Home » Video » Recent Articles:

The Return of the Verizon Wireless Unlimited Data Plan Provokes Wall Street Anxiety

The days of wine and roses from wireless data profits may be at risk, according to some Wall Street analysts, after Verizon Wireless on Monday brought back an unlimited data plan it vowed was dead for good in 2011.

The “Cadillac” wireless network reintroduced unlimited data, phone, and texting this week at prices that vary according to the number of lines on your account:

  • $80 a month for one line
  • $70 a line for two lines
  • $54 a line for three lines
  • $45 a line for four lines

Verizon Wireless last enrolled customers in its old unlimited data plan in 2011, and a dwindling number of customers remain grandfathered on that plan, which began increasing in price last year and has since been restricted to no more than 200GB of “unlimited” usage in a month.

Verizon’s new unlimited data plan is a response to pressure from increasing competition, especially from T-Mobile and Sprint. All of Verizon’s national competitors have unlimited data plans with varying restrictions, and Verizon’s lack of one is likely to have cost it new customer signups last year. The company only managed to add 2.3 million postpaid customers in 2016, down from 4.5 million signed up in 2015.

CEO McAdam swore unlimited data was dead at Verizon

Causing the most irritation is T-Mobile, which near-constantly nips at Verizon’s heels with innovative and disruptive plans designed to challenge Verizon’s business model. BTIG Research analyst Walter Piecyk noted Verizon’s claims it does not need to respond to T-Mobile’s marketing harassment just don’t ring true any longer.

“Verizon has a long history of rebuffing T-Mobile’s competitive moves as non-economic or unlikely to have an impact on the industry for more than a quarter or two, only to later replicate the offer,” Piecyk said. “That was true for phone payment plans, ETF payments for switchers, overage etc. We can now add unlimited to that list. How long will it be until Verizon offers pricing that includes taxes? Despite those delayed competitive responses, T-Mobile has maintained industry leading growth while Verizon’s has declined.”

Piecyk believes Verizon Wireless rushed their unlimited data plan into the marketplace and its introduction seemed not well planned.

“We asked Verizon what has changed to explain such an abrupt reversal, but have yet to receive a response,” Piecyk said. “They had recently been running an advertisement promoting the 5GB rate plan that argued why customers do not need unlimited. The rate plan remains, but it is not clear if the advertisement will. The launch of unlimited seemed rushed, coming a week after the exposure they could have secured with a Super Bowl advertisement. The ad run last night during the Grammy’s did not appear to have taken much to produce.”

Verizon Wireless executives have argued for years customers don’t need unlimited data plans and Verizon would no longer offer one:

  • With unlimited, it’s the physics that breaks it. If you allow unlimited usage, you just run out of gas. — Lowell McAdam, Verizon CEO (September, 2013)
  • At this point, we are not going to entertain unlimited. Promotions come and go. We can’t react to everything in the marketplace.” — Fran Shammo, former Verizon CFO (January, 2016)
  • “I’ve been pretty public saying the unlimited model does not work in an LTE environment. Unlimited is a very short-term game in the LTE market. Eventually unlimited is going to go away because you have to generate cash to reinvest.” — Fran Shammo, former Verizon CFO (March, 2016)
  • Unlimited data plans were “not something we feel the need to do.” — Matthew Ellis, Verizon CFO (January, 2017)

Shammo: Unlimited doesn’t work on LTE networks.

The impact of not having an unlimited data plan appears to have convinced Verizon to change its mind, and that comes as no surprise to Roger Entner of Recon Analytics.

“In three to five years, unlimited plans will come back,” Entner predicted in 2011. He claimed back then wireless carriers were initially unsure how to predict data usage growth on their networks and placing limits on usage gave carriers more predictable upgrade schedules. But after several years of data, Entner said carriers can now better predict the amount of data an average subscriber will use in a month, giving them confidence to remove the caps.

Verizon Wireless’ unlimited plan includes several fine print limitations that provide additional network protection for Verizon and manage any surprise usage:

  • Unlimited use is only provided on Verizon’s 4G LTE network. Limits may apply to customers using older 3G networks, which are less efficient managing traffic;
  • Unlimited not available to Machine-to-Machine Services;
  • Customers with unlimited data plans may find their traffic deprioritized on congested cell sites after 22GB of data consumption during a billing cycle. This speed throttle can reduce network speeds to near-dial up in some circumstances, at least until site congestion eases;
  • Mobile hotspot tethering on this unlimited plan is limited to 10GB per month on Verizon’s 4G LTE network. Additional usage will be provided at 3G speeds. This is designed to discourage customers from using Verizon Wireless as a home broadband replacement;
  • Verizon’s ultimate 200GB monthly limit is also presumably still in place. If you exceed it on Verizon’s legacy unlimited data plan, you were told to shift to a tiered data plan or had your account closed.

Piecyk thinks Verizon’s unlimited data plan may have been rushed out.

