MUST READ: Don’t let NSA paranoia destroy your productivity

Topic: Verizon

Leaked memos confirm Verizon's tiered data ambitions

Summary: An internal Verizon email sent to retailers breaks down the company's tiered data upcoming plans. So long, unlimited data.

Ricardo Bilton

By for The ToyBox |

In case you were not entirely convinced by previous reports on Verizon's intent to give unlimited data plans the axe, look no further than this latest bit of proof.

The documents, obtained by AndroidCentral, confirm much of the previous speculation, which, all told, seems to be pretty bad news for consumers. Here are some of the important bits, many of which have been reported previously:

  • The pricing: $30 for 2GB, $50 for 5GB, $80 for 10GB. Overages will cost you $10 per GB.
  • Customers already signed up for Verizon's $29.99 unlimited plan will be grand fathered in after the new changes are enforced. (But for how long?)
  • New Verizon customers that jump on board before July 7th will still have access to the unlimited plan. Anyone that signs up after will be out of luck.

With July 7th drawing near, this gives you two weeks to sign up with the current plans. Better get moving.

[AndroidCentral]

Topic: Verizon

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

28 comments
Log in or register to join the discussion

  • FIgures...

    I have about a month and a half after that deadline before I can upgrade and finally get my smartphone. Grrrrr.
    safesax2002
    Reply Vote

    • RE: Leaked memos confirm Verizon's tiered data ambitions

      @safesax2002

      If you are close to your date and want to upgrade, talk to a store. They waived the cancellation fee for me when I upgraded to a Droid. They also have periodic deals to get you on a smart phone.

      I'm not associated with Verizon other than as a customer. I'm just passing on my experience.
      sbf95070
      Reply Vote

    • RE: Leaked memos confirm Verizon's tiered data ambitions

      @safesax2002<br><br>I don't have Verizon, but I don't see why you wouldn't be able to add an unlimited plan to your phone now. Most companies will allow you to make changes to your data plans if you go into a store or call customer support. And judging by the handout above, you should be able to apply high data plans to a regular phone. <br> <br>Again, I don't have Verizon, but sbf95070 makes a good point, just give 'em a call. Might cost you $30 this month, but it'll be worth it in the long run.
      FausterChild
      Reply Vote

  • Switch to Cricket

    I've been using them since 2006. Unlimited everything. Love my Android based smart phone. For which I don't worry about data usage.
    ye
    Reply Vote

  • RE: Leaked memos confirm Verizon's tiered data ambitions

    Just like any good "dealer" or "pusher" they give you a little to try for a while and get you good and hooked, then, oh boy, sorry bout dat, yo, but you's gotta pay. I'm sure there will be more to come.
    firemanjerry
    Reply Vote

    • RE: Leaked memos confirm Verizon's tiered data ambitions

      @firemanjerry
      Agreed; there will be a LOT more to come, including the likes of Netfliix, other wireless companies, e-mail, Google with their "chrome" everything, all their currently "free" servces, software applications such as java, browsers, etc. etc. etc.. The "time of enlightenment" is coming closer to the "time of reality" once everyone's sufficiently hooked.

      There's a gazillion bucks out there to be sucked down. Enough wll pay for it that the ones that fall off won't even be noticed. Funny: Where the idea to make everything available from one source or app used to be the trend, now it's separatism again so it can be charged for. Those without a life and the means to support one better start thinkinig about alternatives right about now.
      tom@...
      Reply Vote

  • RE: Leaked memos confirm Verizon's tiered data ambitions

    You may be correct with your speculation, but there is another option consistent with the data you present.<br><br>If you read the plan info carefully, it says "unlimited email and web browsing" on a smart phone. It doesn't say unlimited data.<br><br>I know as a customer, I have asked them for more options in terms of data plans for tethering and net books and I suspect so have others. You may be looking at plans for hotspots, tethering and data other than the basic browsing and email functions on a smart phone.<br><br>This would be more consistent with Verizon's advertising around unlimited data on their smart phones.<br><br>If July 7 is the magic date, we will know soon.<br><br>As of June 22, they gave me the same unlimited plan when I upgraded my wife to a Droid 2.
    sbf95070
    Reply Vote

  • Big wide bell curve

    I don't think that anyone can say "this is bad news for consumers" (as opposed to, "this is bad news for me personally") without knowing what the usage distribution looks like. What percentage of Verizon's data customers use less than 75MB a month, are now paying for more than they use, and will view this as a good deal? If we don't know, we can't say this will "hurt consumers".

    The problem with all 'unlimited' and 'bundled' offerings is that they are good deals for people whose usage is above average, and bad deals for people whose usage is less. Over time, the guy who offers "unlimited" collects a customer base consisting almost entirely of heavy users, which means that either his prices have to continually go up or he goes out of business.

