or Connect
AppleInsider › Forums › Mobile › iPhone › Verizon undercuts AT&T, reduces monthly voice plan by $29
New Posts  All Forums:Forum Nav:

Verizon undercuts AT&T, reduces monthly voice plan by $29

post #1 of 73
Thread Starter 
Competition in the mobile landscape became more intense Friday, when Verizon Wireless announced it has cut its basic voice plan by $29 per month, to $69.99 for unlimited calling.

Verizon also has an unlimited voice and text plan for customers available at $89.99 per month. But while Verizon is reducing its voice plans, those on its low-end data plans will see an increase.

The nation's largest wireless provider also announced Friday that while its basic wireless service fee would see a $29 reduction, the company was also doing away with its $19.99 75MB data package for 3G multimedia phones. In its place is the 25MB, $9.99-per-month plan for all 3G phones, giving access to e-mail, games and the Internet.

MarketWatch cited Walter Piecyk of Pali Research, who said the changes amount to an average 30 percent cut in voice plans and 50 percent increase in the cost of data with Verizon. In all, it amounts to an 8 percent to 10 percent reduction for users of the company's high-end rate plans.

Verizon's pricing changes, the report noted, could force AT&T to do the same to remain competitive.

The reductions come just days after a company official told The Wall Street Journal that in the future, customers will likely be charged for data based on how much they use in a given month. "We will end up billing differently in the future," said Dick Lynch, chief technology officer with the company.

Verizon officials believe that metered bandwidth costs will be beneficial to most customers, who do not use large amounts of data every month. Lynch said the average customer's bill would be lower if they paid for what they actually use.

Verizon's billing changes come as it has been in a heated battle with the exclusive carrier of the iPhone in the U.S., AT&T. The two companies were involved in a heavily publicized legal battle that was eventually dropped, though both companies remain engaged in advertising that heavily criticizes the other.

Verizon has parodied Apple's "There's an app for that" slogan by comparing its superior coverage 3G coverage map with AT&T, using the tagline "There's a map for that." And AT&T hired actor Luke Wilson to "set the record straight" on AT&T's coverage and point out areas where AT&T beats Verizon, like the ability to make calls and access data on handsets at the same time.

Verizon's comments on the prospect of tiered data plans were similar to what AT&T President Ralph de La Vega said last month. The AT&T executive's comments led to rumors that the wireless provider intended to introduce tiered plans for iPhone users, something the company emphatically denied was in the works.
post #2 of 73
I like this idea by Verizon, but 25 mb/month is way too low. My wife hardly does anything on her iPhone and she averages ~55-60 mb....
post #3 of 73
Quote:
Originally Posted by AppleInsider View Post

Verizon also has an unlimited voice and text plan for customers available at $89.99 per month.

Does that include any applicable taxes? In the UK you can now get unlimited calls and texts for £30 a month including tax, which equates to about $48. Why are mobile plans so expensive in the US?
it's = it is / it has, its = belonging to it.
Reply
it's = it is / it has, its = belonging to it.
Reply
post #4 of 73
Quote:
Originally Posted by Mr. H View Post

Does that include any applicable taxes? In the UK you can now get unlimited calls and texts for £30 a month including tax, which equates to about $48. Why are mobile plans so expensive in the US?

That's because the wireless companies don't really compete with each other. They have various ways to keep this from happening, the non-shared wireless spectrum, the non-shared lines and infrastructure, and worse, they have termination fees that are through the roof on top of incompatible phones. So I'd say they barely compete with all these obstacles from making the consumer easily switching from each other and that's why it's so expensive in the US. However, the main problem I see is similar to the ISPs asking for more money by metered pricing, i.e. try to justify it as lower cost to the consumer, but really almost everyone that uses an iPhone will hit or use above that limit of 25MB a month and get dinged overage fees. It's bad PR, but Verizon is no stranger to that
post #5 of 73
25mb? That's hardly enough to read emails.
post #6 of 73
It's amazing how vast the differences are between US and EU when it comes to telecommunication services. $69.99 for unlimited voice and text in US compared to $14.99 in EU. Am I the only one here who feels that Americans are being ripped off by their own companies?
post #7 of 73
Quote:
Originally Posted by AppleInsider View Post

MarketWatch cited Walter Piecyk of Pali Research, who said the changes amount to an average 30 percent cut in voice plans and 50 percent increase in the cost of data with Verizon.

