backtop


Print 76 comment(s) - last by Omega215D.. on Jun 21 at 5:27 PM


  (Source: 1techportal.com)
Plans are essentially $5 more than AT&T's

Verizon's plans to replace its unlimited data service for mobile customers with a tiered plan more akin to what AT&T announced last summer have been no secret in the industry. In fact, we first reported about Verizon's intentions nearly nine month ago. But it looks like the incubation period is finally coming to an end.

After months of small-scale trials and family plan experiments, it looks like Verizon is ready to implement its tiered data plans as early as next month. July 7 is the magic date, according to AppleInsider

Adding credence to that claim is the fact that a Verizon spokesperson confirmed to AllThingsD that new data plans are coming next month. "We will move to a more usage based model in July," Verizon spokeswoman Brenda Raney said in an e-mail. "We’ll share more later."

Meanwhile, it is Droid-Life that claims Verizon will be implementing the following data plans on July 7:
  • 2GB – $30/month
  • 5GB – $50/month
  • 10GB – $80/month
If you want to add tethering to the list, you will be allowed to purchase an additional 2GB per month for another $20. So, the 2GB plan would turn to a 4GB plan and run $50 per month, etc.

Data overages are $10 for every 1GB exceeded.

Also, tablet plans will change to $30 for 2GB of data instead of the present $20 for 1GB of data.

Finally, the pricing will be the same regardless of whether the device is 3G or 4G and will not affect customers currently under contract. 



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Tethering Fee Is Bull@*** and Nonsensical!!!
By Arsynic on 6/21/2011 9:12:55 AM , Rating: 5
Why the fuck do I have to pay extra for tethering? As long as I stay within the cap, why the fuck does it matter? This is fucking bullshit gouging by Verizon. They won't change. This is why more competition is better in the cell provider arena. If tethering causes me to go over my limit, then so be it.

It makes no sense to have data caps and then tell people what they can and can't do with their data allotments. I guess this is what happens when consumers effectively lease their phones from cellphone providers.




RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By smackababy on 6/21/11, Rating: 0
RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By Solandri on 6/21/2011 10:34:40 AM , Rating: 4
No it doesn't make sense. It's like charging $0.44 postage for a 1 ounce letter. Unless the letter was typed on a computer; then it'll cost you $0.75 postage, even though the work of delivering that letter is exactly the same.

It's a leftover artifact of unlimited bandwidth accounts. Tethering tended to use more bandwidth than just smartphone use, so they were justified in charging extra for it when usage was unlimited. Now that they're charging based on data usage, there's no more justification for it. Bits are bits - doesn't matter if they're coming from your phone or a tethered computer if you're being charged by the bit.

The market will temporarily bear it because some people haven't figured this out yet, but that doesn't mean it makes logical sense. Most folks will probably just root and tether, and feel completely justified doing it because how illogical it is.

The only way it makes sense is if you consider the $20/mo surcharge for using the tethering app. In which case then it's incredibly overpriced. No phone app I know of comes anywhere close to costing $240/yr.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By SunAngel on 6/21/11, Rating: 0
By Solandri on 6/21/2011 11:02:50 AM , Rating: 2
quote:
Tethering consumes data faster than handhelds and smartphone. You are actually paying for the additional burden placed on the network from using a data card or tethering.

I have no idea where you dreamt that up. The smartphone pulls data off the internet at the same speed, whether you're using the smartphone's browser, or a browser on your laptop tethered to the phone. I can run Speedtest.net's app from my phone, and my tethered laptop, and they give the exact same results. Even if it weren't so, it'd be trivial to simply cap "unauthorized" tethering to reduce its bandwidth to the same as smartphone data.

OTOH, if you mean in a month a tethered computer will consume more data than just a smartphone, then I agree completely! That's the whole reason they're switching to tiered data plans - so the people consuming more GB every month will have to pay more. But once you do that, whether that GB comes straight from the phone or from a tethered computer doesn't matter.
quote:
This is the very reason wireless providers have two separate plans...one for voice, one for data. If you need data services you need to purchase an aircard.