    My guess is that there is huge variation in the amount of data used from one customer to the next. Some people will watch a lot of movies, some will never use their smartphones for anything but email. There's just no way to fashion a pricing plan that is fair to people without taking that into account. The heavy users will hate that, because they've enjoyed having the occasional users subsidize their data plan. Too bad; that has to end.
    Robert Hahn
    Reply Vote

    • RE: Leaked memos confirm Verizon's tiered data ambitions

      @Robert Hahn
      I don't know; there surely is such a bell curve as you indicate, but ... it's a HUGE one. Huge enough that even the outer edge on the low side might be enough to make a lot of money from. It's so easy to gather data on people these days just by using public data, that I suspect most companies are going to have a pretty good picture of what the possibilities are for them. Whether/how/and if they implement proper planning remains to be seen of course.
      tom@...
      Reply Vote

    • RE: Leaked memos confirm Verizon's tiered data ambitions

      @Robert Hahn
      It's bad for consumers because there is no advantage to this new scheme only disadvantage. The 75MB option you discuss is only available to feature phone users. So if smartphone users use more than 2GB, they'll have to pay more than they're paying now. If they use less, well they still have to pay for 2GB. Verizon admitted that most people use less than 2GB. I wonder what that distribution looks like; I wonder if the majority of consumers use less than 1GB and will be forced to pay for an extra GB.
      FroggyJ4@...
      Reply Vote

    • RE: Leaked memos confirm Verizon's tiered data ambitions

      @Robert Hahn I fall into the 500-800MB/month category. It probably won't hurt me... What I don't like is the huge overage charges and the fact that the pricing doesn't really correlate to cost.
      snoop0x7b
      Reply Vote

    • Bait & switch

      [i]Customers already signed up for Verizon?s $29.99 unlimited plan will be grand fathered in after the new changes are enforced. (But for how long?)[/i]

      No long at all.

      Can you say "bait & switch"?

      Can you say "captive audience"?

      Can you say "suckers"?

      Don't forget that these folks will see a sticker shock one month sometime here in the near future. And it will be a doozy.
      ScorpioBlue
      Reply Vote

      • RE: Leaked memos confirm Verizon's tiered data ambitions

        @ScorpioBlue
        Expect EXACTLY the same to happen, once the "Cloud" companies have lured suckers (sorry, customers) into storing all of their data in the "Cloud".
        lehnerus2000
        Reply Vote

  • I Disagree

    @Robert Hahn, I disagree that any user is subsidizing another user. It can be determined by looking at the earnings statements that they are making incredible profits on their cell business. My company can only DREAM of margins like theirs. When they charge $10 per gb of data that costs them .08 cents, that is price gouging to me. The only reason they get away with it is some backroom deals where all the big cell companies agree to keep rates set at a certain point.

    If they charged realistic rates, then i would agree with your statement that pay per gb is fair, but until they charge rates similar to what you can get in other countries (for example in the Philippines, a 3RD world country, i can get unlimited hspa+ data for $15 per month), then i think the cell companies need to be stopped from rolling out these heinous plan
    pantherfan690
    Reply Vote

    • OK, but get your facts straight

      I don't understand. Since this article was about Verizon, I looked up Verizon. Their profit margin is 3.32%. You think that's high? Their return on assets is 5%. Big whoop.

      Climb down off the grassy knoll, eh?
      Robert Hahn
      Reply Vote

      • RE: Leaked memos confirm Verizon's tiered data ambitions

        @Robert Hahn
        I looked up Verizon, too, and gross profits were ~60%. Since accountants and businesses do everything they can to reduced profits to avoid taxes, income drops to ~10%, and net income after minority interest was ~2.5%.

        Gross profit for the telecom industry is right up there with the publishing and entertainment industries.

        The gross profit is the much more important number. All the rest is accounting which aims to be as close to 0 without upsetting investors as is possible.
        daengbo
        Reply Vote

      • Don't take the CPA exam any time soon

        Horsefeathers. Gross profit leaves out capital goods employed in providing the product or service. Telecommunications is a hugely capital-intensive endeavor. Most of the cost is buried fiber, buried copper, microwave towers, and so on. None of that gets subtracted from revenue to produce the gross profit number. By your lights, everything beyond paying the electric bill is an accounting trick. OK, but then I get to think you're an idiot.
        Robert Hahn
        Reply Vote

  • RE: Leaked memos confirm Verizon's tiered data ambitions

    How sad- Americans pay the most for pervasive connectivity, world wide and have some of the poorest service capabilities and plans.
    WSguru
    Reply Vote

  • RE: Leaked memos confirm Verizon's tiered data ambitions

    How sad Americans pay the most for pervasive device connectivity compared to the rest of the world, and we have some of the worst service capabilities and plans.... I won't even mention Verizon's crappy customer no service.....
    WSguru
    Reply Vote

  • RE: Leaked memos confirm Verizon's tiered data ambitions

    comparing our networks to those of a third world isn't fair. The more users the more complex each node/tower has to be. The sheer amount of people means that they have more to maintain.

    However, the margins *are* insane. Bandwidth really isn't that expensive, over all. 1 gig costs me 10 cents on AWS, and the price goes down the more i use, not UP.

    That's tiered pricing i can get behind.
    genewitch
    Reply Vote
CNET Join | Log In | Privacy | Cookies Close