Wow. I am blown away by the math skills at Pali Research!

Glad Marketwatch reported that calculation for us (and AI, in turn, alerted us), otherwise we would never have been able to figure it out -- thanks, guys!
post #8 of 73
This could end up being a pricing disaster for Verizon, and one that they will have to roll back. It creates too much month-to-month billing uncertainty for smartphone users.

Hope ATT does not follow suit (except for the decrease in voice/text price, of course).
post #9 of 73
Quote:
Originally Posted by kexxcream View Post

It's amazing how vast the differences are between US and EU when it comes to telecommunication services. $69.99 for unlimited voice and text in US compared to $14.99 in EU. Am I the only one here who feels that Americans are being ripped off by their own companies?

I am not sure but it might have to do with the fact that in the US the telco subsidizes the cost of the phone while it sounds like in the EU many people buy their phones upfront. That said, our costs are still too high.
post #10 of 73
I don't understand the terminology, because there are tiers below what the MW article called "basic". The real "basic" (Verizon's term on their web site) plan still starts at $39.99, 450 minutes, no data, 450 minutes. That is the same as AT&T when I signed up in 2008, and looking at the ATT site now, same thing.
post #11 of 73
$89.99 unlimited voice/text plus $29 dollar unlimited data would save me around 40 bucks a month compared to the similar AT&T plan. Visual Voicemail would still cost an extra $2.99. So the question is, is saving around 40 bucks a month worth it to move to a service that provides superior coverage (based upon reviews, maps, studies and overall word of mouth) but also unable to carry both voice and data at the same time?

I don't plan to switch to Verizon anytime soon with their current lineup of phones. However if they offer the iPhone with similar pricing, I would consider a switch. That 40 bucks could go towards other things I have to pay, like a half-tank of gas for my truck. LTE would eliminate the problem of being unable to carry both voice and data at the same time.
post #12 of 73
Quote:
Originally Posted by bulk001 View Post

I am not sure but it might have to do with the fact that in the US the telco subsidizes the cost of the phone while it sounds like in the EU many people buy their phones upfront. That said, our costs are still too high.

Well, but in EU the minutes are used only if one initiates the call, the person receiving the call is not charged. The same thing for messaging - person sending the message is charged, but receiving is free. I had a problem two years ago with some stupid guy sending me 200 messages and it charged me 20$. Then I stopped using prepaid phone and got iPhone.
Marquiz d' Gabber von Gabberaarde

... and Windows Vista...
... fails on the Moon...
... 6x slower!
Reply
Marquiz d' Gabber von Gabberaarde

... and Windows Vista...
... fails on the Moon...
... 6x slower!
Reply
post #13 of 73
Quote:
Verizon undercuts AT&T, reduces monthly voice plan by $29


YEA BABY! Bring on those lower prices!!

That's hitting AT&T right in the b@lls!

Bout' time we got some competition!

Now Apple has to get on board Verizon and all is well!
The danger is that we sleepwalk into a world where cabals of corporations control not only the mainstream devices and the software on them, but also the entire ecosystem of online services around...
Reply
The danger is that we sleepwalk into a world where cabals of corporations control not only the mainstream devices and the software on them, but also the entire ecosystem of online services around...
Reply
post #14 of 73
What Verizon has done is cut its cheaper unlimited data plans that were called the connect and premium plan and will force all lines to either pay $9.99 or $29.99 for data.

They are also increasing the number of phones that are required to have data plans, so now its not only smartphones but also cheaper crap media type phones that are not very good on the internet.
  • LG Chocolate Touch
  • LG enV3
  • LG env Touch
  • LG VX8360
  • Motorola Entice
  • Motorola Rival
  • Samsung Rogue
  • Samsung Alias
  • Nokia Twist
post #15 of 73
Quote:
Originally Posted by kexxcream View Post

It's amazing how vast the differences are between US and EU when it comes to telecommunication services. $69.99 for unlimited voice and text in US compared to $14.99 in EU. Am I the only one here who feels that Americans are being ripped off by their own companies?


We are being ripped off and have been for quite awhile.

They ran up their prices gouging people, along with everyone else, during the inflation of the credit bubble.

But now people are dropping their contracts and adopting less expensive voice service, VOIP, Skype, and using their computers and internet instead of smartphones.

It's been obvious AT&T can't handle a data hogging smartphone like the iPhone, so why bother paying for it if you don't absolutely need it?
The danger is that we sleepwalk into a world where cabals of corporations control not only the mainstream devices and the software on them, but also the entire ecosystem of online services around...
Reply
The danger is that we sleepwalk into a world where cabals of corporations control not only the mainstream devices and the software on them, but also the entire ecosystem of online services around...
Reply
post #16 of 73
These companies want you to believe that 25mb's for $9.99 is the steal of the century.

These companies are screwing you.

There is no free lunch here folks.
post #17 of 73
Yeah, Verizon

When a customer upgrades their crap LG enV2 to a new crap enV3 they will be forced to pay for a data plan.

Instead of having an unlimited connect family plan, every line on your family plan will be forced to pay an individual $29.99.

GO Verizon GO!!!!!!!!!!!!!!!!!

Quote:
Originally Posted by MacTripper View Post

YEA BABY! Bring on those lower prices!!

That's hitting AT&T right in the b@lls!
post #18 of 73
Quote:
Originally Posted by anantksundaram View Post

This could end up being a pricing disaster for Verizon, and one that they will have to roll back. It creates too much month-to-month billing uncertainty for smartphone users.

Hope ATT does not follow suit (except for the decrease in voice/text price, of course).

Regarding this Verizon pricing idea, two words:

VERIZON MATH!

http://verizonmath.blogspot.com/2006...rom-cents.html

Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

Reply

Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

Reply
post #19 of 73
Quote:
Originally Posted by kexxcream View Post

It's amazing how vast the differences are between US and EU when it comes to telecommunication services. $69.99 for unlimited voice and text in US compared to $14.99 in EU. Am I the only one here who feels that Americans are being ripped off by their own companies?

I feel like we are! Hence I don't own a cell phone! Eventually I'd maybe get one again...I use Vonage at home and have unlimited calling etc for like $39 a month.
"An investment in knowledge always pays the best interest."
"Those who would give up essential liberties to purchase a little temporary safety deserve neither." -Ben Franklin
Reply
"An investment in knowledge always pays the best interest."
"Those who would give up essential liberties to purchase a little temporary safety deserve neither." -Ben Franklin
Reply
post #20 of 73
Yes you are right the only change is the elimination of 1350 minute single line voice plan and 2100 to 6000 minute family voice plans. They lowered the cost of unlimited voice plans. There was no price change for the basic plans.

Quote:
Originally Posted by JeffDM View Post

I don't understand the terminology, because there are tiers below what the MW article called "basic". The real "basic" (Verizon's term on their web site) plan still starts at $39.99, 450 minutes, no data, 450 minutes. That is the same as AT&T when I signed up in 2008, and looking at the ATT site now, same thing.
post #21 of 73
Unless you want unlimited talk, how exactly is this saving anyone any money?

It seems like they added a requirement for $10 data plans for a whole lot of people, yet all we are hearing about is how they are lowering their prices?
post #22 of 73
You also have to factor in that we can travel the entire continental US without additional charge, while in Europe their are extra charges for roaming outside of a relatively small country.

Quote:
Originally Posted by Mr. H View Post

Does that include any applicable taxes? In the UK you can now get unlimited calls and texts for £30 a month including tax, which equates to about $48. Why are mobile plans so expensive in the US?
post #23 of 73
In Europe there are companies that offer unlimited data plans but with reduction of speed when certain amount of data is a exeded a month.

For example, there's a low cost company in Spain that runs through Orange's antennas (France Telecom) called Simyo that offers unlimited data at 3.6 Mbps speeds for 25 euros a month and after 5 GB it reduced the speed to 128 Kbps. When a new month starts, the speed increases to 3.6 Mbps again. It seems logical that for cheap data plans there are some limitations and 5 GB on a cellphone line seems pretty generous, and after 5 GB of data it isn't unusable at 128 Kbps either and they don't charge anything extra.

Others offer limited data with faster access and a very low price, like Pepephone, they offer 300 MB for 7 euros a month at 21 Mbps and 7.2 Mbps speeds (depending on the coverage, 90% of Spain's population has access to 7.2 Mbps speeds and certain parts of Spain have access to 21 Mbps speeds although it's expected that during 2010 most 7.2 Mbps stations have been upgraded to 21 Mbps speeds). It's cheap, fast and enough data limit for cellphone use.

There are other fast and less restrictive data plans, but they're also more expensive. Both of these seem to be a good example of what AT&T and Verizon should do, sense they're cheap and speedy and none of them strain the cellphone network so much that it makes the network work as crappy as in the US (haven't had a dropped call in years, literally).
post #24 of 73
Quote:
Originally Posted by travisc77 View Post

I like this idea by Verizon, but 25 mb/month is way too low. My wife hardly does anything on her iPhone and she averages ~55-60 mb....

25MB is what?.....one good iPhone App?

Thanks to the data hogs, watch all the carriers raise the data rates and implement tiered plans. There simply is not enough bandwidth to go around.
post #25 of 73
Quote:
Originally Posted by kexxcream View Post

Am I the only one here who feels that Americans are being ripped off by their own companies?

I got my 3G iPhone the summer of 08 just before the economy went off a cliff. If I had known, I wouldn't have spent the money on a luxury item. Especially now that my wife and I have taken pay cuts to keep our jobs.

And being an AT&T customer has been a horriblel experience. As soon as my contract is up, it's back to a cheap Verizon phone and my iPod classic.

Shame too since the iPhone gets better every year. I love the new Mobile Me photo gallery app. Too bad it only works when I have a signal.
post #26 of 73
Quote:
Originally Posted by Jerseymac View Post

I love the new Mobile Me photo gallery app. Too bad it only works when I have a signal.

It's kind'a sad that people in the US still have signal problems :-S
post #27 of 73
Quote:
Originally Posted by bartfat View Post

That's because the wireless companies don't really compete with each other. They have various ways to keep this from happening, the non-shared wireless spectrum, the non-shared lines and infrastructure, and worse, they have termination fees that are through the roof on top of incompatible phones. So I'd say they barely compete with all these obstacles from making the consumer easily switching from each other and that's why it's so expensive in the US.

In the end it all comes down to government regulation, or the lack thereof. Washington is funded by lobbyist (from telecom and other industries), so the consumer ends up getting screwed.
post #28 of 73
Verizon sees it will eventually be in the same situation as AT&T and is why they have said that providing unlimited data is not sustainable in the long term. Eventually they said they will charge for the amount of data you use.


Quote:
Originally Posted by Jerseymac View Post

And being an AT&T customer has been a horriblel experience. As soon as my contract is up, it's back to a cheap Verizon phone and my iPod classic.
post #29 of 73
Sweet! This should ricochet through the rest of the market. I expect voice plans in general to drop as internet access becomes more prominent. Eventually, when LTE becomes the standard and VoIP is the means by which voice is sent and received I expect unlimited voice to be included for free with your plan, but that is about a decade off.


Quote:
Originally Posted by Mr. H View Post

Does that include any applicable taxes? In the UK you can now get unlimited calls and texts for £30 a month including tax, which equates to about $48. Why are mobile plans so expensive in the US?

Besides what Bartfat stated, note that the US mobile infrastructure is considerably larger than the UK. According to the CIA World Fact Book the UK is slightly smaller than Oregon.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #30 of 73
Its not easy to cover 308 million people over 9.83 million sq km.

Quote:
Originally Posted by heffeque View Post

It's kind'a sad that people in the US still have signal problems :-S
post #31 of 73
25mb?!? Hmmm. download Countdown with keith olberman(9.9mb), Rachel Maddow(9mb), one song from itunes(4mb) and using google maps gps for a trip somewhere(1mb)

I'd be out of data in 1 Day!!!! I wouldnt touch verizon with these draconian plans. Yeah your plan has been reduced but consider this

Att
A-List(with google voice as one of my numbers) $60
Beejive(All texting is unlimited, even to other mobiles) Free
Data plan(unlimited) $30

Verizion
Calling and texting $90
Data plan for say 250mb(fair amount)??? 20$ for 75mb...I use about 700mb per month

On the verizon plan I'm already $20 over and have a drastically reduced data access.

