Kae Zulager

Well, PC Magazine has recently released their results on data speeds and found that Verizon is the fastest network in the US. Here are the results: [Read more…] about AT&T vs. Verizon Data Speeds

So long and farewell to the Verizon unlimited data plans

We all knew it was coming. Verizon CEO Fran Sammo reported new Verizon tiered data plans are coming July 7th.

Here is what we understand to be the latest:

• $30 for 2GB data plan (equals 2, 048 MB) with a cost per MB of $.0146
• $50 for 5GB data plan (equals 5,120 MB) with a cost per MB of $.0097
• $80 for a 10GB plan (equals 10,240 MB) with a cost per MB of $.0078

(Thus if you are a heavy user, the cost per MB is significantly less with the $80 10GB plan; however, not many users are at this level of usage today and it is a higher raw dollar number than the 2GB which is where many users reside today.

• Tethering is reported to be an extra $20 which gives another 2GB.
• 3G and 4G plans are the same pricing.
• Those currently under contract are not affected at this time, but we all know how that works too. HANG ON to those UNLIMITED grandfathered data plans!
• Speaking at the Reuters Global Technology Summit, Verizon CFO Fran Shammo suggested Verizon might eventually offer data pooling on its Family plans. Just as carriers have sold business customers large pools of voice minutes that a number of employee devices can dip into, members of a family could sip from a shared data source. “At some point, you are going to have mega-plans [for data], and people are going to share that mega-plan based on the number of devices within their family,” Shammo said at the Summit, according to a May 21 report from PC World.

Below is Verizon’s internal document reporting the data pricing changes [including our own Bill Police version of subliminal man on the job:

Data Pricing Evolution…The Present

Our legacy data pricing structure was designed to address a somewhat different customer need profile than what we are seeing and can expect in the future.we are leaving money on the table and we have to change that!]

Consider this. Data usage has more than doubled over the last three years. [opportunities for more dollars] Consumers and business users alike are doing more and more with their mobile devices. The notion of “send and end” has migrated to “managing multiple aspects of one’s lifestyle through mobility.” Whether it’s social media (85%+ of Smartphone users), [yum, data!] mobile internet (88%+ of Smartphone users), [yum more, more data!] or email/applications (71%+ of Smartphone users) [cha-ching!], this usage has one thing in common-dramatically increased demand for data and media consumption [the mother load].

As a result, we are evolving our approach around how we package our data solutions and pricing to our customers [now that we have the users really hook on data it easier to raise our prices to enable/improve/grow our bandwidth]. Coming soon, Verizon Wireless will move from our existing pricing format to a structure designed to allow customers to choose the right data solution that best aligns with their needs [with significant expensive limits].

The Value Benefit Equation…

With the new usage based pricing plans, the vast majority of our customers will be able to enjoy [!] their typical level of data consumption for the same value that they outlay today. Additionally, for those who have greater requirements for data, we will have solutions that they can tailor to their unique needs.[again, any color as long as its black]

Perhaps more importantly, given our strong desire to continue to provide enhanced capability and value to our customers, the new data pricing will apply to both our 3G AND 4G LTE networks. So in essence, for those customers in our ever and rapidly expanding 4G LTE network coverage footprint, users will gain the benefit of the fastest and most advanced 4G LTE network in the U.S. all for the same usage based value. More speed. More functionality. Same value. [for now…ask me again in 6 months].