Nobody is arguing about voice vs. data. Voice and data are separate networks (which is one of the reasons text messages are overpriced, but that's another discussion). What we're arguing about is data used by the phone and data used by something tethered to the phone. They are indistinguishable to a carrier who is charging per GB.


By TheMan876 on 6/21/2011 11:35:04 AM , Rating: 2
And if I'm tethering to another smartphone, iPod, iPad, or Android tablet?


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By MrBlastman on 6/21/2011 11:51:52 AM , Rating: 2
It is gouging and it stinks. It is also their network and they can charge whatever they want. The consumer will determine if the supply is worthy of their demand.

So, we can choose whether to pay for Verizon's service or not use it at all...

... Or people can hack their phones to circumvent the limits and get around it that way. If they want to game people, the people can game them right back. Technically you're paying 20.00/month extra for 2 GB more a month. What if you don't need the 2 GB more a month? What if you only occasionally tether when you travel. That isn't worth the 2 GB for sure.

I dunno, I don't even have a smartphone but that is something to consider.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By erple2 on 6/21/2011 4:30:36 PM , Rating: 1
It is gouging and it does stink. It's also a free market - you're perfectly within your rights to drop Verizon like a bad habit, and go with ATnT, a company that does the exact same thing. Or you can drop those two, and go with Sprint. Who doesn't. Or you can drop those 3, and go with number 4 - T-Mobile. Or find some fly-by-night cell service provider.

There's nothing that's REQUIRING you to actually have any loyalty to one particular company over another. The ETF's are there to "help" the company recoup "losses" they incur with a subsidized phone, provided you don't actually use the service. Nobody would buy these contracts if you had to pay the actual cost of the phone ($600+) rather than the subsidized price. Either way, that stinks too. However, you signed a contract. In good faith, you have to do what you reasonably can to honor that contract. Similarly, if Verizon decided to change the agreement after it was signed, you also have the right to terminate the contract. There are other stipulations on what it means to terminate one of those contracts, however, and those are things that you've already signed off about (ie carefully READ the contract for that 2 year plan before you actually sign it - there's lots of creepy stuff in there). And the ability to not pay is not a right that can't be signed away.

If you're pissed off about this tethering charge nonsense, what you should probably do is switch to a different carrier, rather than hack these limits.

They're not actually gaming people - they're quite upfront about the charges. I personally think that the service isn't worthwhile, particularly given the fees. So I won't be buying a tethering plan any time soon.

If nothing else, the big two cell phone companies are learning from each other - ATnT has been financially very successful with its tiered plans. Verizon figured out they can do the same thing, so they have.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By aharris02 on 6/21/2011 4:59:52 PM , Rating: 2
The problem people have with our carriers is not necessarily the prices, it's the lack of alternatives we've been given. If we don't like one carrier, we have one or two other choices? I'm sorry, but that's not exactly what I call a "free market"... and it's exactly why the AT&T/T-Mobile deal is terrible for consumers.


By 225commander on 6/21/2011 5:26:27 PM , Rating: 3
Yes..I love how you walk into a kiosk and ask about plans and they say 'Oh yeah its 'unlimited data' (at a 4gb cap)' and then in the same breath claim they need to charge an extra $15/mo 'if you want tethering of that data', hmmmmm lemme think about that,
aww naw I cant do that lady, im thinking,
ROOT-n-WOOT = Providing tethering 'Right Fukin Now'
for exactly $0/mo

~les


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By kjboughton on 6/21/2011 10:42:44 AM , Rating: 3
Free market!? FREE MARKET??!

We haven't had a "free market" in a loooong time, buddy. Try about 80 years or so. I'm not convinced you have any idea what a free market really is.

Wake up.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By MrBlastman on 6/21/2011 11:53:00 AM , Rating: 1
Our free market system is in danger of being completely overrun by lawyers...


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By aharris02 on 6/21/2011 1:26:30 PM , Rating: 2
And lobbyists... and the currently way-too-friendly to big business environment our legal/lobby system has established over the course of the past half-decade.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By FITCamaro on 6/21/2011 2:46:32 PM , Rating: 1
Yes because the current administration is just so friendly to business.

Maybe the businesses it runs/owns.


By aharris02 on 6/21/2011 3:06:51 PM , Rating: 2
Umm... what?


