End is neigh for Verizon $30 unlimited plan (Source: Apple)
Verizon predicted to sell 2M iPhone 4s this quarter
Verizon Wireless has finally landed that iPhone that it has wanted for so many years. The sales of the iPhone 4 on the Verizon network are a mystery so far, and some suspect that the sales haven't been that strong based in part on the lack of lines at stores on launch day.
The lack of lines may not be a good indicator with Verizon CFO Fran Shammo announcing at a Morgan Stanley conference this week that many of the buyers of the iPhone 4 on Verizon have purchased online. Shammo claims that 60% of the iPhone 4 smartphones that Verizon has sold were sold online. One of the ways that Verizon lured customers to the iPhone 4 on its network was to offer an unlimited data plan for $30 monthly. Analysts predict that Verizon will sell two million iPhone 4 smartphones this quarter reports Bloomberg.
That unlimited plan was certainly what moved some users to migrate from AT&T where they may have been grandfathered into the AT&T unlimited plan on the iPhone 4. However, Shammo notes that the unlimited plan will not last forever and Bloomberg reports that the plan could end as soon as this summer. Shammo said the unlimited data plan was "not a long-term solution."
Verizon has previously noted that it will throttle data for the top 5% of users, especially in areas where those heavy users threaten the speed of the network on the whole. Verizon also sees more profit in removing the unlimited plan. Shammo said, "We have a very big opportunity at Verizon Wireless because 67 percent of our customers are either feature phones or multimedia phones. We see the potential of our customer base spending in that $30 to $50 range.” Many of the feature and media phone users can opt for an optional basic data plan for $10 per month.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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