Verizon May Announce AT&T-like Tiered Data Caps by July 29
July 21, 2010 1:10 AM
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Datapocalypse may be almost upon us
raised a ruckus
early last month when it announced tiered, capped data plans, doing away with "unlimited" data for its smart phone users. Now Verizon is rumored to soon to be following in suit.
Verizon already offers tiered capped data plans for its 3G PC wireless internet cards ($39.99, 250 MB a month; $59.99, 5 GB a month). However, its smart phone users currently enjoy a single "unlimited" data allowances capped at a relatively high 5 GB.
began the rumors early last month when it
as saying that Verizon was likely to ditch the unlimited option and switch to a tiered pricing scheme. Now
that this prediction was correct and that its sources say that a tiered pricing scheme will likely land by July 29.
The report says that the pricing scheme will likely be around that offered by AT&T ($25 for 2GB, $15 for 200MB). That would mean that Verizon users would ultimately be paying more per MB than they are currently.
that it may adopt a tiered scheme at some point.
All indications are that T-Mobile and Sprint, though, have no intentions of following Verizon and AT&T into the world of capped connections. Sprint is instead opting to charge users
a small premium ($10)
on its 4G connections -- T-Mobile may adopt that alternative approach as well.
Will customers embrace AT&T and Verizon's tiered, capped data plans? Or will they rebel and jump to Sprint and Verizon and agree to pay a nominal fee if they want their data to be transferred at faster rates? Only time will tell, but it should be interesting to watch for whether Verizon officially airs a tiered smart phone data scheme.
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RE: If they do.....
7/21/2010 5:06:21 AM
This is exactly where the "invisible hand" doesn't work. It's easy to say you can swap to another carrier (ignoring the quality of the network etc), and theoretically the ones with the best prices will get the most customers fueling competition. The problem comes from the fact that if everyone gets reemed by all the telco's matching each others price offerings, everything will stagnate. There can't be any new players to change the status quo because start up costs are too expensive.
Petrol has had this happening for years - even being dumb enough to actually have price setting meetings where they managed to get caught. For every cockroach you see there's 9 you don't, it's astounding how much of this sort of thing must go on. Well it's not really astounding, its common sense. Also they don't have to do anything illegal just to match each others pricing scheme.
I'd guess that the tiered pricing will become standard, with no one giving a "great" deal compared to anyone else, and the companies will instead focus on the individual handsets to do battle with.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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