Although consumers clamoring for an unlimited data plan from Verizon are happy, Wall Street is not. Analysts are generally opposed to Verizon’s return to unlimited, with many suggesting it is clear evidence the days of high profits and predictable revenue growth are over. That is especially bad news for AT&T and Verizon Wireless, where investors expect predictable and aggressive returns. Verizon has already warned investors it expects revenue and profits to be flat this year.

Jeffrey Kvaal with Instinet believes Verizon’s traditionally robust network coverage is no longer an advantage as competitors catch up and unlimited data is the final nail in the coffin for wireless revenue growth. That means only one thing to Kvaal, AT&T and Verizon must pursue growth outside of the wireless industry. Verizon, in particular, is facing investor expectations it will do something bold in 2017, such as making a large acquisition like a major cable operator.

Evercore ISI’s Vijay Jayant believes unlimited data is bad news for all carriers from the perspective of investors looking for revenue growth.  Jayant told investors in the short term, unlimited data may help Verizon’s revenue because the plans are expensive, but in the long run Verizon is sacrificing the revenue potential of monetizing growing data usage in return for a high-priced, flat rate option. That guarantees “customers won’t see their bills rise, even as their usage does,” Jayant said.

Some analysts point out Verizon’s unlimited data plan is expensive, limiting its potential attractiveness to customers considering jumping to another carrier. While Verizon charges between $80-180 (for one to four devices), AT&T charges between $100-180 for unlimited plan customers, who must also sign up with DirecTV to get an unlimited data plan. T-Mobile charges between $70-160 and Sprint charges between $60-160. The cheapest is T-Mobile, because its plans are all-taxes/fees inclusive. All four carriers have soft limits after which customers may be exposed to a speed throttle. AT&T can temporarily throttle users at 22GB, Sprint can throttle above 23GB and T-Mobile after 28GB.

The Wall Street Journal discusses Verizon’s unlimited data plan and its caveats. (4:55)

British Company Solves High Cost of Last Mile Fiber Installation: Use Existing Water Pipes

The Atlantis T-Series is designed to bring a bundle of fiber optic cables to small hamlets or villages through a central water supply system.

One of the biggest barriers to making fiber-to-the-home broadband service available in suburban and rural areas is the cost to dig a trench or string a cable across a property to reach the customer. A British company has patented a clever solution to this last-mile problem by inserting a tiny conduit into pre-existing water supply lines that contains enough optical fiber to power tens of gigabits of internet speed into even the most difficult to reach homes and businesses.

The Craley Group’s Atlantis Hydrotec solution places two temporary holes in the water supply line at the street connection and inside the home through which the non-toxic, environmentally friendly conduit containing the optical fibers passes with no effect on the water supply. The impact on the homeowner is limited to a quick visit to install a connection from the home’s incoming water pipe to an internet router. No trenching or digging is required, and the cost savings from not having to bring in heavy digging equipment, obtain permits to manage traffic-disrupting digs, or tear up lawns and gardens are as high as 70%, making fiber installation cheap and fast for providers.

Craley’s inexpensive solution can make the difference between getting rural fiber broadband or not. In suburban and rural areas, the company’s “T-Series” conduit can be installed in a pre-existing neighborhood or village water system, with individual connections possible for each neighborhood, apartment, home and/or business along a route up to two kilometers long. Up to 288 individual optical fibers are available for use by the provider in each segment. Multiple segments can be used to further extend the network as needed.

Repurposing existing utility infrastructure is not a new idea. Using sewer pipes to accommodate fiber optic cables has been around for several years, and some communities have used them for delivering broadband. But not every project has been successful, and using water pipes for broadband may run into similar problems.

The two primary reasons repurposing infrastructure projects like these fail are money and politics, and it is often for both reasons. If the water authority in an area objects to its infrastructure being tampered with, it is unlikely a provider will win permission to use Craley’s solution. Some water managers may fear the physical connections to existing water pipes could weaken or damage them, although Craley insists this is not the case. In communities where the water supply is a publicly owned resource, there may be political objections to allowing private companies to use public infrastructure — problems that might be resolved through contracts that include provider payments. But if those amounts are too high, licensing Craley’s method may no longer deliver the promised potential savings. In other cases, it may simply come down to a managerial “control” issue.

Consumer confusion can also pose a problem, especially among those that believe any exposure to electronic signals of any kind will impact their health. Fiber optics, of course, transports light signals, but that fact may not be understood by everyone.

There are also examples of communities that had to abandon sewer pipe conduits in favor of traditional trenching because of difficult to overcome objections from local authorities that manage the sewer system, fearing sewer cables will create blockages or other obstructions. Craley hopes the fact its system does not place optical fibers in contact with the water supply and is very unlikely to be an obstacle to the delivery of safe drinking water will overcome traditional skepticism. The technology has proven effective in a small community near Barcelona, Spain, where fiber to the home service was installed using Craley’s system.

It didn’t hurt that the company installing the fiber optic system was the same one that maintains and operates the local water system, which cut through any potential red tape or concerns.

