Verizon Considers Data Family Plans, Android Killing RIM
December 13, 2010 9:18 AM
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Verizon Wireless CEO Daniel Mead.
(Source: The Wall Street Journal)
Big Red iPhone 4 launch could have lower-than-expected impact on carrier
Newly appointed Verizon Wireless CEO Daniel Mead spoke with
The Wall Street Journal
recently about his vision for the future of his company and the wireless industry, which includes the possibility of "metered pricing" for data, and a shared-data family plan option.
"We have not moved
in terms of unlimited for consumers
in the $30 price point. Some day we may consider metered pricing. We haven't made any final decisions there yet," Mead, who took over as CEO in October,
When asked whether he would consider family plan pricing for data, Mead responded, "We've shared voice minutes and text messages for the family. I think it's fully in the realm of possibility in the not-to-distant future to be able to start thinking through the options ... That's a vehicle to get there." He called it "account-level pricing."
Throughout the interview, Mead talked
("It is a very practical and encouraging substitution for DSL, particularly when you look at rural markets.") and the future of mobile devices ("I think the world for the next few years is going to be more around tablets and smartphones.") He also mentioned that he felt as if Verizon was hitting "another growth spurt" and was thinking about 300- to-400-percent market penetration (meaning three to four devices per person).
Meanwhile, according to
new sales numbers
released by ITG Investment Research, Android demolished RIM's Blackberry sales at Verizon over the last year. In October 2009, RIM's smartphone share of Verizon sales peaked at above 90 percent. Since the launch of multiple Android phones from the likes of HTC, Motorola, and Samsung, RIM's share has plummeted to just 19 percent. Devices powered by the Android OS now make up 80 percent of all smartphones sold at Verizon, which does not bode well for RIM.
The [RIM] decline
is led by the lack of a Storm refresh, dwindling sales of the Tour/Bold series, and a failure of the new Curve 3G to yet replace diminishing sales of the Curve 8530," an ITG representative said.
But LTE and iPhone 4 speculation could actually hurt Verizon in the busy holiday season. ITG expects it to be a slow one, "owing to an expected launch of the iPhone and 4G LTE handsets" in the coming months. Potential shoppers could be holding out for the newer devices set to launch in the first quarter of 2011.
new sales numbers
show that if an
iPhone 4 is released on Verizon's network
next year, it could have a low impact compared to what analysts previously predicted. The devices that perform best are the ones that are frequently being rolled out and refreshed, as evidenced by the figures, than those that are static and see yearly refreshes. This approach is evident in the recent success of Motorola, which has steadily rolled out updated Android phones.
"Given the fact that the two latter smartphones [Motorola Etna and HTC Droid Incredibly HD] will connect to Verizon Wireless' new LTE network, and the fact that quite a few Apple fans will wait for the iPhone 5, we think the iPhone 4 would primarily cater to those who are currently buying mid-range smartphones such as the LG Vortex," the folks over at
This prediction is bolstered by the fact that Steve Jobs recently told investors the iPhone would see slimmer margins moving forward.
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RE: Family (shared) data plan would be nice.
12/13/2010 10:48:36 AM
Rather than having them pay full price (plus get slammed on deposits due to lack of credit) why not get a family plan and have them pay you for service. i.e. if family plan is $100 per month then they pay $25. Teaching responsibility while still being less expensive than paying $80+ for an individual plan.
One can teach responsibility without forcing them to get a bad deal. Your kid still learns responsibility, the family saves some money. The only "loser" is Verizon shareholders.
If anything it might make them more responsible with money. After years (say age 15 to 18) of paying $25 per month the idea of paying $100+ for an individual plan with all the bells and whistles will seem like the ripoff it is.
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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