Home  ›  Carriers  ›

Verizon

Info & Phones News Forum  

all discussions

show all 28 replies

Verizon Tiered Data Pricing Is a Mistake: 10 Reasons Why

andy2373

Jul 6, 2011, 11:22 PM
I especially like #2 & #6. 😲


By eliminating unlimited data for its mobile customers, Verizon is putting itself in a difficult position. The fact is, unlimited data isn’t good for anyone, including customers, smartphone makers, or carriers. Prior to its decision, Verizon held the high ground on data plans. Now, the company is down at the bottom of the heap with AT&T.

Verizon committed a major blunder by bringing tiered data to its business, and over time, it will realize why.

Read on to find out why tiered data pricing is bad for all stakeholders and could eventually come back to haunt Verizon Wireless:

1. More smartphones mean more data use

If there is anything that can be guaranteed in the coming years i
...
(continues)
...
pickles

Jul 6, 2011, 11:29 PM
great article, thanks man
...
Azeron

Jul 7, 2011, 12:45 AM
"Now, the company is down at the bottom of the heap with AT&T."

Yeah. Those two middling companies are really suffering with their puny market share.

"1. More smartphones mean more data use"

Hmmmm...so now when a person on a 2GB plan or a 5GB plan exceeds their allotted data allowance Verizon stands to actually make a few dollars out of the deal.


"2. It could have been an advantage for Verizon"

Instead they and AT&T continue to look like twins separated at birth. No great loss for them.

"3. Why isn’t Verizon thinking about AT&T’s merger?"

This one was just filler material, wasn't it.


"4. It’s expensive"

Yes it is. Those *Bleep*ards are licking their lips with eager anticipation of all the mo...
(continues)
...
joey301

Jul 7, 2011, 6:39 AM
I agree with everything you said. We can only hope that some real ISP comes along to challenge Verizon, or the government decides to regulate ISP prices.
...
Azeron

Jul 7, 2011, 4:55 PM
Well hell as long as I am hoping, wishing and dreaming...winning the Power ball Jackpot is more likely than the Feds doing anything to help me out. They only bail out those who put money in their pockets.
...
joey301

Jul 7, 2011, 7:36 PM
you have a point.
...
CellStudent

Jul 9, 2011, 12:09 AM
joey301 said:
I agree with everything you said. We can only hope that some real ISP comes along to challenge Verizon, or the government decides to regulate ISP prices.

You think $10 a GB is an extravagant charge? It's not. Delivering data service over a cellular network costs between 25x and 75x as much as transferring the exact same amount of data over a DSL or cable modem.

The only way to keep the cellular networks from being over run in the short term is WiFi offloading and femtocells. Tiered data drives usage of the cheaper short-range wireless services, which leaves more cellular capacity available for the people riding in the busses and trains that can't reasonably use WiFi.

I abso...
(continues)
...
joey301

Jul 9, 2011, 8:49 AM
I don't know how much it costs Verizon to offer these services, and I am not sure whose report I would even believe, maybe if I saw it on factcheck.org. However, I don't think they are charging us so little that it hurts, especially considering I am already paying them for a home phone, television, and Internet. I am like you though, I use WiFi whenever I can.
...
OrionsVantage

Jul 9, 2011, 8:50 AM
Verizon wireless and Verizon communications are not the same company.
...
Azeron

Jul 10, 2011, 5:45 PM
I LOVE the way Verizon has implemented tiered data. When we debated this you argued so convincingly the merits of tiered data and how fair it would be. While I failed to convince anyone that Verizon would tie their wrists to their ankles and have its (VZW) way with them.
...
techie2001

Jul 12, 2011, 4:02 PM
Don't despair CellStudent. I too was quite annoyed when I found out that the minimum plan will have no impact on my bottom line... but then I got to thinking...

Does this open up the door to shared data? In addition to promising tiered data, there have been mentions out there of shared data on accounts.

If I can buy up $30 for 2GB to share across both of my smartphones, my bill effectively drops 50% for data services. That'd make me a pretty happy camper.

Hopefully they won't decide to make the "shared" plans different rates and tiers, or offer even more options.
...
Azeron

Jul 13, 2011, 8:53 AM
You are an eternal optimist. Why would Verizon give you a chance to save money when you are perfectly content to pay for two data plans now?
...
CellStudent

Jul 14, 2011, 5:01 PM
Azeron said:
You are an eternal optimist. Why would Verizon give you a chance to save money when you are perfectly content to pay for two data plans now?

Yep...