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By idiot77 on 6/21/2011 3:08:41 PM , Rating: 1
Nice FUD there dude. Got something to back any of that BS up?

You act like the government hasn't been largely bought by the private sector. I'd ague if anything government is the subsidiary of business. Most individuals can't afford to give out those large sums unless they are business owners. It's not me or you hiring lobbyists.

Specially the Republicans that take about 2-4:1 in donations from business depending on the race/year.

It'll just get worse with these "Super PACs" that the corporatists on the SCOTUS effectively created. Good thing we don't have any judicial "legislation" that Republicans cry about all the time, except of course when it's their whims being done.


By aharris02 on 6/21/2011 3:17:30 PM , Rating: 1
Finally, someone else who demonstrates logic and knowledge on the interwebs.

What's really sad is it used to be Dems who were known for being ProBigBiz; the result of the SCOTUS and its decisions to open up campaign financing to everyone is that all politicians have to be ProBigBiz to even compete.

What they seem to have forgotten is that big businesses and political kickbacks, among other things, will cease to exist when the remainder of the middle class finally whittles away.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By idiot77 on 6/21/2011 2:58:34 PM , Rating: 2
Duh? That's how a free market works. There is no regulation to protect consumers or companies. In a truly regulated market there is fewer lawyers because if you do X, Y, Z they give you protection from lawsuits. No such mechanism in a free market so the answer is litigation.


By MrBlastman on 6/21/2011 5:00:11 PM , Rating: 2
Lawyers are vampires on a free society.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By Lifted on 6/21/2011 10:53:08 AM , Rating: 2
So you don't have a problem if Verizon decided to charge you extra to

Use a bluetooth headset?
Play mp3's on your phone?
Use Opera instead of their browser?
Use google maps instead of VZNavigator?
Use your phone while in a moving vehicle?
Use on the speakerphone?
Add a custom ringtone?
Take pictures?
Copy pictures off your phone?

Where do we draw the line? What if your home ISP charged you extra to use wifi w/ your connection (assuming they had some way of blocking its' use)? Would you be OK with that too?

ISP: "You can use wifi now for only $9.99/month."
You: "Wow, free market is great!"


By NullSubroutine on 6/21/2011 11:37:20 AM , Rating: 2
I think its a lot of bunk, I pay $30 a month for unlimited right now. They say our current plans are unaffected but this move will effectively prevent me from ever renewing a contract with Verizon.


By cjohnson2136 on 6/21/2011 11:44:28 AM , Rating: 2
See now I heard on the radio this morning that even when you renew your contract you could still keep the unlimited as a way to prevent people from jumping ship.


By NullSubroutine on 6/21/2011 12:05:07 PM , Rating: 2
I'd have to see the writing on that as I have no doubt some sales person would say something like that and it not being true in the TOS.


By cjohnson2136 on 6/21/2011 12:55:59 PM , Rating: 3
I totally agree I would look into it more but I switched to Sprint anyway cause it was cheaper so I don't care anymore about it


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By Omega215D on 6/21/2011 4:26:32 PM , Rating: 2
Well when Verizon stopped offering their $15 data plan for smartphones I was offered to keep that plan when upgrading my phone and contract. I didn't keep it because I started seeing more data usage off wi-fi and I also wanted to have LTE w/ video chat capabilities.

Now that I have my Thunderbolt I can be grandfathered into my unlimited data plan until whenever.


By DanNeely on 6/21/2011 4:58:31 PM , Rating: 2
If you don't have teathering now, I suspect adding it later will kill your unlimited plan.


By Mr772 on 6/21/2011 12:44:21 PM , Rating: 2
There is only one way to protest, cancel your service and/or switch to another carrier service.

Sprint is the last carrier to offer unlimited data and their plans are priced better too.

Sprint phones are same technology as Verizon and roam on Verizon Towers so you get similar coverage with ulimited data at a better price.


By erple2 on 6/21/2011 4:37:17 PM , Rating: 1
I don't have a problem with that at all. I don't care if they decided that I would have to pay $10,000 per month for their service.

I will, however, have a big problem if I'm legally required to purchase their services, however.

Free Market would work if a competitor figured out that these charges were just plain silly, and provided a reasonable alternative. Then Verizon wouldn't be able to compete, and they'd have to alter their pricing as appropriate.


By Sazabi19 on 6/21/2011 9:47:07 AM , Rating: 3
Why? Becuase they can charge you. What are you going to do? Leave? The next company you go to will do the same, the other companies are doing it and just getting more money for it even with the customers they lose. A startup company? Not likely the way the Govt., lobyists, and these already huge companies are doing things. The next generation of people are going to be used to this, after a while people become complacent and no one will question this. It is happening every day all around you. Most people just don't see what is really going on yet.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By ProCrast on 6/21/2011 9:47:23 AM , Rating: 2
Well said and correct. Tethering charges are purge gouge. The carriers are simply feeding on the weak as usual. I mean it's just $20/mo and you're already paying $100/mo anyway!


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By mcnabney on 6/21/11, Rating: -1
RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By quiksilvr on 6/21/2011 10:13:14 AM , Rating: 2
You are missing the point entirely. Verizon eases the pain by giving you an extra 2GB for the $20, but suppose you don't want the extra space? You are already paying $30 for the 2GB of data. What if you just want to use those 2GB for web browsing on your laptop for a bit? Maybe I'd rather not use a 4" screen at the moment. It's not like you're taking advantage of the company. Those 2GB are YOUR 2GB. You should be free to use them in whatever device you wish.


By mcnabney on 6/21/2011 11:43:38 AM , Rating: 1
No, you missed my point.

Tethering is a direct competitor to another product the carrier sells - aircards. Providing free tethering undercuts the value of having a separate data line for your PC. They have the fee in place to maintain product segmentation.

$30 unlimited smartphone + $20 tethering = $50
Standalone aircard access = $50

They are just trying to prevent consumers from paying less using a smartphone + tethering versus aircard only. Adding tethering brings the cost inline with aircard service - and is actually a better deal because of the smartphone access.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By Arsynic on 6/21/2011 9:55:55 AM , Rating: 2
This is like ISPs charging an extra $10 a month for a "home networking fee" if you had more than two computers in the house. Then people bought routers and that solved that problem.

This is one more reason to root my phone.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By mcnabney on 6/21/2011 10:07:29 AM , Rating: 1
Enjoy your $350 ETF.

You really think the carriers can't tell when a Mac/PC is accessing data on a plan marked for a smartphone only?


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By Solandri on 6/21/2011 10:39:14 AM , Rating: 5
That's kinda his point. If the plans are now tiered and you're paying by the GB, then you're no longer paying for a "smartphone-only" plan. You're paying for 3, 5, or 10 GB of data, period. Whether the carrier can tell if you're using a Mac/PC is irrelevant.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By mcnabney on 6/21/2011 11:44:33 AM , Rating: 2
I believe there is something coming that will address that issue specifically.


By HammerZ on 6/21/2011 4:37:41 PM , Rating: 2
What might that be?


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By idiot77 on 6/21/2011 3:00:53 PM , Rating: 2
Not the same at all. Cable and FiOS (so far) are regulated markets. They would do that in a heart beat if there were allowed to.


RE: Tethering Fee Is Bull@*** and Nonsensical!!!
By Jaybus on 6/21/2011 3:51:42 PM , Rating: 1
The root of the problem is that I cannot use my Droid with whatever carrier I choose. Why not? Because the carriers are licensed for particular frequency bands and use different encoding schemes. A Verizon Droid could probably be made into an AT&T Droid with a simple firmware change, but it doesn't matter, because they will not do so. Therefore, they are stifling competition by locking their phones. It makes it more expensive to change carriers that it should be. Therefore, why SHOULDN'T they be regulated as a monopoly.


By Omega215D on 6/21/2011 5:22:08 PM , Rating: 2
No it cannot. Verizon and Sprint are primarily CDMA while ATT and T-Mobile are GSM. Yes, Verizon and Sprint offer Global capable phones but they only work on GSM when it is detected to be out of the US or if you unlock the phone.

