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Forbes magazine reports that Verizon Wireless shareholders can expect the company to enjoy fatter profits and reduced capital expenses from the upcoming deletion of grandfathered unlimited data from the company’s roster of data plans.
Trefis, a Wall Street analysis firm that uses MIT-developed modeling technology to predict future company performance, reports Verizon is on the verge of “monetizing every last byte of data that is transferred on its network.”
Verizon’s decision to end unlimited — announced by the company’s chief financial officer at a recent Wall Street conference, will compel customers upgrading to a 4G-capable phone to forfeit their unlimited plan in favor of tiered data.
With Verizon’s 4G network up and running in a large cross section of the country, the wireless carrier has an interest in moving customers to its more efficient LTE platform, which can sustain greater data traffic. With a de-emphasis on 3G, Verizon will be able to reduce capital investments required to maintain that older technology, yet enjoy the financial benefits monetized data usage will bring.
Verizon also plans to introduce shared family data plans, letting customers share a single usage allowance across multiple data devices. But Trefis warns Verizon it must avoid pricing that plan too low, because it could cannibalize the average fees collected from each subscriber (ARPU) who would otherwise have to pay Verizon for a data plan for every device. Instead, Trefis recommends Verizon price family share data plans in a way that keeps ARPU levels stable, which means consumers would not see much savings from the plans.
More importantly, shared data plans will set the stage for explosive wireless data revenue growth in the future, as customers get used to paying connectivity charges for every wireless device, appliance, automobile, and other future technology that supports so-called “machine-to-machine data exchanges” that could become commonplace in the next few years.
“Done right, Verizon could see higher ARPU levels in the coming years as subscribers increasingly use data intensive applications on its speedier 4G network and the carrier is able to monetize every byte of data that the subscribers use with its tiered data buckets,” Trefis recommends.
Maybe it’s just nostalgia or rose-colored glasses, but I don’t remember back twenty years ago that Corporation meant evil greedy asshole. I mean, seriously. They’re basically saying, “Screw the customer, make ’em give us all their monies! Bwahahaha!”
That’s because 20 years ago we actually had competition in regulated markets, and consumer protection via agencies to ensure service agreements were fulfilled.
Now you have neither, and in the majority of the cases you can’t even sue the corporations as a class action because you’ve lost that right as a customer as to keep them in line. When they are caught like AT&T and Verizon have been after years of false billing/charges on millions of customers, it’s a slap on the wrist for a few hundred million dollars or service credits.
My family has been with verizon wireless for 8 years now and last April we decided to get our iPhone 4’s sooner than later with the understanding that we would be able to keep our Unlimited Data forever, thanks for back stabbing us Verizon. The worst part is AT&T hasn’t even taken my Uncle’s Unlimited Data and he has had it for around 3 years now! Who would ever think AT&T would be nicer. My family recently decided that if Verizon does want to pull our Unlimited data out from under us then we would happily take our money to… Read more »
AT&T isn’t that nice, your Uncle’s “unlimited data plan” is now limited to 3GB, once exceeded AT&T throttles its speed down to dialup modem levels.
Taking business to Sprint, T-mobile, or pre-paid plans, are really the only options we as consumers can send a message to AT&T and Verizon we won’t tolerate the price gouging and abusive voice & data plan changes.
I was a former Sprint customer who left (with just about everyone else) during the Soviet-style “Peggy” customer service days. Verizon’s Cadillac network does deliver the coverage they boast about, and that has been worth a few more dollars a month to me. But the ongoing schemes both Verizon and AT&T are engaged in are driving me each contract renewal to reconsider Sprint. But before I will switch, I need to see Sprint develop a real LTE network, not the ludicrously poor Clearwire, and some additional coverage enhancements. Sprint is unfortunately stuck using higher frequencies for some of their services,… Read more »
I need to speak with someone of authority to help me with a problem. My name is Ellisteen Cooke and I have been a customer for over 12 years. I recently updated to phones and currently have a share anything plans. The number I calling about (773-XXX-XXXX) I purchased this phone for my son as a gift and shipped it by UPS. I didn’t know at the time of shipping how much the phone was worth (Apple 4 – 8 g) .My son was to receive it November 19, 2012 the package arrived and the phone was missing. Unfortunately I… Read more »
C O R R E C T I O N: My son never received it. I need to speak with someone of authority to help me with a problem. My name is Ellisteen XXXXX and I have been a customer for over 12 years. I recently updated to phones and currently have a share anything plans. The number I calling about (773-XXX-XXXX) I purchased this phone for my son as a gift and shipped it by UPS. I didn’t know at the time of shipping how much the phone was worth (Apple 4 – 8 g) .My son was to… Read more »
Ellisteen, you posted this to a public message forum, so I removed some of your personal information to maintain your privacy. It sounds like you purchased the phone yourself and -you- shipped the phone personally to your son, is that correct? It is very important to understand who shipped the phone — Verizon Wireless or you. If your son never received the package at all, UPS should be able to identify where the phone is, and you can call them directly at 1-800-742-5877 with your UPS tracking number and let them put a trace on the package. If you personally… Read more »
Please I thought I was emailing Verizon. I was angry at the moment and was directed to the same customer service telephone. Verizon and I are in the process to help me, and I will let you know the outcome. Up to now the Verizon had great customer service and the only reason I wrote this because I was trying to get someone else with authority to speak with at Verizon (the site I needed to go to).