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Verizon Wireless: Unlimited Data Not 'Sustainable'

Article Comments  100+  

Jan 13, 2010, 3:56 PM   by Eric M. Zeman   @phonescooper

In an interview with the Washington Post, Verizon Wireless chief technology officer Dick Lynch said that metered plans are likely to be put in place eventually. He explained, "The problem we have today with flat-based usage is that you are trying to encourage customers to be efficient in use and applications but you are getting some people who are bandwidth hogs using gigabytes a month and they are paying something like megabytes a month. That isn’t long-term sustainable. Why should customers using an average amount of bandwidth be subsidizing bandwidth hogs?" Lynch indicated to the Post that it will probably charge a general data access fee once its Long Term Evolution network is up and running, and then take advantage of a usage-based model to calculate monthly bills.

more info at Washington Post »

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Comments

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This forum is closed.

Cleindian44

Jan 15, 2010, 11:19 AM

Could this signal the impending arrival of the iPhone for VZ...

and they are trying to keep what's happening with AT&T from happening to them?

With VZ's customer base and their woody for this phone, clogging of even their vaunted system would happen with the current $30 unlimited data plan. Getting rid of the plan (or at least pricing it so that it would be unattractive or unaffordable to most) would certainly curtail data usage.
Just might, and let me say this, if VZW gets a CDMA iPhone, and I'm sure it will given time, the week they have it, maybe more before or after, you will see the salesforce in their corporate stores wearing Apple/VZW polo shirts. I also predict like 1...
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I don't see how it possibly could be a sign. Apple wants people to be able to access content, and lots of it. Iphone users are notorious for being heavy data users, and Apple wants that, that's how they sell their services. The Iphone was made popular...
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techdiva44

Jan 14, 2010, 12:53 PM

THIS IS MADNESS

Ok I am fine with capitolism and the like but come on Verizon. Stop Whining...and acting like you can not afford to operate. Cant handle the unlimited data, then SUCK IT UP and fix your netwrok and technology. Stop trying to make up excuses to raise rates, my goodness.
All these posts with "options" and metered plans...not gonna happen the cost of ownership is too high already in most households.
This is a major contract and service change I would totally cancel my service with them if they tried this mess....
Unlimited data means unlimited, if you cant handle it then move over for a company that can....
I bought my Droid for the network and the ability to use it as much as I want for 29.99 a month (my data plan) so K M A if I want to s...
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They are not changing anything on 3G. They are talking about 4G. Even if they were considering new 3G options those on existing plans would be grandfathered.
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techdiva44 said:
Ok I am fine with capitolism and the like but come on Verizon.

Unlimited data means unlimited, if you cant handle it then move over for a company that can....

I bought my Droid for the network and the abili
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They are saying that in the Future, it will be impossible to handle truly unlimited plans profitably. They are saying NOTHING about current 3g phones.


Seriously, reading a post before commenting helps you understand things,
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Here in the US its important to have absolutely no protection for the consumer. because we are not socialissts. Socialists are evil. We MUST protect our way of life!
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ChipDaFone

Jan 15, 2010, 3:51 AM

they can't afford to give it away

on the 18th they drop the connect, and premium plans. so now if you want unlimited data its $29.99 per line!
snowbdr89

Jan 13, 2010, 8:28 PM

another way for the 4th reich to charge more for less!!

im glad i broke free of the 4th reich Very Happy
So who are you with now?
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VZW_insider

Jan 13, 2010, 9:12 PM

Some Food for Though... Be Gentle

So I finally have finished reading every post on this topic (at least for the next 30 seconds). A lot of people have jumped on the "Verizon is greedy, evil, killed my son, raped my daughter, etc, etc" bandwagon. So a few things to consider about, not Verizon Wireless, not AT&T, no Sprint, but the industry as a whole.

1.) Smartphones - People love their smartphones. How much? Enough to pay $30/month for them. If you saw no value in this, you wouldn't have purchased one, because I am assuming that a majority of people on this forum are sensible individuals who are fairly tech savy. But consider a couple things, which I have seen from personal experience. Blackberry users tend to use between 500mb-1GB of data transfer per month. IPhone and A...
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You are a very, very good blogger!
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VZW_insider said:
wh\

5.) New Devices - Think it's absolutely absurd that the Samsung Rogue or LG ENV Touch require a minimum $9.99 data package? Why do you need either of those devices over a Samsung Intensity (which has full
...
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art23ncsu

Jan 13, 2010, 6:16 PM

New Verizon plans Sunday 1/17

We have conference calls Thursday and Friday detailing the new Verizon plans that are coming out this Sunday. Everything is hush hush so I dont have any details.

When I see this article, I just HAVE to wonder if it is any foreshawdowing into whats about to hit Sunday. I love Verizon and we are the overall number one Cellular company, but I have always had a major distaste for forcing people to get a data package like they did with the Env Touch and Samsung Rogue for at least $10 a month. Now they are going to force it on phones that dont even have a full web browser like the Env3, Moto Rival etc., Its bullcrap. If my customers dont want web, I block it. The whole forcing is rediculous.