In my experience Verizon will have no problem unlocking that phone for you if you have been a customer for more than 6 months and in good standing credit with them. Phones are locked because unless you bought the phone outright you have been subsidized by the company along with paying for their service and maintenance of said service. You are allowed to buy phones outright but are a much more expensive option and it is similar from what I hear from my friends over in Europe. Asia is a different story as for some reason phones are cheaper.

You should probably educate yourself on the companies and respective technology before making such a statement.


Here we go again....
By room200 on 6/21/2011 8:21:25 AM , Rating: 5
These companies think they can gouge customers forever. They then become surprised when people start leaving them in droves. It's only a matter of time before someone else comes along and offers some competition. Problem is, these companies end up doing the exact same thing which really leaves you no options in the beginning. It's like they meet with each other and agree to fix the prices.




RE: Here we go again....
By gamerk2 on 6/21/2011 9:27:32 AM , Rating: 2
First rule of market economics: Do not compete on price

No, theres no "per say" agreement in place by companies, just a mutual understanding that competing on price lowers profits for everyone. Hence why you see fights over "features", and why everyone bandwagons on a new pricing model a competitor implements.

And of course, due to high startup costs, its very unlikly any new entrents will enter the areana to compete, so you are limited to jsut the 2-3 companies and what they currently offer.


RE: Here we go again....
By bjacobson on 6/21/2011 9:46:12 AM , Rating: 2
quote:
And of course, due to high startup costs, its very unlikly any new entrents will enter the areana to compete, so you are limited to jsut the 2-3 companies and what they currently offer.


ah, the joys of oligopoly.


RE: Here we go again....
By mcnabney on 6/21/2011 9:53:02 AM , Rating: 2
Would you prefer socialism?


RE: Here we go again....
By cjohnson2136 on 6/21/2011 9:54:10 AM , Rating: 4
No but I would prefer more competition. That is why I think the AT&T and T-Mobile merger should be stopped.


RE: Here we go again....
By mcnabney on 6/21/2011 10:08:40 AM , Rating: 2
On that point, I really agree. US Cellular is also expanding - if the deal is blocked we might have five national carriers again soon.


RE: Here we go again....
By cjohnson2136 on 6/21/2011 10:16:48 AM , Rating: 2
5 national carriers would be great. Lots of competition.


RE: Here we go again....
By aharris02 on 6/21/2011 1:51:04 PM , Rating: 2
Oh that would be incredible.

I doubt the current 2 and a half major carriers will allow that to happen, but we can hope... right?


RE: Here we go again....
By Solandri on 6/21/2011 10:54:20 AM , Rating: 2
quote:
No but I would prefer more competition.

I think we goofed on several fronts here:

- The FCC shouldn't have sold the cellular spectrum. They should've leased it. If you sell something, after the initial purchase price (a sunk cost) there's no incentive for the owner to do something useful with the bandwidth. If you charge monthly rent for it, that creates an incentive for the owner to do something with it which creates a return on investment in excess of the monthly rent. This is the reason there are property taxes - so people do something useful with land in valuable areas (like downtown) instead of just sitting on it waiting for real estate prices to go up.

- Cell phone carriers should have been prohibited from owning towers and vice versa. That would've created an equal playing field for all companies in direct contact with the final customer, allowing them to compete based entirely on price and features offered. Those "carriers" would then negotiate with owners of tower networks, who themselves would compete with each other for business from carriers.

- We should have required that the "subsidy" to pay for your expensive phone under contract be listed as a separate charge in your bill. Right now, because it's mixed in with your monthly service fee, you have no way to know exactly how much you're paying for the phone, and for the service. In fact, aside from T-mobile, the carriers continue to charge you for the "subsidy" even after your contract expires (and you've paid for your phone), which should be illegal. T-mobile is the only company which reduces your monthly fee once you're out of contract.

- Carriers should be required to unlock phones after your contract expires. If you want to take your 3-year old phone across compatible networks (Verizon and Sprint, or T-Mobile and AT&T), you should be able to do so.


RE: Here we go again....
By mcnabney on 6/21/2011 11:54:55 AM , Rating: 2
1. They do lease it. The spectrum is only held as a license by the carriers for a limited period of time. They can actually lose it if they don't put it to prompt use.

