Last summer AT&T implemented new data pricing that was sure to cause an industry-wide change. Instead of charging $30 for unlimited mobile data, the company lowered the price tag by $5, and the consumption level by infinity. The new cap stood at 2GB, hardly enough for heavy iPhone users. Which was, of course, the entire point. AT&T made good with the majority of its smartphone customers by offering a $15 plan that allowed for 200MB, which most users stay below. It appears that Verizon will follow suit this summer. One can only hope that they approach it better than their biggest rival. Via FierceWireless we get the information right from Verizon CFO Fran Shammo: “We will move to tiered pricing in the mid-summer time frame.” There were few details beyond that, but suffice it to say that data is going to get infinitely more expensive. Verizon has an opportunity here to catch more subscribers. Now that they have the iPhone, and will eventually have a 4G iPhone, they are probably a more attractive carrier than AT&T. They could make themselves further attractive by offering better data plans. Even if they go $20 for those 2GB, or offer 3GB for the same $25 as AT&T, they’ll immediately look better. Heavy users won’t be happy, but heavy users won’t be happy with anything but unlimited. Instead of shooting for the impossible, they should go for a move that makes for better appearances. On the lower end, offering 250MB for $15 would be another one-upping of AT&T. It’s just 50MB more, but it will 1) look good in commercials and other advertisements, and 2) it will give customers that much more leeway. AT&T claims that 65 percent of its smartphone users average 200MB or less per month, but averages can muddy the real situation. You can average 200MB by going 250MB one month and 150 the next. Yet you’re still paying an overage for that 250MB month. Raising the cap by 50MB could help many customers avoid those overages. No one is going to be happy when Verizon announces these changes. We have unlimited, and they’re pulling the rug out from underneath us. But they can mitigate that outrage by creating slightly more consumer friendly plans than AT&T. They have to be happy that AT&T made it an incredibly easy accomplishment.
Verizon moving to tiered data pricing
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2 comments… read them below or add one
This a good move and strategy from AT&T, in my country also like CDMA operator (Bakrie Telecom) implement many kind of unlimited data packet where differentiate by speed level.
Thanks a lot for your information JOE
Eventually it seems data will be free as will the internet. Advertising is what seems for now what will power all mobile internet if the companies can capitalize on things like their own browsers, etc.