Verizon tiered pricing looks to be 4G only
Posted by Celeste | Posted in Web News | Posted on The Flip Cam Store
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There are several reports today that Verizon is considering ditching unlimited data plans. This appears to be slightly misleading, with the changes only affecting future 4G services.
The reports stem from a Bloomberg interview with Verizon’s financial chief John Killian. He’s quoted as saying “We will probably need to change the design of our pricing where it will not be totally unlimited, flat rate.”
However, the comments come in the context of Verizon’s move to 4G networks and the associated increase in demand, particularly for video downloading. PC World notes a Verizon spokeswoman saying there are “no current plans” to change the 3G plans, and points to previous comments by the company that it always planned different pricing strategies for 3G and 4G.
Of course, the issue of 3G download limits is in the forefront given AT&T’s recent decision to ditch unlimited download deals. Given their respective pricing history, you might expect Verizon to follow in AT&T’s footsteps, figuring it’s unlikely to lose any customers in doing do.
Still, another way of looking at the situation is that Verizon may as well use “unlimited” packages (or at least, subject only to high “fair use” limits) as a selling point if and when it gets the iPhone. Combine that with AT&T’s rep for patchy coverage in big cities and Verizon could pick up a lot of iPhone customers.
Such a move wouldn’t necessarily prove that costly. In the Bloomberg interview, Killian says Verizon smartphone customers average around 600 to 800 megabytes of data each month. That means that the promise of “unlimited” data likely wouldn’t cost Verizon much in practice, and probably not enough to outweigh the benefits of what looks on paper to be better value.
Killian didn’t have any updates on the timeline for Verizon’s 4G networks. Most estimates put the wireless service as being available later this year, with phones going on sale next summer.
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