Verizon CEO hints at All-You-Can-Eat plans changing

in iPhone edited January 2014


Verizon Wireless: 'All You Can Eat' Has Got To Change

Which is easy since Verizon nevered offered that anyway....

09:19AM Thursday Mar 11 2010 by Karl Bode

Verizon CTO Tony Melone has been on a whirlwind press tour the last few weeks promoting Verizon's planned launch of LTE (Long Term Evolution) wireless broadband service later this year. Most of his statements have offered nothing that hasn't been known since last summer, the CTO repeating the fact the service will initially offer speeds between 5-12 Mbps, and will launch in between 25 to 30 markets. Still murky of course is Verizon's LTE pricing and monthly caps, though given recent statements and other pricing changes, you can be fairly sure it won't be cheap. Speaking to the Wall Street Journal, Melone continues to hint at pricing changes coming down the line:


For consumers, LTE's faster speeds will come at a cost. Unlimited data plans available today may become a thing of the past, as carriers try to recoup the billions of dollars they are pouring into building out the new networks. Plans offering "as much data as you can consume is the big issue that has to change," Mr. Malone said. "It's one thing to say all you can eat is gone," he said. "It's another to have consumers worrying, 'Can I stream this radio?' That's what we don't want."

Except Melone is being disengenuous by suggesting Verizon offered "all you can eat" in the first place. Verizon's "unlimited" service technically comes with a 5GB monthly cap -- one NY's Attorney General slammed Verizon for advertising as "unlimited" in late 2007. Both Verizon and AT&T have been talking a lot about the need to change wireless broadband pricing models and how this is only "fair." But the real goal in these changes is simply to raise wireless data rates for everybody in order to offset losses in SMS and mobile voice revenues. Those losses will get heavier during the migration to open networks, mobile VoIP, push IM clients, and smartphones.

I said just the other day that all the Telco vendors would be moving to a tiered system [Bank on it] and expect it to take place over the year at various stages.

AT&T, now Verizon and soon T-Mobile will all be tiering their systems.
Sign In or Register to comment.