wasnt 4g supposed to be cheaper than 3g?
I am just kind of curious, with everything I've read about 4g lte, isn't it supposed to be cheaper to operate in the long run for the network operators? Verizon is going to tiered prices soon, what do you think is a reasonable price scale? i think 5 dollars a gigabyte would be a reasonable tier, regardless of device (hotspot, phone, usb modem). Unlimited would be nice for $30 on 4g but thats not realistic from what Verizon has stated. whats your thought?
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Verizon execs have stated that they're unsure if they're going to go with tiered allotments, or speed ranges, for their cost model. So it's possible we could see all unlimited, with speed being the difference between pricing rates, or it could be GB buckets with full speeds for all. Or, maybe it would be both (which could get confusing).
LTE is cheaper to deploy and maintain than EVDO, so sticking with current pricing would yield better margins. But, tiered data buckets would give the feature phone demographic something to consider in the smartphone world, which could yield more revenue. And then, higher rates for the highest speeds would get a core group of "bigger and better" consumers who want as much as they can use at the fastest...
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LTE is cheaper to deploy and maintain than EVDO, so sticking with current pricing would yield better margins. But, tiered data buckets would give the feature phone demographic something to consider in the smartphone world, which could yield more revenue. And then, higher rates for the highest speeds would get a core group of "bigger and better" consumers who want as much as they can use at the fastest...
(continues)
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The sensible thing to do, in my mind, is to price all data plans based on "3G" efficiency and set the price such that a user in a 3G only area is just barely profitable in the long run.
That would keep data prices identical for 3G and 4g users, which is simple, and the real profit would come from customers who live in 4G areas where the cost of providing service is cheaper after the towers get built out.
It seems to me like this is pretty much what they've done with the new 3G hotspot and tablet pricing options. A large scale average of just about $10 per GB seems like a just-barely sustainable 3G model, so it would be an extremely lucrative 4G pricing model.
That would keep data prices identical for 3G and 4g users, which is simple, and the real profit would come from customers who live in 4G areas where the cost of providing service is cheaper after the towers get built out.
It seems to me like this is pretty much what they've done with the new 3G hotspot and tablet pricing options. A large scale average of just about $10 per GB seems like a just-barely sustainable 3G model, so it would be an extremely lucrative 4G pricing model.
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LTE will put a ton of money in the carriers' pockets. It won't save US any. If you thought $39.99 for 450 peak minutes was a rip off or $69.95 for unlimited talk...you ain't seen NOTHING yet. When I think of those customers who paid $299.99 for 6000 peak minutes for YEARS I feel so bad for them.
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I feel sorry for those people NEEDING 6000 mins on anything less than a 10 line plan.
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They were usually business people, truckers or police. This was before carriers were offering unlimited calling plans and believe it or not the 4000 peak minute plan did not work for these consumers.
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I actually think it will make calling plans really cheap (and texting) where they will make their money are data buckets.
All they need to do is convince mr and mrs jones to get their son an LTE device that he uses for next gen gaming, and they make a ton of money, even though their "listed" costs are all lower.
All they need to do is convince mr and mrs jones to get their son an LTE device that he uses for next gen gaming, and they make a ton of money, even though their "listed" costs are all lower.
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