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Verizon may keep tiered data plan in place  (Source: Reuters)
Tiered data here to stay thanks to family plan users

Smartphone users that have been enjoying “unlimited” data use (for one set price) on devices like the iPhone for quite some time. This was good for heavy users because they could do all they wanted without fear of a massive bill at the end of the month. The problem for carriers came when smartphone sales exploded and people actually started to consume that data. 

Verizon has hinted around at tiered data pricing strategy for months and has even trialed a tiered plan for users that didn’t typically consume much data. Verizon started a $10 monthly data plan that allows a scant 150MB of data use monthly. The goal of the plan was to lure users on family plans that didn't typically use data to try it out.

Apparently the move worked and it seems tiered data pricing may be here to stay at the nation's largest carrier. Verizon CEO Daniel Mead told Reuters at CES, "We've been very encouraged by that [family plan user data adoption]. We think it's helped us in terms of getting more members of a family using data."

The special $10 monthly plan was an offer that was supposed to disappear at the end of January 2011. However, Mead said the promotion is being evaluated and thanks to the success, it may lead to a more permanent plan. He said, "We're considering every option."

Verizon and all of the other carriers are keen to find ways to get more users on their higher margin data plans now that most people have mobile phones. Data use is a key profit center for carriers and Verizon expects its LTE data plans with much faster speeds to bring in more customers.

Mead added, "We're coming into an important phase of growth. I think we're going to see customer growth. We're going to see customer engagement in different ways."

 



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Verizon is full of crap...
By smackababy on 1/7/2011 2:51:57 PM , Rating: 2
I was at a conference where the Verizon VP spoke about the reasoning behind tiered data plan and I had to try my hardest not to walk out. The guy seriously stated that in order for there to be enough bandwidth for the world, they have to charge the heavy users more while increasing speeds. His number were amazing as well: "a dvd quality movie being downloaded is around 4gb in size"... He has obviously never heard of encoding because dvd quality (400p) are nowhere near that size. I've seen studies that 98% of broadband users (not mobile users) use less than 2gb a month.

I will never buy a Verizon phone, product, or service until they stop this b.s. they want to spew. I can't wait until everyone has 500mbps internet speeds and they reach their cap the first day and are charged thousands of dollars for more the second. This entire plan will be shown for the garbage, money grubbing, greedy crap that it is.




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