No thanks. For all of att's issues, when they picked up that A-List, and Apple provided push to talk, they effectively provided unlimited calling and text...In an attempt to be more competitive, Verizion just priced themselves out of the race
post #32 of 73
Quote:
Originally Posted by TenoBell View Post

Its not easy to cover 308 million people over 9.83 million sq km.

Imagine how the Russians feel
post #33 of 73
Quote:
Originally Posted by heffeque View Post

Imagine how the Russians feel

I know youre kidding, but just to be clear for some posters, countries like Russia and Canada maintain their populations is a small percentage of the country
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #34 of 73
Quote:
Originally Posted by noexpectations View Post

25MB is what?.....one good iPhone App?

Thanks to the data hogs, watch all the carriers raise the data rates and implement tiered plans. There simply is not enough bandwidth to go around.

They would be good if the data/tier was sufficient. 25mb clearly is not. An iphone user, or any other smartphone user, needs at least 250mb for the lowest tier
post #35 of 73
Quote:
Originally Posted by bulk001 View Post

I am not sure but it might have to do with the fact that in the US the telco subsidizes the cost of the phone while it sounds like in the EU many people buy their phones upfront. That said, our costs are still too high.

Let's look at Vodafone who just launched iPhone at its network.
600 minutes, unlimited text, 1GB of data, unlimited Wi-Fi, contract for 2 years, and iPhone 3Gs 16GB for £89. It costs ... £35 per month. Multiply by 1.6 to get prices in $.
Pretty nice, huh?
American centrism dominates 50% of the population here. That half don't think outside the box ... or perhaps just don't think. © digitalclips
Reply
American centrism dominates 50% of the population here. That half don't think outside the box ... or perhaps just don't think. © digitalclips
Reply
post #36 of 73
Quote:
Originally Posted by solipsism View Post

Besides what Bartfat stated, note that the US mobile infrastructure is considerably larger than the UK. According to the CIA World Fact Book the UK is slightly smaller than Oregon.

Quote:
Originally Posted by TenoBell View Post

Its not easy to cover 308 million people over 9.83 million sq km.

So far AT&T can't provide "adequate" coverage for pretty small metropolian areas like Bay Area or New York.
American centrism dominates 50% of the population here. That half don't think outside the box ... or perhaps just don't think. © digitalclips
Reply
American centrism dominates 50% of the population here. That half don't think outside the box ... or perhaps just don't think. © digitalclips
Reply
post #37 of 73
Quote:
Originally Posted by TenoBell View Post

Verizon sees it will eventually be in the same situation as AT&T and is why they have said that providing unlimited data is not sustainable in the long term. Eventually they said they will charge for the amount of data you use.

I dont think VZW has an unlimited data plan, atleast not when i was there (it was 5GB for 30 bucks).

Unlimited Mobile Data just isnt going to be plausible, at least not until the end of this decade. Even as bandwidth increases, so do smartphone features. I cant wait to see how hard Flash hits once its available to more mainstream phones.
post #38 of 73
Quote:
Originally Posted by TenoBell View Post

Its not easy to cover 308 million people over 9.83 million sq km.

Exactly. I like how many other countries speak of their superior coverage when a number of them aren't even the size of some states here in the US.
post #39 of 73
Quote:
Originally Posted by heffeque View Post

Imagine how the Russians feel

And they provide much better coverage for the population. About 15-20 million people live in Moscow area and they have no troubles with coverage. Yes, there some restrictions for 3G network in Moscow (for military purpose), but it'll be solved in a year. In addition, they pay much less for the cellphone service.
American centrism dominates 50% of the population here. That half don't think outside the box ... or perhaps just don't think. © digitalclips
Reply
American centrism dominates 50% of the population here. That half don't think outside the box ... or perhaps just don't think. © digitalclips
Reply
post #40 of 73
Quote:
Originally Posted by gin_tonic View Post

So far AT&T can't provide "adequate" coverage for pretty small metropolian areas like Bay Area or New York.

That has nothing to do with Verizon or the original comment. I know you just to be negative toward Apple and AT&T but try to stay on track.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
AppleInsider › Forums › Mobile › iPhone › Verizon undercuts AT&T, reduces monthly voice plan by $29