Here's hoping T-mobile doesn't get gobbled up by AT&T so they can continue to be a competitive force driving down the cost of service. Economics is the only way this is going to improve now.
...
Azeron

Jul 14, 2011, 6:43 PM
...we're all doomed. AT&T has already provided hookers and bribes to all the politicians on BOTH sides to ensure their cooperation on this thing. Besides, even if the merger were denied, Verizon and AT&T generally ignore what Sprint and T-Mobile do unless they see an opportunity to put more money in their own coffers (as when Sprint raised the PPU rate for text messaging).
...
Lord Azrael

Jul 14, 2011, 9:49 PM
I think all carriers do this. If AT&T and VZW had not moved towards tiered data, I'm not sure Sprint could've justified their $10 premium data add-on.

Free market indeed...
...
Azeron

Jul 7, 2011, 7:24 AM
We love Sprint because they are the underdog. Never forget that the little guy down deep in his heart secretly wants to be the man. When Deutche Telekom batted its eyes making the world aware that T-Mobile could be had for a price Sprint was first in line with candy, flowers and a condom in the back pocket.

Understand this: At the same time that Sprint touts its unlimited data plan, there will be accountants in Hesse's ears showing him the revenues they could have made were their data plans tiered rather than unlimited. How long will Sprint hold out?
...
pickles

Jul 7, 2011, 3:54 PM
Great post, excellent point. If only the gentle readers of PhoneScoop listened to common sense...
...
andy2373

Jul 7, 2011, 5:57 PM
I think they've already made the money from the $10/month premium add on.
...
Azeron

Jul 7, 2011, 8:51 PM
So you believe a company can actually make enough money? Can YOU?
...
pickles

Jul 7, 2011, 10:42 PM
supposedly, they had to give most of the revenue from the $10 add-on to clearwire
...
andy2373

Jul 8, 2011, 6:18 AM
pickles said:
supposedly, they had to give most of the revenue from the $10 add-on to clearwire

If that's true OUCH!
...
pickles

Jul 9, 2011, 4:38 PM
that was sprint's excuse, after clear took them to court...clear alledged that sprint wasn't giving them the agreed upon sums for use of clearwires network for WiMax (iirc)
...
mobilemadness

Jul 8, 2011, 2:14 AM
You answered why Verizon is doing this. Answer, because they can. All your reasons for not doing it in the consumer's eye are all the reasons they will do it. The rise in demand of data means they have consumers by the balls and most will gladly pay the higher price. They don't want to set themselves apart from ATT being competitive. They would rather not compete and be complacent and accept they are no different than the competition. I guess they don't teach about free market competition for business majors anymore. It's easier to have two duopoly's that are like clones of each other rather than to actually compete.
...
Azeron

Jul 8, 2011, 3:07 AM
...that are like clones of each other rather than to actually compete."

Competing is expensive. Ever notice cable companies don't compete against one another? Instead they divide up cities and charge consumers whatever they wish. This is what mobsters do. This is what gangs should do if they had any sense. Why expend resources tearing one another down when one can agree to share territory and operate side by side? This is what Verizon and AT&T are doing and what they SHOULD be doing. They have no natural enemies. They can each sit there making billions and there is nothing anyone can do about it. The Feds won't stop them as long as these two keep contributing dollars to members of each political party.
...
Fredd

Jul 8, 2011, 10:52 AM
Two duopoly's? Wouldn't that be 4 companies?
...
Azeron

Jul 8, 2011, 3:53 PM
True. I did not feel the need to correct the guy as I understood what he meant to say. If I felt the need to mark up his work with a red pen I would also have pointed out that the plural of duopoly would not be spelled "duopoly's". I just did not find it to be a big deal nor an impediment to communication.
...
mobilemadness

Jul 10, 2011, 11:17 AM
Thanks for seeing past the grammatical errors and getting to what I was trying to say. And what you replied was totally correct. It is a lot easier to have two companies agree to not actually compete against each other and, instead, actually work together to reap billions of dollars from customers.
...
Azeron

Jul 10, 2011, 5:37 PM
Hell I would do it if I were AT&T or Verizon. Sure I detest THEM for doing it because it benefits THEM and not ME. But if the shoe were on the other foot I am certain that Azeron Wireless would practice the same anti-competitive practices that Evil Red and the Death Star do and of course pad the pockets and feed the appetites of the politicians necessary to get it done.
...
OrionsVantage

Jul 9, 2011, 6:17 AM
Any article that starts out with "unlimited data plans are not good for anybody" then proceeds to bash a company for getting rid of unlimited data should be questioned.

Althe rest of the article is just as contradictory.
...

You must log in to reply.

Please log in to report a message to the moderator.


all discussions

Subscribe to Phone Scoop News with RSS Follow @phonescoop on Twitter Phone Scoop on Facebook Subscribe to Phone Scoop on YouTube Follow on Instagram

 

All content Copyright 2001-2020 Phone Factor, LLC. All Rights Reserved.
Content on this site may not be copied or republished without formal permission.