The plans/changes coming out are supposed to...
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AT&T and T-Mobile matched Unlimited the same day and Sprint launched Simply Everything the next week. Someone always leaks the info. Let me check BGR...
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Ok..heres the best part of the changes taking effect Monday. Unlimited Minute plans go from 99.99 to 69.99. You can get 2 lines unlimited on a 'share' plan for $119.99. You can add a 3rd 4th and 5th Unlimited Share line for $49.99 after that. Pret...
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Murphy

Jan 14, 2010, 3:32 PM

im thinking about taking bets

how high will the churn go after the 18th when almost all phones require either a connect plan or the 29.99 data plan. then on top of that they charge people that use 1gb even more


any takers
No more Connect or Premium plans.
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Azeron

Jan 13, 2010, 4:36 PM

I Want No Part of This

I'll be holding on to my 3G phones until I can move to a Wi-Max area, I guess.
Clear/Sprint needs to move faster on deployment, I have a sprint data card, off contract and the first company that gets 4g be it wimax or lte down to me at the Jersey Shore is getting my business.
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sprint has no $$$ to truly and effectively build out wimax, so they hope they can "hotspot" all the WalMarts in the U.S.
Data charges are here to stay and they will be capped in some way.Cable providers have even toyed with the idea of curbing the a...
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adilus

Jan 13, 2010, 4:51 PM

I agree completely.

Why should I have to pay $30-50 for data when I only use 100-200 MB per month but some bozo tethers their laptop and torrents to death.

Pay for use is the best way.
One option that I see that may placate all involved is to have a 3 or 4 tier pricing system. One would get a text alert when you have reached 85-90% of each tier limit within your monthly cycle. In this way you will be alerted that this month's data...
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The problem is that you will not end up paying any less then what you pay now. Say you had a smartphone and paid the 30 dollar data charge, the way the carriers will implement usage based pricing is that instead of paying $30 for 5GB or unlimited sma...
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evrodude

Jan 14, 2010, 9:54 AM

Who cares? Just change the billing structure for data service.

Seriously. Just set up a tier system and let the subscribers pick. Just like the billing structure for voice is based on minute blocks. Do the same for data, in megabytes and gigabytes.
We live in a world of high speed and multimedia, mb's of data is worthless, gb's are the new mb's!
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Slammer

Jan 13, 2010, 6:42 PM

WiMax is completely committed to unlimited...

They continuously have made mention of it. Things can change however.
But I do believe that they will stay the course with their goal. I personally will be signing on to WiMax as soon as it hits my market area. I have spent a good amount of time supporting this 4G variant and I will continue to support it's competitve edge.
Me too. Whenever someone bashes Sprint for going the Wi-Max path I defend them because it is another option for consumers. Now with Dick (appropriate name) coming with this BS I am even more in Sprint's/Clear's corner. I know I will never get it in...
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Jayshmay

Jan 13, 2010, 4:23 PM

WiMAX is unlimited!

If WiMAX can be unlimited then why can't LTE?!!!?
Which is why we as consumers need Wi-Max to succeed.
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Yea-Buddy!
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Why are they making the WiMAX offerings unlimited? Wouldn't they end up running into the same so-called bandwidth problems as LTE? Is WiMAX designed so differently that bandwidth not an issue?
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agostinod

Jan 14, 2010, 7:31 AM

Well I was going to switch...

Now with this potential news I will probably think very very hard. I have ATT but would prefer better service but not looking for a unnecessarily high bill.

Couldn't you just avoid using the internet on your phone by blocking the web and avoiding metered charges? Also, doesn't this break the existing contract that people currently have with Verizon allowing them to leave without a penalty?
info411

Jan 13, 2010, 6:19 PM

Comes down to greed.

They can offer UNLIMITED usage, they are using the few 1% of the bandwith hogs to push their agenda..

Good VZW don't control AIR supply, it would be freaky.. ie. because u smoke and breathe more you have to pay more for o2, than others cause they don't smoke. U can only breathe 2 out 3 times..

* Sounds ridicoulous right? Well that is my feelings with this data crap.
that 1% data hogs could be controlling 20-40% of the available bandwidth (meaning everyone else is paying more per month to subsidize those heavier users)
...
I keep saying what's the point in building a high speed network that a customer CAN'T consume multimedia on! ! !

Greed is the answer to everything like why flat panels cost frinkin $2,500-$3,500 for the bigger ones, frinkin outrageous! ! !
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You have to check your facts there, AT&T ran into this problem with iphone users, 5% of AT%T users were using close to 40% of the networks data. My sister has a iphone and she runs Youtube All day and she racks up around 40 gigs a month in data usage....
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hrpuffnstuff

Jan 13, 2010, 9:01 PM

Not greed at all, it's capitalism

I don't need a cellphone and data package but I choose to have it. I was never forced to sign a contract, I knew what I was signing . If it gets too expensive I will switch to a prepay phone.