2. Why? You apparently don't understand the complexities of wireless communications. The towers are only part of the system. The switches are far more important. By owning a large number of towers a national network can push things like 3G and 4G out on their timetable. Many of the roaming partners of AT&T, Sprint, and Verizon have never bothered to upgrade their equipment. That is why you will sometimes get stuck on 1xRTT or Edge. Do you really want all of the networks to be fragmented and outdated?

3. T-Mobile only embraced off-contract pricing as a way to better retain infrequent upgraders. The big three would rather have their customers stay under contract so their pricing reflects that. So to get the best value from the big carriers, upgrade your phone when eligible.

4. Only Sprint encrypted/locked their phones - and they have since stopped. Feel free to take your Verizon phone to any CDMA carrier or take your hacked iPhone to T-Mobile. The problem is that carriers want you under contract and won't always allow you to use older phones.


RE: Here we go again....
By kjboughton on 6/21/2011 10:55:43 AM , Rating: 2
I take it you think we currently enjoy a capitalistic system? This could not be further from the truth. Large corporations own this country and they do it by hiring lobbyist that bribe our "representatives" into passing legislation that his highly profitable for their business. This is NOT capitalism.

The corporations get richer, the politicians get their kickback (and get to retire with full medical benefits after just one term), and we, the taxpayers and citizens, get the bill.

Open your eyes and notice what's going on around you.

And no, I wouldn't prefer socialism. Although it might as well be...privatized gains with socialized losses has been the name of the game for quite some time now.


RE: Here we go again....
By mcnabney on 6/21/2011 12:02:53 PM , Rating: 2
The two party system allows this.

Right now a huge number of people in the US are single issue voters. As long as that is the case the incumbents win. So as long as the parties keep maintaining the battle over things like abortion, death penalty, social services, and discrimination it will never end.


RE: Here we go again....
By cjohnson2136 on 6/21/2011 10:40:04 AM , Rating: 2
quote:
First rule of market economics: Do not talk about market economics


Fixed it for you :)


RE: Here we go again....
By ksherman on 6/21/2011 11:01:47 AM , Rating: 2
Except there is no where to run to. All the carriers are doing the same thing.


RE: Here we go again....
By Omega215D on 6/21/2011 5:27:19 PM , Rating: 2
Maybe MetroPCS will save us?


::sadface::
By Sazabi19 on 6/21/2011 9:27:15 AM , Rating: 2
This sucks, but as much as I am upset that the choice has been taken away, I don't think I have ever gone above 2gigs with my Droid. With that being said I will be grandfathered in with my "unlimited" plan. On the bright side people who use an insane (loose term) amount of data on their phone can now use 10 gigs (capped at 5 for "unlimited"). Looks like our buffet is being taken from all of us from the providers :(




RE: ::sadface::
By mcnabney on 6/21/2011 10:04:20 AM , Rating: 2
Your gas, electricity, and water are all metered. Wireless data is an even more limited product. Only so much bandwidth available and what exists was purchased for a hell of a lot of money.


RE: ::sadface::
By beerhound on 6/21/2011 12:01:44 PM , Rating: 2
I agree that a metered plan makes sense for the carriers and for all but the heaviest users, but they aren't switching to a metered plan, they are switching to a tiered plan. Moreover, they are using this to hide the fact that they are jacking up the price for the data.

Example: ATT's former "unlimited" plan cost $30. They often enforced a "soft cap" of 5 Gb on heavy users. 5 Gb x 1024 = 5120 Mb. $30/5120 Mb = .59 cents per Mb. (rounded off) So that is the market value ATT placed on their data. ATT's current datapro 4 Gb plan costs $45 a month for 4 Gb or 1.1 cents per Mb. The 200 Mb plan costs $15 or 7.5 cents per Mb. They gave people that uses less data a smaller plan that costs less overall, but the cost per Mb for the data has jumped greatly.

Someone else mentioned the cost of starting a competing company being a barrier to entry in that market. I've often wondered if I had access to the billions that it would take to start a company, how well could I do with a different price model.

Since customer service, field techs, etc are all relatively stable costs, there would have to be a fixed base charge to cover those costs and then a metered charge for actual usage. Say $30 a month plus .5 cents per Mb used. That would allow the carrier to be profitable without gouging the low date use customers while still making money on the heavier users.

