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Verizon to drop unlimited iPhone data plans

During the Morgan Stanley Technology, Media and Telecom conference on Tuesday, Verizon CFO Fran Shammo confirmed that Verizon will be moving to tiered data plans as early as this summer. Speaking about the unlimited data plan available with the iPhone 4, Shammo said, "Everyone knows that isn't long-term. We will move to tiered pricing in the mid-summer time frame." The iPhone 4 was launched with a $30 monthly plan that included unlimited smartphone data. The company previously offered a $15/150 MB plan that appealed to some customers, but this plan was removed when the iPhone 4 launched.

Verizon is hoping tiered plans will grab entry-level customers who want a smartphone, but don't want to pay the high price for cellular data. A low-cost data plan would entice those on the fence to take the plunge and pick up a smartphone. Verizon currently has 25 percent smartphone penetration and hopes to use these low-cost data plans to boost that rate to 50 percent by the end of 2011. Shammo would not confirm the price of these tiered plans as the entry level price point is still under discussion. Last year, AT&T introduced tiered data plans with a $25 / 2 GB plan for smartphone owners. Verizon would most likely equal or beat the value of these AT&T plans.



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During the Morgan Stanley Technology, Media and Telecom conference on Tuesday, Verizon CFO Fran Shammo confirmed that Verizon will be...
 

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Garrett

When AT&T went from unlimited to tiered pricing before releasing the iPhone 4, people who upgraded their current phone to the iPhone 4 kept their existing unlimited data plans; it was only new customers who had to chose from the new plans. So here's my question: Will Verizon strip those of their unlimited data plans or is the change limited to new subscribers?

March 23 2011 at 11:59 AM Report abuse rate up rate down Reply
SCOOTER

Sprint will see an influx of new customers if they remain the only provider of unlimited data when Verizon changes it's plans. Whenever the consumers decide to revolt against the idea that the carriers are more concerned about their ways of doing things versus the wants and needs of the very people who make up the company in the first place...THEIR CUSTOMERS!!

Why offer products that " do everything ", then decide to cut the plans that make them useful?...ie: Netflix...One major selling point for Netflix is the ability to watch the movies on your smartphone...How can you subscribe to netflix, download the app on the Verizon iPhone, then utilize the subscription with a half-ass data plan? Or include YouTube as a preset app, then tell it's customers, "You only have limited use" or pay hefty data charges...

If some customers only need 2G's of data per month, let them pay for 2G's of service...The iPad & iPhone were created to represent the very best of technology, therefore, a data plan should represent that, and the $29.99 unlimited data plan was more than fair for the customers needing it.

With the onslaught of more and more mobile carriers, combined with the horrible economy, that does not have an end in sight, I say "Bring it On"...I will be the first in line if Verizon ever takes away my unlimited data plan!!

March 02 2011 at 1:52 PM Report abuse rate up rate down Reply
Yuusharo

I'm at a crossroads here. On the one hand, I have a Verizon account and love the service, but I also have a suspended AT&T iPhone account with an unlimited plan that's set to go back active this June. AT&T has shown that it is willing to maintain that unlimited plan even if you are upgrading smartphones at the best price - Verizon hasn't.

So here's the deal - Is Verizon going to let us with unlimited plans continue to use them if we upgrade to the iPhone this summer? Or are they going to take that unlimited option away if you upgrade? I tell you, while AT&T's service isn't as good, if it means I'll be able to keep that unlimited plan for life, I'm leaving Verizon in a heartbeat.

I realize I'm a strange case, but seriously, screw the carriers. They make *plenty* of money while offering unlimited plans. They just want to make a little more on our expense. Besides, why would Verizon try to beat AT&T? If the only two carriers in the US with the iPhone sell it with the same plans, what are we going to do except moan about it and eventually still buy it? Real nice "choice."

March 01 2011 at 8:12 PM Report abuse rate up rate down Reply
1 reply to Yuusharo's comment
natebrogdon

It's the difference between the devil you DO know, and the devil you don't. What are the chances AT&T will improve their network to compete with Verizon. Likely. What are the chances that Verizon will NOT change their pricing scheme? Well...looks like they already are. AT&T has already demonstrated that your unlimited plan is safe. Verizon...not so much.

It's a gamble either way.

March 01 2011 at 9:14 PM Report abuse rate up rate down Reply
AppleZilla

All carriers stink.

March 01 2011 at 6:31 PM Report abuse rate up rate down Reply
Dan Pritchard

> "Verizon would most likely equal or beat the value of these AT&T plans."

How is this "likely"? Before the iPhone came out, Verizon made clear that they were comfortable setting pricing higher than AT&T-- their lower tier was $15 for 150MB, compared to AT&T's $15 for 250MB. I would be shocked if Verizon even attempted to compete with AT&T on price, given that every bit of their marketing consists of one single message-- "We are the best network, in fact, we are basically the ONLY network that has any coverage at all, really. All the other guys are s#%t, especially AT&T." They never mention pricing. Given that, they obviously position themselves as the "premium" carrier, not the "value" carrier. Theoretically, their customers think they're paying a premium for superior service. Of the "big two," AT&T is the "value" carrier, given their lower data prices and Rollover minutes. Of course, T-Mobile and Sprint are the real value carriers in the U.S.

March 01 2011 at 6:27 PM Report abuse rate up rate down Reply
brotkel

As someone who bought a 3G iPad in May only to have my unlimited data option disappear in June, I'm really sick of these bait-and-switch plans where you only get a good deal so that you can help drive up initial sales.

March 01 2011 at 5:27 PM Report abuse rate up rate down Reply
2 replies to brotkel's comment
etiffany

If you signed a contract for unlimited, how did they change the terms? Or was this a month-to-month setup?

Even in the latter case, given the monopoly that ATT enjoys for GSM service on the IOS devices, this seems to border on an illegal bait and switch. Unless you could get GSM service from T-Mobile (with unlimited data). Which you probably can't.

March 01 2011 at 5:58 PM Report abuse rate up rate down Reply
brotkel

The iPad has always been month to month. If you stay on the plan every month, you could keep the unlimited data after the first month, but it was advertised as unlimited data with no contract and I wasn't interested in buying data every month if I wasn't going to be using it.

March 01 2011 at 6:14 PM Report abuse rate up rate down Reply
Randy

Why can't they keep the unlimited plan, and introduce the tiered plans for the light/cheap users? Why does it have to one or the other? If they're so interested in offering "choice" why not give the customer something to choose from?

March 01 2011 at 5:27 PM Report abuse rate up rate down Reply
1 reply to Randy's comment
Jake

Infrastructure vs. profit. The business model for mobile companies in the US (maybe everywhere, I don't know) is to charge the maximum the market will accept while building out the least amount of infrastructure required to run service dependably enough customer dissatisfaction will not cut into their overall profit. Their profit vs. infrastructure development calculations are easier with predictable usage, and unlimited data is not predictable usage. They want everyone nailed down to two-year finite everything plans, because that makes it easier for them to measure how much/little they need to do to maximize their return. Corporations fear the unknown. They'd rather anger customers than have to say, "Well, we'll have to see how much data people use before we can say anything about profit" to their shareholders.

March 01 2011 at 6:04 PM Report abuse rate up rate down Reply
Jake

All your contract are belong to us.

March 01 2011 at 5:25 PM Report abuse rate up rate down Reply
2 replies to Jake's comment
etiffany

nice reference.

I'm also curious what sort of person would buy a Verizon smartphone (of any sort) and not want to use a lot of data.

March 01 2011 at 5:33 PM Report abuse rate up rate down Reply
Kleinias

This is just a guess, but perhaps the kind of person that is around WiFi most of their day. They may just want to pay a little less if they are not going to need an unlimited carrier data plan.

March 01 2011 at 10:17 PM Report abuse rate up rate down Reply
deviladv

Just another attempt at wireless companies to get more money out of you by not providing a pricing point for unlimited usage and just hoping you go over your contract.

March 01 2011 at 5:21 PM Report abuse rate up rate down Reply
1 reply to deviladv's comment
Miles

Or having tiered pricing that is nearly as expensive as unlimited but cuts you off at a much lower point. $150+ cell phone bills aren't going anywhere in my future it seems : (

March 02 2011 at 7:37 AM Report abuse rate up rate down Reply
Corby

That didn't take long.

March 01 2011 at 4:55 PM Report abuse rate up rate down Reply
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