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Verizon Wireless Ends “Unlimited” July 6th; Existing Customers Can Keep Their Unlimited Plans

Phillip Dampier June 21, 2011 Competition, Data Caps, Verizon, Wireless Broadband 15 Comments

Verizon Wireless will end its unlimited data smartphone plan on July 6th, pushing future customers to choose usage tiers priced at $30 for 2GB, $50 for 5GB, or $80 for 10GB.  But existing customers with either 3G or 4G phones can keep their existing unlimited data plans indefinitely, according to leaked Verizon memos.

Droid Life has become information central about the end of unlimited data at Verizon, thanks to some good connections with employees willing to share internal company memos.  They’ve learned Verizon also plans to make some other price adjustments effective July 7th:

Tethering pricing (in addition to your existing data plan, charged separately):

  • 2GB — $20/month
  • 4GB – $50/month
  • 7GB – $70/month
  • 12GB – $100/month

Overlimit fee: $10 per gigabyte.

Tablet plan pricing changes: Delete $20-1GB tablet plan, replaced July 7th with a $30-2GB plan.

From a Verizon memo to employees:

Data Pricing Evolution…The Present
Our legacy data pricing structure was designed to address a somewhat different customer need profile than what we are seeing and can expect in the future.

Consider this. Data usage has more than doubled over the last three years. Consumers and business users alike are doing more and more with their mobile devices. The notion of “send and end” has migrated to “managing multiple aspects of one’s lifestyle through mobility.” Whether it’s social media (85%+ of Smartphone users), mobile internet (88%+ of Smartphone users), or email/applications (71%+ of Smartphone users), this usage has one thing in common—dramatically increased demand for data and media consumption.

As a result, we are evolving our approach around how we package our data solutions and pricing to our customers. Coming soon, Verizon Wireless will move from our existing pricing format to a structure designed to allow customers to choose the right data solution that best aligns with their needs.

The Value Benefit Equation…
With the new usage based pricing plans, the vast majority of our customers will be able to enjoy their typical level of data consumption for the same value that they outlay today. Additionally, for those who have greater requirements for data, we will have solutions that they can tailor to their unique needs.

Perhaps more importantly, given our strong desire to continue to provide enhanced capability and value to our customers, the new data pricing will apply to both our 3G AND 4G LTE networks. So in essence, for those customers in our ever and rapidly expanding 4G LTE network coverage footprint, users will gain the benefit of the fastest and most advanced 4G LTE network in the U.S. all for the same usage based value. More speed. More functionality. Same value.

When Verizon first spoke about AT&T ending its unlimited use plans, we noted company officials seemed hesitant to sign on to AT&T’s specific pricing model.  We interpreted that to mean AT&T was being too stingy in Verizon’s eyes.  Stupid us. Instead, Verizon is going to charge $5 more than AT&T for most of its data plans, presumably milking its much-better reputation for service and reliability.

The existing price for Verizon’s unlimited smartphone data plan is $29.99 per month.  After July 7th, one penny more buys you only 2GB on Verizon’s network.

Customers can lock in unlimited data if they sign up for service before the end of the day on July 6th.  All existing customers who want to keep their unlimited data plan can, apparently even when changing phones, for the foreseeable future.  But nothing is forever with AT&T or Verizon.  We suspect “forever” will expire when average smartphone data usage approaches the 2GB limit their future $30 plan will feature.  Currently, the vast majority of smartphone users consume less than 750MB of data per month.

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naginalf
naginalf
13 years ago

How’s about NO DATA?! Can I get that? NO!!! Of course not, because, “smartphones REQUIRE a data plan in order to operate properly” as I’ve been told by each and every provider, which is a complete lie in order to get you to pay AT LEAST $80/mo. But can I buy their phone and use it without having their locked software, NO. I have to hack it. That’s BS. I’ve complained to the FCC, BBB, and anyone else willing to listen. No one seems to. And I don’t understand why customers put up with this. Oh wait, THEY HAVE TO.

Tim
Tim
13 years ago

“Wireless carriers always knew they’d quickly earn back subsidies…” Can we please stop using the word “subsidy”? The phones are not subsidized. If they were subsidized, you would see you bill go down after 2 yrs. The reason for the lower price is to lock you in for 2 yrs. Do you really think those phones cost as much as they tell you they cost? I got news for you, they don’t. They jack the price of those smart phones up so high, you have no choice practically but to sign a 2yr agreement. $600-$800 for an iPhone, please. I… Read more »

Tim
Tim
13 years ago

If it was a true phone subsidy, you would see the phones full price on your bill and some of your monthly bill going towards the phone. At the end of your contract, you would see a price drop on your plan. Get a phone for $200 and then try to cancel your plan say 4 months before it is up and see if your ETF is prorated.

Matt
Matt
13 years ago

They will let you hold on to it for awhile, but they’ll do the same thing they did with the old America’s Choice plans and force you to change it in order to get the latest and greatest.

Scott
Scott
13 years ago

The FCC really needs to crack down on the forced DATA plans for Smartphone’s, and allow consumers to request a voice only plan for their Smartphone as a consumer plan. I’d drop my data plan in a second if I could, between home and work I have WiFi 90% of the time and that’s good enough for me if it saves $30/mo off my bill. If you take the providers own claims of the extreme costs of handling those bits and bytes that they charge a premium for, you would only think they’d be more than happy to get people… Read more »

Andrew Madigan
Andrew Madigan
13 years ago

As with (I assume) anyone who got the Motorola Droid on launch day with a new contract, my Droid can be upgraded on July 7. I wonder, will they let me upgrade to a 4G plan and keep my unlimited plan?

Otherwise, I’ll be jumping to Sprint. I’d be surprised if I’ve ever exceeded 2GB, but I won’t pay for a capped plan.

Tim
Tim
13 years ago
Reply to  Andrew Madigan

From what I have been told by Verizon reps and seen on other websites, people on unlimited plans now will be grandfather in.

jr
jr
13 years ago

High tech paperweight

James R Curry
James R Curry
13 years ago

I wonder if the offer to grandfather in existing users will conveniently expire a few days before a new iPhone launch, sometime in the future.

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