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June 21, 2011

Verizon Wireless to Drop Unlimited Data Plans

By Michelle Amodio, TMCnet Contributor



For prospective Verizon (News - Alert) Wireless customers: better sign up soon. If you’re weary of your tiered data plan and have been wanting to head on over to Big Red for unlimited data, your chance will be over in two weeks.

Starting sometime in July, there will be three levels of tiered data plans that new customers can pick from. Before anyone thinks they’re a data hog, there is peace of mind in knowing that 97 percent of customers are not, in fact, overusing their data by much, if at all.

The fact that may be hard to swallow is the pricing. Currently, Verizon charges $30 for unlimited data but, once unlimited is gone, customers can expect to pay the same price for 2GB a month. 5GB will run you $50, 10GB $80 and anything over will run $10 per GB. The closest one could get to unlimited would be the hefty 10GB plan and, even then, it will cost three times as much.

When new plans arrive, Verizon typically grandfathers in the current subscribers, allowing them to keep their current plan and pricing until they make a plan change that removes the old plan. This means if you have an unlimited plan now, you should be able to keep it when you switch to a new phone.

It should come as no surprise to customers that carriers are making the move to tiered data plan offerings. Since unlimited minute plans can be rather costly, using data and texts to communicate became the primary method for many to communicate. As a result, there has been slight decline in the price of calling plans and a move away from unlimited data. By placing data caps each month and charging more for each greater tier, carriers make more money and relieve some of the pressure from their network.

By comparison, Verizon Wireless’ (News - Alert) tiered data plans will be the most expensive and there are no smaller plan offerings, which might mean less new customers.

According to GottaBeMobile, Verizon will introduce “Family Data Plan”s this summer which will take some of the sting out of having four family members with smartphones. Verizon hasn’t announced any plans yet, but it is rumored that these family data plans will also be tiered and will force users to abandon their unlimited plans to get onto a shared family data plan.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Michelle Amodio is a TMCnet contributor. She has helped promote companies and groups in all industries, from technology to banking to professional roller derby. She holds a bachelor's degree in Writing from Endicott College and currently works in marketing, journalism, and public relations as a freelancer.

Edited by Jennifer Russell
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