My point, stop complaining as this is a private company who puts lots into their network. You are not entitled to use their network, it is a priviledge and they can charge whatever they want, that is called Capitalism. We have choices and we can make them.

Disclosure: I am a Tmobile customer who accepts to take part in a capitalistic society where I vote with my dollar.
Capitalism and greed are synonymous. Seriously why are you in denial? There is nothing wrong with it. *Shrug*
Fine, the contract is both ways, change the terms of service on the data plan, I cancel and sell my phone on Ebay, be it a droid, iphone or N1. And no ETF.
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The desire for profit is the desire to make something out of nothing, not an even exchange.
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AT&T does this and all hell breaks out.

Verizon does this and it's just greedy capitalism that the states are founded on.

Not that I disagree with you, because it is just greedy capitalism and all we can really do is complain / switch companie...
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KMFS1

Jan 13, 2010, 5:46 PM

JUST KICK OFF THE DATA HOGS

Kick off the people that are leaching off the system and driving end costs higher.
KMFS1 said:
Kick off the people that are leaching off the system and driving end costs higher.


No profit it that. Better to come up with some scheme to give less, charge more.
It woud never work - it makes sense!

Plus, how would they continue to fleece the masses? Make everybody pay for the misdeeds of a few!
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bluecoyote

Jan 13, 2010, 5:51 PM

For all of you AT&T Haters.....

AT&T: "We need to incentivize people to use our 3G Network Less"

Translation: Let's build out more WiFi networks for our users.


Verizon Wireless: "Or just charge them more."'


You can hate on AT&T for underestimating iPhone usage, but I don't buy this "AT&T is evil incompetent greedy EFF YOU ATT" mentality.

You want to know how VZW didn't end up with the iPhone? Because they were too busy trying to monetize that VCast crap and the joke of a mobile web they cram down their customer's throats.
AT&T and VZW are both greedy. I'm not sure what is wrong with that. If I were a share holder I certainly would not want satisfied persons running my corporation. This Dick guy is testing the waters to see what the reaction will be to this idea. I ...
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ATT first talked about tiering data plans, then they backed off.

They didn't get the iphone because:
1. GSM iphone allowed for easier transition to global markets
2. They would not allow verizon to offer support/insurance on the device (bad for...
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mist668

Jan 13, 2010, 4:28 PM

You all freaked

When AT&T said this but it is ok when Verizon announces the same thing?

Charge me less and I'll use less, charge me more and I'll use more. Which only makes sense for the current billing system. Got to use up that $30 monthly charge.
Agreed, there is a lot of AT&T hate on these boards a lot of the time.

I use (and love) my iPhone. What I think people get mad about is AT&T bringing this stuff up after the problem arrises. IMO Verizon (being able to use the 20/20 hindsight of w...
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ATT was talking about current plans, aka iphone users.

Verizon is talking about 4g
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mist668 said:
When AT&T said this but it is ok when Verizon announces the same thing?

Charge me less and I'll use less, charge me more and I'll use more. Which only makes sense for the current billing system. Got to use up t
...
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Kagehiru

Jan 13, 2010, 4:51 PM

This argument is old and tired.

This isn't the first time he has banged this particular drum. This line has been used time and again to justify rate changes/increases to "better charge the customers actually using data." What you don't see, however, is a corresponding decrease in data charges for customers not using as much data. Whether you examine the food industry, the cable industry, telephony or cellular, you don't see decreased rates for low use customers. The all you can eat model of the many customers supporting the few has worked in the past and continues to work for now and in the future. What Verizon and AT&T are facing isn't an unsustainable business model, but a decrease in profit margins as they use the revenue from data to actually upgrade the data capa...
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Well said.
I completely agree and I also stated the point of low usage customers not paying any less then what they do now in another post.
also, considering they are going to try and make the networks 1,000 times more efficient, there really seems to be no reason to charge so much and even worry about people hogging the network. i guess now it might seem reasonable. but Kagehiru did say ...
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Voice gains them next to no profit, and it will be a wash within a few years.

That being said, if rumors are true, per usage (overage) data will drop to .20MB on non-smartphones.
island-guy

Jan 13, 2010, 7:58 PM

Good corporate maneuvering....harsh reality for all of us

Face it folks. Big red is slated to be 'The' wireless carrier once their LTE fully deploys. They will most likely get an Iphone sooner than later and already have capable smart phones in their lineup. They already tout having a network capable of handling what At&t apparently cannot. Having picked up on everything At&t fell flat on, it looks like they are just making sure they don't make the same mistake twice. As far as hogging bandwidth goes, it should be as simple as the electric company. You use more you pay more, use less you pay less.
Well...whatever. Data is not a necessity in my life. It is convenient, but I am more than willing to dump my XV6900 with tethering and go to DSL and be fixed. It works for me right now though and as long as I can keep my existing plan. I am good. ...
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