Verizon to kill unlimited data plans in transition to 4G LTE

Posted:
in General Discussion edited January 2014
Verizon CFO Fran Shammo announced on Wednesday that the company will discontinue existing unlimited data plans when users move to the carrier's faster 4G LTE network, pushing current 3G subscribers toward data share plans expected to launch later this summer.

At the 40th Annual J.P. Morgan Technology, Media and Telecom conference Shammo said that current unlimited users, whose data plans were grandfathered in when Verizon made the switch to tiered plans in July 2011, would lose the all-you-can-eat option if and when they move to 4G, reports Fierce Wireless.

Verizon is leveraging its speedier 4G LTE network to attract customers away from their $30 per month unlimited plans to new data-sharing tiers which are scheduled for a mid-summer rollout.

"A lot of our 3G base is on unlimited," Shammo said. "When they migrate off 3G they will have to go to data share. That is beneficial to us."

In their quest to garner the highest possible revenue per user, carriers have quickly moved away from the unlimited data plan, which was first introduced as an enticement to enter the then-nascent smartphone market. With the rise of data-hungry handsets like the iPhone, wireless companies found that a capped and tiered pricing model was the most lucrative solution.

Currently, unlimited customers pay $30 per month on Verizon's network, identical to the price paid by grandfathered users on other networks like AT&T.

Unlike Verizon, AT&T extended its legacy plan to 4G LTE customers, but at the same time instituted speed throttling for users who pass a "threshold" of 3GB and 5 GB each month for 3G and 4G users, respectively. Earlier in May, AT&T Chief Executive Randall Stephenson said that he wishes his company never offered unlimited data.

Fran Shammo
Verizon CFO Fran Shammo.


Verizon's upcoming data share plans are meant to streamline the management and offer an attractive price structure to contract owners who own multiple smartphones, such as small businesses or families. Shammo noted that the industry has crippled the smartphone market by restricting data usage to individual devices.

"If I can add as many devices as I want, that is more efficient from a family perspective and a small business perspective," Shammo said.

Carriers have promised shared data plans for nearly a year, though the nation's top providers only recently firmed up strategies and possible launch windows.

Shammo noted that as carriers implement shared plans, they will have to move from studying average revenue per user metrics to average revenue per account.

Pricing for Verizon's data share plans have yet to be announced, but Shammo made it clear that the company is pushing hard for the new model.

"Everyone will be on data share," Shammo said.
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Comments

  • Reply 1 of 38
    icoco3icoco3 Posts: 1,471member


    The model seems to be about $10 a gig, as long as they continue that pricing structure they should do well.  Not everyone will be happy but, life goes on.


     


    Now if overage charges would be limited to $1/100meg then everyone would be happy.


     


    Tom

     

  • Reply 2 of 38
    maccherrymaccherry Posts: 924member


    Screw them! I don't need to surf the net on my phone. Convenient but unnecessary. The web is great, that's not the issue, the issue are the telecoms feeding off our digestion for web content. Content the carriers don't provide.

  • Reply 3 of 38
    dasanman69dasanman69 Posts: 13,001member
    I'll never upgrade with them, I'd rather pay top dollar for a used device and stay on a month to month once my contract is up.
  • Reply 4 of 38
    oblenaoblena Posts: 1member


    "A lot of our 3G base is on unlimited," Shammo said. "When they migrate off 3G they will have to go to data share. That is beneficial to us."


     


    Ya' think?!?!?! Because I am sure they didn't make enough money before!

  • Reply 5 of 38
    djsherlydjsherly Posts: 1,031member

    Quote:

    Originally Posted by maccherry View Post


    Screw them! I don't need to surf the net on my phone. Convenient but unnecessary. The web is great, that's not the issue, the issue are the telecoms feeding off our digestion for web content. Content the carriers don't provide.



    How does the content get to you?

  • Reply 6 of 38
    charlitunacharlituna Posts: 7,217member
    djsherly wrote: »
    How does the content get to you?

    Well if you have an eyefone you can always use the weefee
  • Reply 7 of 38
    saintstryfesaintstryfe Posts: 139member


    Here's all the speed you'd ever want... but make sure you don't download anything.


     


    I'll stick with 3G for now, thanks.

  • Reply 8 of 38


    Well after reading this on several sites I emailed Verizon of my displeasure and just got this voicemail


     


    http://dl.dropbox.com/u/1971965/VerizonWirelessUnlimitedPlan.m4a


     


     


    Then a few minutes later I got this email


     


    http://dl.dropbox.com/u/1971965/VerizonWirelessUnlimitedData.png


     


    VerizonWirelessUnlimitedData.png

  • Reply 9 of 38


    I wish someone would do a pay-as-you-go model.  No monthly rate, just sell 10GB at a time.  Let people use it however, whenever they want.  Obviously this will never happen with phones, probably never will with other gadgets.  But, I would actually use an iPad data plan if I could do this.

  • Reply 10 of 38
    shadowxprshadowxpr Posts: 162member
    This people are gangsters all the telecoms have record profit, if I did not had unlimited with AT&T print will be my carrier. They are the only ones with unlimited 4g Hell even my wired provider now have caps. Bothe wired and wireless want to screw us with caps...
  • Reply 11 of 38
    andyappleandyapple Posts: 152member


    Steve, wonder if Verizon meant that you are only safe in the plan you currently have.  Richard didn't say you would still be grandfathered under 4G/LTE. Huh.

  • Reply 12 of 38


    "A lot of our 3G base is on unlimited," Shammo said. "When they migrate off 3G they will have to go to data share. That is beneficial to us."


     


    The word "Douche" comes to mind when I read this quote above.


     


    The bottom line is that they should not offer something they can't back up. My dad used to say to me, don't let your mouth overload your ass, and that's exactly what both Verizon and AT&T did. I think they need to honor their original commitment to us, if they force me into a tired model, I will most certainly unlock and then go to a month-to-month from someone else.

  • Reply 13 of 38
    bigbowoodbigbowood Posts: 20member


    I guess I'll be using my soon-to-be-limited data plan to look up the number for Sprint.

  • Reply 14 of 38
    SpamSandwichSpamSandwich Posts: 33,407member

    Quote:

    Originally Posted by SteveLV702 View Post


    Well after reading this on several sites I emailed Verizon of my displeasure and just got this voicemail


     


    http://dl.dropbox.com/u/1971965/VerizonWirelessUnlimitedPlan.m4a


     


     


    Then a few minutes later I got this email



     


    Just a friendly word to the wise, Steve. You should completely remove or carefully cover up your personal information, because it is very easy to see and read everything you covered in the image you posted.

  • Reply 15 of 38
    gwmacgwmac Posts: 1,800member


    The article said AT&T throttled their unlimited after 4GB, that is incorrect. They throttle after 3GB.


     


    What is more galling is that Verizon has been running a double your data for LTE phones for a while now. Since this special was for LTE phones only that cut iPhone customers out. So you can sign up for a 2GB data plan which is not too expensive, and they give you 4GB but only on Android LTE phones. But now when the next iPhone with LTE is around the corner they start cutting back on data plans. I bet Apple is not too happy about them offering such a great deal only for the competition. 

  • Reply 16 of 38
    shadowxprshadowxpr Posts: 162member
    Well iPad AT&T unlimited does not get throttle and the iPhone does but at least you still get I telnet service. Still FCC or congress. Should intervene because being online now is like a utility...
  • Reply 17 of 38
    charlitunacharlituna Posts: 7,217member
    ckamerongo wrote: »
    .

    The bottom line is that they should not offer something they can't back up. My dad used to say to me, don't let your mouth overload your ass, and that's exactly what both Verizon and AT&T did. I think they need to honor their original commitment to us, if they force me into a tired model, I will most certainly unlock and then go to a month-to-month from someone else.

    On the contrary, they have every right to set up whatever rules they want and to not let you stay on the old terms when you are signing or renewing a contract. If you don't like the changes, don't sign the contract and take your business elsewhere.

    Heck, legally they can change the rules for 3G service today and your choices will be agree or cut your service ad they can't charge you an ETF

    .
  • Reply 18 of 38
    charlitunacharlituna Posts: 7,217member
    shadowxpr wrote: »
    Well iPad AT&T unlimited does not get throttle

    Give it time. If the usage ever gets as high as the phone on a constant basis it will be throttled. The iPad is saved for the moment because you don't have to have the service on all he time. With the iPhone you pay no matter what so you might as well use it. That said most folks aren't entitled jerks that leave their wifi off and use their 3G/4G all the time so rarely do they hit the throttling mark for it to be an issue
  • Reply 19 of 38
    thejdthejd Posts: 37member

    Quote:

    Originally Posted by BigBillyGoatGruff View Post


    I wish someone would do a pay-as-you-go model.  No monthly rate, just sell 10GB at a time.  Let people use it however, whenever they want.  Obviously this will never happen with phones, probably never will with other gadgets.  But, I would actually use an iPad data plan if I could do this.



    I don't know if it works for the iPhone, but Straighttalk is allowing customers to bring any ATT compatible smartphone to their service.  You bring the phone, they bring the sim.  He was up and running in five or 10 minutes and for $45 a month he's got unlimited everything on 3G.

  • Reply 20 of 38
    suddenly newtonsuddenly newton Posts: 13,808member

    Quote:

    Originally Posted by Oblena View Post


    "A lot of our 3G base is on unlimited," Shammo said. "When they migrate off 3G they will have to go to data share. That is beneficial to us."


     


    Ya' think?!?!?! Because I am sure they didn't make enough money before!



     


    That's the wrong photo. Here's the right one:


     


    Fran Shammo, in cartoon form.


     


    Verizon CEO Fran Shammo

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