenever u want. I dont call much so i usually end up reloading every 6 weekS

You said it man, lets stop these greedy companies by pulling the plug. Internet is not a necessity, heck cellphones aren't.

Why should I pay the same price for 20 GB that I pay for Unlimited? **** AT@T looks better then that!

AT&T looked better than Verizon BEFORE this new tiered pricing. In fact - WAY better. The differences of a 2 year cost of ownership now between Verizon and AT&T is huge, almost laughable. Throw Sprint in there and Verizon looks downright stupid. You start to see really quickly why people are struggling to pay their bills when you continue to make foolish financial choices like choosing Verizon over Sprint. It's just silly.

you mean 2GB, not 20GB. 2GB will cost $30, same as unlimited does now. 20GB for $30 wouldn't be bad at all, but 2GB sucks.

Heck, I was thinking they would come out with 5GB for the same price as unlimited but no, they do 2GB because it effectively cuts out Netflix and any other streaming TV service.

Yep, my bad! The times they are a changin'

This sucks, I haven't been with Verizon long but ATT and Sprint are defintely looking better

So all Pre3 owners on VZW will have to deal with this. I wonder how many original Pre owners will opt to stay with Sprint rather than follow WebOS to Big Red...

ATT

At least they also can choose AT&T.

But still this is no good situation that you have in the USA. It's almost as bad as what we all have with those petro-companies.

What a load of purposefully misleading corporate blather. These guys are pros at making morons think dook soup is delicious...

I've been saying for a year that I'll never go back to Verizon and this is one more reason. But my day one Pre minus is dying a slow death and I'm really hoping Sprint will have the pre3 so what am I to do. I guess att but I'm not a big fan of their coverage in the SF area, or the company...

C'mon Sprint and HP, kiss and make up. Make money and make us all happy.

If you're planning on getting a Pre3 on VZW, you'd be better off to get a Pre2 for $49 w/ 2 yr. contract before Wed and then pay full price for a Pre3. If you're going to stream movies, a lot of music or tether the Pre3 to a TouchPad a lot, then the extra $200 or $300 for the Pre3 will pay for itself w/in that 2 years.

Better yet, do they give you 30 days to "try out" a phone? Just take back the Pre2 for a Pre3 ... if only that July 21st date was official ... hmmm

This will most likely count as a new "activation", thus giving them reason to charge you new plan rates.

As always YMMV and could depend on your CSR/Sales Rep.

I know Verizon is the subject here but AT&T will change out your phone in the store once within 30 days of activation. When I was on VZW's network, I never tried to make any type of exchange.

I was just thinking of getting a Pre2 before the price increase and hoping that the Pre 3 would be out before the end of the month. Verizon recently changed from a 30 day trial to a 14 day trial (another form of then sticking it to us). But even if the Pre3 is later than that, you're probably right that the price for an off contract phone would be less than the data cost. I have Sprint now since 6/6/09, but my reception at my home is very poor. I tried a Veer out last month on AT&T, and it was pretty nice, just didn't like the smaller screen as much. I could switch to AT&T and bundle my home internet and phone and save more, so I don't know. But I think no matter what I am leaving Sprint....

You only get 14 days to return the phone. And they will charge a restocking fee to boot. VZW has gone fee crazy and they blame it on the iPhone. It is really lame...

That's exactly what I'm doing! Bought a Pre 2 and locked in a unlimited data contract with VZ. Will sell the Pre 2 and then get the Pre 3 and activate on the same contract.

I fail to see how this is beneficial to even those who use 2GB or less. I would understand it if the new 2GB option was cheaper than the old Unlimited option, but this benefits no one other than Verizon. Thanks for the "choices" verizon. I'll choose... sprint

I'm surprised that Verizon didn't even match AT&T's stingy plans.

Corporate blather indeed - holy ****. Now I know why my dad b**** about working for Verizon so much - he probably had to read this kind of executive bs every day. "Sales peons, we're getting ready to shaft our customers, keep a smile on your face while you sell 'em a load, so my executive pay will continue to go through the roof!" Glad I convinced them they owed me an upgrade to a Pre2 to replace the third malfunctioning under warranty Pre Plus. Lost the free 5GB hotspot, but hopefully have a phone and a contract that will last me for a while.

One cannot even begin to satirize such corporate doublespeak. Lee Williams for Tool of the Year.

Well, due to the fact that HP won't be releasing the Pre 3 in time on Verizon, I definitely won't be switching over. I was kind of hoping to, especially after pricing out with my employee discount.

But, with the tethering capabilities with my TouchPad, I can see the potential of me going over that 2GB. It's really too bad. Lets just hope Sprint can get back on the webOS bandwagon and pull customers away from ATT and VZW who don't want to be controlled by caps and outrageously high prices.

Guess I'll either be going to Virgin or back to a dumb phone. No way would I pay the same price for a lesser product. Thats bullS***. Not enough wifi spots around here and I use only 3gb a month. I guess when you own the cell phone industry you can do as you please.

I'm getting more confident in a HP Sprint webos phone. I likey the Sprint. atnt was awful to deal with and I continue to hear horror stories. How many Verizon webosers are really using mre than 2 gigs a month? Ie how big of an issue is it?

Ouch. Do you think they will throw in the complimentary tube of KY or do we just get billed for that as well?

I don't get the pricing. Shouldn't the economies of scale be kicking in somewhere along the line and balance out these networking costs? I feel like the data services should be getting cheaper per person- not more expensive. What am I not getting?

In any case, I'm up in October, so I have a few months to research options and keep hope alive for some reasonable alternatives. One thought - even if the contract is over, won't they keep honoring the unlimited option? If so, I suppose I could always just upgrade to TouchPads and just keep the Pre as a cheap mobile "router"?

I can't even put my frustration in words....I used 14 gb last billing cycle....thank god I still have a year left on my contract otherwise I'd have one **** of a bill on my hands.

As much as I loath the DeathStar. It seems like between the two. They are less evil. Did I just say that? Got a chance to play with a Veer at the local BB. Have to say wasn't to bad. Kinda speedy in it's own right. Now if Sprint would get a Pre3 I'd be happy. Was contemplating going to VZW. That now has been taken out of my hands. I will be curious how bad the churn will be. When this tiered structure rears it's head in the coming months.

I can see it now "Hey VZ Can ya hear me now running away from you?"

This is why EVERYONE in this community needs to respond (if its not too late?) to the FCC asking the public opinion on AT&T buying T-Mobile! The less competition we will have the more we will see these ridiculous money raping schemes!

http://www.engadget.com/2011/04/30/fcc-opens-floor-for-public-comment-on...

The day that a webOS phone is available on a prepaid service, I'm gone from AT&T/VZW/Sprint! Ever wonder why the carriers are buying up all of the prepaid companies? [there is a cash flow advantage too] It's amusing that we have three incompetent carriers to choose from: Sprint lacks customers, AT&T lacks network, and Verizon lacks customer service ... :-)

I've said it before, and I will say it again, if cellular providers can't reduce data speeds on a per-user basis, then they would NEED to put data caps in place to keep bandwidth hogs from saturating the network as the speeds increase.

The concept is simple, it is far easier to provide 2G speeds and unlimited data than it is to provide 3G speeds and unlimited data. Going to 4G and LTE, the amount of data each user can potentially consume will continue to increase, and that would cause problems with capacity in large cities(similar to what happened to AT&T).

My solution would be to make 2G or 3G speeds give you unlimited data, but going upwards from there, the carriers should offer plans where you could accept those slower speeds for unlimited, or a high cap each month, and for higher speeds, either increase the cost if the customer wants unlimited, or put an appropriate cap on the bill.

With that in mind, the old plans have been $30/month for unlimited. AT&T changed this to $15/month for 200MB and $25/month for 2GB. If AT&T had the ability, they could easily have kept the data speeds to 3.1mbps down for customers that still wanted unlimited, but then made it so 7mbps would then have the 2GB cap for the $30/month(customer decides which he/she wants).

There could be other offerings, where customers could then pay an extra $10 or $20/month for more bandwidth at the 7mbps speeds, or there could be a $45/month for unlimited 7mbps speeds. With the move to 4G, customers should be able to choose if they want MORE data, or more speed, and those who are content with 2G speed should be able to keep unlimited data at those speeds.

Well, I was going to go from Sprint to Verizon just to get the Pre 3. However, now that I see this, I will likely reconsider and wait for the Pre 3 on Sprint, if it ever shows up. Voice and data is no different flowing to/from digital phones. It's all just 1's and 0's in the transmission. This is nothing but a blatant grab by VZW to soak more money out of its customers!!

Isn't it ironic that they want us to pay more for something that the WHO told us causes cancer? ;)

I am right there with you SilvrDrgn. I was looking to move to VZW when my contract(s) with Sprint were up, but now? Ungh.

Was with PacTel/AirTouch/Verizon forever, moved to Sprint to get the Pre-, as Verizon had a steamin' wad of nothin' 2 years ago.

Service was just as good, savings were more than the cost of the phone and accessories in the first year alone. If there's a reason to stick with Sprint, it's $$$. I was planning to move back to Verizon to get the Pre3, but tiered pricing would put me off that.

Unless, of course, move early, get the current unlimited service contract, then swap phones...? Or will they mandate a "plan upgrade" when you change your hardware?

Unbelievable, this is absolutely absurd. Once again, the American telecom is out for a cash grab. Cell phones are already, for many, the second most expensive bill in their budget. When will this madness end? The thing that makes me the angriest is how we are forced to have a data package, no matter our usage. I feel like at $30/2GB, I'd prefer to save the money and simply go without data, relying on WiFi for data usage. If the data use is "such a burden" for these companies, then why not make this happen? Surely, there have to be others who agree and this would help to lessen their load.

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I'm hoping to get a few PM's or replys to this post, i just wish i would have posted earlier.

Carriers are making us pay more and more for data, I'm ignorant here but, I'm wondering how data usage for cell phones keeps going up. I understand you're going to stream things once in a while but, the majority of the time you're doing web based things. Most of us have alternate ways to browse, and maybe I'm speaking for myself but, most of us also use WIFI when it's available, it's almost always faster plus less battery drain.

In addition... a lot of people have commented about Sprint possibly going to tier'd plans in the future.... I'm thinking they won't. Charging an additional $10/line for new smartphone activations should be more than making up for that.
Anyone out there that is no longer a webos user and is on a 4g phone.... do you pay only $10 4g fee, or 4g fee plus $10 smart phone.
my understanding was the 10 bucks was rolled out for all users to negate the $10 4g charge

I think that most people who are concerned are thinking primarily about their tethering capability. Once tethered, your data usage will go up!

I also listen to Pandora quite a bit, and that can really add the KBs. With a cap, that is being taken away from me :(..