“We have been most impressed with this system and during the installation we gained great insight into the product, installation techniques, and our engineering staff got on-the-job training,” said Jose Maria, the general manager of ATCA, the local water company. “We can really see the advantages of this solution.”

Additional field trials are also underway in New Zealand.

This Craley Group-produced video talks about the benefits of using existing utility infrastructure instead of trenching to supply fiber optic broadband to homes. (3:21)

This company produced video explores the problems faced by rural homeowners with no or inadequate broadband, and how using innovative methods of bringing fiber to the home need not be too expensive. (3:12)

Bless Their Hearts: Frontier Fiddles While Rome, Ga. is Stuck in the Slow Lane

Phillip Dampier November 23, 2016 Editorial & Site News, Frontier, Video 1 Comment

Next time you are on hold or waiting for the service technician to show up to diagnose your interminably slow DSL, here is what the folks at Frontier might be doing instead of taking your call or delivering anything close to the FCC’s 25Mbps standard to qualify as real broadband.

OMG. I just can’t even describe this. From the folks at Frontier Communications Exposed. (4:37)

Let This New Bot Negotiate With Online Chat Reps for a Lower Comcast Bill

Phillip Dampier November 16, 2016 Comcast/Xfinity, Consumer News, Video 1 Comment

trimIf you’re tired of robotic responses from Comcast’s customer service department, Trim has introduced a great new way to retaliate with a free automated bot tool to deal with Comcast while you do something else.

The Chrome browser extension interacts with Comcast’s online chat support to negotiate a lower bill for you when your internet service slows to a crawl, there is a service outage, or if you just need a better deal.

“Our bot is best for checking for discounts and seeing if you can get a customer service credit,” Thomas Smyth, co-founder & CEO of Trim tells Stop the Cap!

That means if you have a long story to share about how Comcast botched your install or their usage meter cannot possibly have measured 30GB of usage while you were on that Caribbean cruise, it is still better to tell the story yourself (or take your complaint straight to the FCC). But when you suffer a multi-hour outage or think you’re paying too much for service and dread the thought of talking to some customer service representative in the Philippines, you can give Trim a try.

Smyth says an average interaction with the Trim bot gets customers an average $10 service credit, perhaps if only to get you (or the bot) off their backs.

Considering how much customers loathe the thought of dealing with Comcast’s customer service, one wonders how we survived without it.

“We couldn’t believe that in a world of email and chatbots, you still had to pick up the phone and call Comcast in order to lower your bill,” Smyth says.

Tackling the biggest of the bully boys appears to be the reason Comcast is getting the bot treatment first, but there are plenty more where they come from.

“We’d love to expand to other cable/phone companies soon,” Smyth tells us. “User-supervised chatbots are the future of customer service.”

And why not, considering how many offshore online agents already rely on cut and paste responses to customer inquiries. Turnabout is fair play.

Comcast, meet the Trim Bot, the latest way to get service credits and a lower bill without actually having to do much of anything. (30 seconds)

AT&T-Time Warner Deal Could Hinge on Data Usage Caps/Zero Rating

AT&T’s rivals are likely to cry foul over the company’s practice of “zero rating,” in which it exempts its own video services from data-cap usage. The Wall Street Journal’s Shalini Ramachandran explains how this could impact the proposed AT&T-Time Warner merger. (2:44)

Search This Site:

Contributions:

Recent Comments:

  • Daya C: My previous usage was nowhere near the limit but now, somehow we are magically going over or very close to the 1 terabyte. Our usage habits have not c...
  • Ty: These is complete BS I currently have WOW! a cable company that builds where other cable companies already serve! And WOW! would be considered a "litt...
  • Private User: Boo this man!...
  • directv: directv now is a pretty awesome service. i have tried dish sling and definitely prefer the layout of directv now much better. pricing is pretty good a...
  • Gluta Lachel di Malang: For hottest information you have to pay a visit internet and on internet I found this web site as a finest web site for hottest updates....
  • Cream Pemutih Wajah Bpom: Thanks for sharing your thoughts about Sabun Pemutih Kulit. Regards...
  • Cara Mengecilkan Perut: Can I just say what a relief to uncover somebody that really understands what they are talking about over the internet. You actually know how to brin...
  • Fiforlif Pelangsing Perut: I must thank you for the efforts you've put in writing this site. I really hope to check out the same high-grade blog posts by you in the future as...
  • debra Gruber: FRONTIER SAID they were giving me promotional credit. for 1 year. I have called them several times regarding this, there is no promotion showing on my...
  • Ryan: Better yet,dump ATSC and switch to DVB-T2. The FCC is considering this. DVB-T2 can recieve signals while moving. Some NC stations even tested DVB-T2 a...
  • Switeck: DSL is shared at the DSLAM level -- these are expensive devices often with limited backhaul, sometimes resulting in even worse contention ratios than ...
  • Lee: With the change in over the air from analog to digital, it is now possible to encrypt the signal and charge for over the air. I expect that to happen....

Your Account: