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Verizon to sell iPads with MiFis

epik

Oct 14, 2010, 4:43 PM
Today, Verizon announced it would be selling iPads (WiFi versions), either with or without MiFis for mobile Internet access.

The plans:

1GB/mo for $20/mo
3GB/mo for $35/mo
5GB/mo for $50/mo

I think I'd much rather these plans than the ones on regular aircards and MiFis. I know I'd save money.

Also, I wonder if this is a precursor to data buckets.

https://www.phonescoop.com/news/item.php?n=6803 »

http://www.phonecan.com/blog1.php/breaking-verizon-w ... »

http://www.boygeniusreport.com/2010/10/14/verizon-wi ... »

http://news.vzw.com/news/2010/10/pr2010-10-14.html »
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cwcanty

Oct 14, 2010, 4:50 PM
I still think we are being charged too much for mobile data. It should be the same as smartphone data. Data is data, you shouldnt need this many buckets and options.

These are all trying to maintain their ARPU in a world it should actually be cheaper to use a cell phone in the next few years when almost all we do will be run over the data network and wifi.

Good to see the apple and verizon partnership tho, may be a sign of things to come.
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epik

Oct 14, 2010, 4:56 PM
I don't disagree with you, but I fear smartphone data will be realigned in a similar way.

While the market is driven by consumer trends, the carriers do a decent job of protecting the bottom line.

I think the ultimate solution is far broader than just smartphone or aircard data - a top to bottom, fundamental change (this is where I could insert the term "paradigm shift") in the way carriers do business. It will take the end of subsidies and cost models as we know it.
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cwcanty

Oct 14, 2010, 5:00 PM
I would be fine with the end of subsidies, if the plans were lowered. I just wish they would lower monthly plan rates if you purchase your own phone.

There are a lot of potential changes that could be made, but as it stands now, these american cell companies have waaaaaay too much power and control.

Chris
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Menno

Oct 14, 2010, 5:13 PM
They do, but that control gives us some perks that others don't have.

IN the EU plans don't include things like mobile to mobile, landlines are billed per minute no matter what the plan, "unlimited text" caps at 1k SMS and MMS is charged per use.

US companies still have far too much control, no doubt. But I'd rather start from this postition and open up instead of having a plan like the ones in the EU
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Menno

Oct 14, 2010, 5:00 PM
Once data is no longer unlimited, you'll most likely see smartphones and aircards get similar rates for data.

Sadly, this will mean a change from $30 for unlimited for aircards to something akin to the buckets you see on the mifi now.

That being said, it could also open up the concept of "Bucket" data, as in I buy 15GB of data for my account, that I can use on any of my devices, in any way I want to use it.
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cwcanty

Oct 14, 2010, 5:03 PM
I like the idea of the "big bucket" approach for multiple devices or family plans.

I just know the consumer is gonna end up getting screwed over the next few years as cell companies try to squeeze every last dime out of us.
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Menno

Oct 14, 2010, 5:11 PM
Oh I agree... but at the same time, Verizon's plans with this bundle are actually kinda reasonable... it works out to be $10 a month cheaper than the contract price plan @5gb

I don't doubt that plans will suck until everything works itself now, but remember up until this announcement, 5gb of data on a stick prepaid was $80
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epik

Oct 14, 2010, 5:53 PM
When I started in the business, the cheapest aircard plan was $79.99. Before that, the plans were much higher for megabyte allotments. Things have come a long way. Things will continue to change. At least we're not going backwards.
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Azeron

Oct 14, 2010, 8:30 PM
I would sometimes see customers on $79.99 Unlimited rate plans. Apparently, they preferred to pay the extra $20 rather than deal with a hard cap. I know, I know! They COULD have changed to $59.99 Unlimited plan when it was available. These were business accounts so apparently either their account executive didn't want to lose the $20 or they did not have one.
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epik

Oct 14, 2010, 11:25 PM
I saw one of them about five months ago. The guy's been keeping it because it was unlimited. And he definitely needed it, too, since he uses at least 10 gigs a month.
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Azeron

Oct 14, 2010, 8:25 PM
*Bleep*! In that case, it will simply be business as usual. We ARE paying for SMS and MMS when these cost the carriers NOTHING. We ARE paying for minutes (especially $.40 and $.45 overage rates for customers to dumb to just get an Unlimited plan but bust their 450 and 900 minutes to hell) when these cost the carriers pennies. I don't blame businesses for being evil, greedy *Bleep*ards. I don't like it...I simply expect it.
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epik

Oct 14, 2010, 11:43 PM
It costs them something. I think you mean "next to nothing." Pennies, even.

The problem with price plans isn't the cost of running service, it's the cost of running business, from the windex in my store to the fiber optic running the backbone.

I totally agree on overage fees. It bothers me that parts of the company (and other companies) see overages as potential income. Overages shouldn't be punitive in this day and age, where the cost of a minute is minuscule.

In the early days, when costs were higher, customers were fewer, and phones were used less often, overage rates made more sense. Today, they don't.
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Azeron

Oct 15, 2010, 12:35 PM
No. I meant what I said. Nothing. Just having a wireless network up and running pays for this. And charging more for MMS than SMS? Maybe not criminal but close. Providing calls DO cost a penny or two as I stated, but people should be responsible for making their own decisions. One should not expect the government to coddle them and the damned government certainly has no business forcing the carriers to do so.
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epik

Oct 15, 2010, 3:55 PM
And my point was that the mere transmission of a message as a packet of data is not the only cost to the company.

When I started my own company, I was setting up a cost model for my service. I repaired computer and networking systems for businesses. I charged $60 an hour, the base rate at the time.

Months later, I realized I was actually making a lot less than that when I figured in the cost of my office, power, phones, employees, gasoline, parts, tools, and so much more. And I didn't have my own building or storage facilities, company vehicles, benefits, infrastructure, and more.

Carriers are big companies with big costs. If they charged you a simple rate based on the cost of transmitting a packet of 160 text characters rathe...
(continues)
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Azeron

Oct 15, 2010, 10:32 PM
http://gthing.net/the-true-price-of-sms-messages »

I know the true cost of SMS messages!

I made a paper for the univeristy some years ago. The marginal cost of a SMS is 0.

They do have a little cost/opportunity. As a matter of fact SMS messages are sent on the control channel. Initially SMS were implemented in the GSM standard as a control system, just like the ICMP protocol of the IP stack. Then NOKIA though to implement a actual instant message function using SMS. The Contol channel is the channel that your mobile listens to in order to receive calls. So for receiving a SMS a control signal is sent. Since bandwidht is somehow limited on these channels it could happen that in a situation of massive usage of texting the control channe...
(continues)
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epik

Oct 16, 2010, 3:02 PM
An interesting read, and again, I'm not disagreeing with it. The issue I have with the statement is that it is measuring the cost of the actual transmission of an SMS or MMS, not the cost of doing business. Anyone in business knows that the bottom line will include ALL of your costs in relation to ALL of your revenue, and if you don't price according to your bottom line you're leaving money on the table. Additionally, the wording used in the article you reproduced here is not specific.

As with my previous example, when I was in the computer repair and consultation business, I had to set my prices according to my bottom line. At first, I saw $60 an hour and thought I was raking in the cash. Then, I realized I had to pay for everything...
(continues)
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ZumiezEastCoast

Oct 16, 2010, 5:26 PM
don't you think it cost them money to use the towers for you to get the sms and calls??? they rent space from tower owners so yes it will cost them something for you to use the services.
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epik

Oct 16, 2010, 5:36 PM
Yes, a cost of doing business.
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CellStudent

Oct 14, 2010, 8:27 PM
epik said:
The plans:

1GB/mo for $20/mo
3GB/mo for $35/mo
5GB/mo for $50/mo

I thing the real question now is how or if they're going to prevent non-iPad customers from getting on those program tiers. What are they going to do, shut off your account if they see that 90% of your data usage is actually a tethered iTouch or laptop?

What I'm really hoping to see is that these published prices -$5 become the smartphone/handset data options. $15/$30/$45 sounds like a pretty simple pricing scheme to me.

I think that's a feasible future. $10/GB for heavy users is about right for a 3G network. LTE and WiMAX should start floating closer to $6 or $7 per GB.
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Azeron

Oct 14, 2010, 8:31 PM
*Groan*
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CellStudent

Oct 14, 2010, 11:14 PM
*that's what she said*
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ZumiezEastCoast

Oct 16, 2010, 5:29 PM
wouldn't it be a moan for her? from a groan i assume you weren't satisfactory :p
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Azeron

Oct 14, 2010, 8:37 PM
...could get away with calling a device an ipad.
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Amarantamin

Oct 14, 2010, 8:40 PM
Fixed!
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