Thoughts?


RE: ::sadface::
By mcnabney on 6/21/2011 4:07:26 PM , Rating: 2
I'm just going to leave this right here.
http://www.phonearena.com/news/Verizon-Sprint-and-...


RE: ::sadface::
By acer905 on 6/21/2011 12:53:18 PM , Rating: 2
quote:
Your gas, electricity, and water are all metered. Wireless data is an even more limited product. Only so much bandwidth available and what exists was purchased for a hell of a lot of money.


Bandwidth = data transfer rate. MB/S NOT MB's

Water, electricity, gas, are indeed all metered on how much you use, because they are all physical substances. If you have 3 gallons of water, someone else cannot. Networks do not work that way. If you use 3 MB of data, it has no impact on someone else getting 3 MB of data. In a network, the transfer rate is king.

By getting your 3 MB of data at 300 MB/s, you have sucked up all the available bandwidth... for 0.01 seconds. Granted, during that time, nobody else can do much of anything. But the fact remains that data usage is not the correct meter for pricing. Why do you think ISP's have offered tiered speeds for internet forever.

Trying to charge for ultimate data usage is as backward as charging for the rate that you consumed electricity, or water, or gas. The networks just backed themselves into a corner by offering speeds that they can't handle, and are trying to find a way to scrounge for money so they can actually try to provide the services they offer.


RE: ::sadface::
By aharris02 on 6/21/2011 1:56:46 PM , Rating: 2
@mcnabney: so tell us, which wireless carrier do you work for?


RE: ::sadface::
By Jaybus on 6/21/2011 4:27:11 PM , Rating: 2
Yes, but the carriers are not pushing metered pricing. They are pushing tiered pricing. What if your utility company had a similar pricing scheme, say a 500 kWh plan for $100, a 1000 kWh plan for $130, and a 2000 kWh plan for $200, with an overage cost of $10 per 100 kWh. Would it be a fair pricing plan? It would be very similar to the pricing of wireless service.


Praying Sprint Keeps Unlimited
By Ristogod on 6/21/2011 10:18:24 AM , Rating: 2
I'm with Sprint. They've got their issues sure. Mostly coverage issues. But nothing that has adversely effected me too much. They gave me a free FemToCell to address reception issues at home.

Their customer service is not too shabby either. Haven't run into much corporate mentality.

Their plans are some what restricting, but no more so than their competitors. We had 5 phones on a plan. I wanted a smart phone. The plan had to be one where all 5 phones were on data (even though they couldn't use it) and charged as such, rather than just letting my single phone have data. Going to my own plan didn't save any money either. I checked competitors though and they were still more yet.

The biggest reason I'm with Sprint now though is their unlimited data (although they do have stupid costs involved with tethering/wifi hotspot, which is rape). If they change that, all hope will be lost. Each competitor in the marketplace will be as worthless as the next.




RE: Praying Sprint Keeps Unlimited
By mcnabney on 6/21/2011 4:13:25 PM , Rating: 2
You do understand that Sprint hasn't shown a profit for almost 5 years? Their business model of selling their services for less than their costs will have to end sooner or later. They have fired as many people as they can. Hell, they don't even operate their own network anymore - Sony/Ericsson runs the Sprint network. I anticipate they will be purchased SOON and drastic changes will take place. Losing the two discount national carriers (T-mobile is the other) in short order will certainly put upward pressure on the market's pricing.


This sucks...
By GruntboyX on 6/21/2011 12:50:22 PM , Rating: 2
Cost of Data is going up. I am ok with that, but I am not even offered the opportunity to eliminate my Voice option. I would love a smart phone...but with pay per minute voice option. I would then happily pay into these new data tiers. But its ridiculous because I have to pay 39.99 just so I can pay 30 bucks to use the device in the first place.

I wish someone made a hand held tablet, with a microphone and earpiece.




RE: This sucks...
By mcnabney on 6/21/2011 4:15:42 PM , Rating: 2
7" Galaxy Tab on every network. Bluetooth enabled. VoIP 'Ready'.


This is highway robbery
By Chudilo on 6/21/2011 2:11:11 PM , Rating: 2
These data plans are an obvious provocation to see if people will just suck it up and pay.

The lowest tiered plan should be less then the current unlimited price. 2 gigs is the minimum someone would need for email with pics, casual browsing, maybe a video or two / week on youtube , Facebook with photos. If they start changing overages for such casual smartphone usage it will cripple it, because you'll have to worry about what you're doing online the whole month. You'll have to think twice if you want to check your email on the go or wait to get home to do it on your computer. WTF is the point of having a smartphone then.

I listen to Pandora or podcasts for an hour 2ce a week and use navigation , plus casual browsing and 2-3 video on youtube / week. that totals to about 4gigs / month.

4-6 gigs per month on a family share plan for about $40-50 would be logical and reasonable. But that's not what they are going to charge me. They will charge me $60 for 2 separate data plans. What sort of a family share is this if you don't let me share anything?

Furthermore looks like I'm going to have to buy the stupid Samsung charge on July 5th .. then wait for the good phones to be released on the 7th and return it claiming some stupid problem with the phone to get the Dual core 4G phone that I actually want. I'll just have to screw them over just like what they are doing to me.




RE: This is highway robbery
By DanNeely on 6/21/2011 2:31:57 PM , Rating: 2
which new phone 4g is launching on the 7th? the only one I know about is the droid 3, which all the rumors say is going to stay 3g.


to bad
By gorehound on 6/21/2011 8:19:16 AM , Rating: 4
to bad for those who use phones with data and texting.
my phone is purposely dumbed down to use only as a cell phone.
i will not pay these corps extra cash for their ripoff scams.




RE: to bad
By gfhrtwwee on 6/21/11, Rating: -1
Bummer
By Brokn68 on 6/21/2011 10:31:35 AM , Rating: 3
I was hoping for a plan that was under $30 for those of us who don't use much data per month.




Movies, TV, Audio!
By DrApop on 6/21/2011 10:15:53 AM , Rating: 2
Oh yes, use your phone to watch all those movies, TV, sports, and listen to online audio streaming for hours on end! And now you can use those expensive tablets too! Want to link your tablet to your already current mobile service....well we charge for that too....or you can just get a second mobile service for that tablet and pay a connection charge and outrageous monthly data charges.

Oh but we have limited your data usage so don't spend too much time online with your phone or tablet or it will cost you even more!

I have a smartphone through my sister's friends and family with 200 mb/month usage....cost is around $20 bucks a month. Not worth it for me to pay $50-100 a month to be connected online at the hip 24/7.




Crazy!!
By Raiders12 on 6/21/2011 12:19:47 PM , Rating: 2
Wow $30 for 2 GB?!
If you use their estimator on their website, and say, you will visit a couple web pages a day, answer some email, send some pictures/receive, they estimate like 6-7 GB of usage, for those basic services. How do they expect a average smartphone user to fork over that much? What are they doing different that is causing them to come down to such strict limits? Why not start at 5 GB/mo? I bet that July 7 date is going to coincide with the Droid 3 or Galaxy S2 release just so they can dupe a bunch of consumers. What a joke!
I'm about to grandfather myself in for 2 yrs under Unlimited OR just cut myself from their cord period and go to Virgin Mobile USA.




data cap in general is stupid
By darckhart on 6/21/2011 3:19:35 PM , Rating: 2
carrier: we have the awesomest most powerful phones so you can email, surf, watch videos, talk, all at the same time!!!
you: awesome!
carrier: AND we offer it at 4G LTE speed! so you can do all of that stuff faster!!!
you: awesomer!!
carrier: but you only get 2gb of data transfer for 30$. and you can't tether cuz your 4.3" screen should be just fine.
you: oh... uh... wtf? it's my data. why can't i tether? and what am i gonna use my phone for in the remaining 15 days of the month?
carrier: buy more data duh!!! and buy our overpriced equipment that is made for laptops!!
you: oh.. this model sucks. screw you!




welcome to the future
By IlllI on 6/21/2011 12:29:08 PM , Rating: 1
this is only the beginning

i mean, what do you expect when 2 companies will soon own about 80% of all cell phone business in america?




“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls














botimage
Copyright 2013 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki