Last minute upgraders are hurrying to pre-order the Samsung Galaxy S3 to buy an additional two years for their unlimited data plans and get one last subsidized phone.

If you are a Verizon Wireless customer, today is the last day to exercise options under Verizon’s existing plans before the company’s new “Share Everything” plan regime takes effect. While some customers will save money on the new plans, at least at first, many others will not. Verizon is not forcing existing customers to change plans tomorrow, but you may find it worthwhile to lock in any unlimited data plan for the next two years, even if your contract is not scheduled to end until later this year. Remember, Verizon may be saving you a few dollars today, but its bean counters know that data is a growth industry, so the more devices you add to your plan, the quicker you will be paying more and more to upgrade your allowance.

Droid Life helps cover some of the basics before we discuss your options:

What are Share Everything plans?

Think of them like the family minute and text plans that you have been a part of for years now, but for data. With a Share Everything plan, you purchase a bucket of data at a flat rate for your whole family to use, just like you did with minutes and texts. You no longer have to buy individual smartphone or feature phone data plans on Share Everything. Deciding which plan will best suit your family is the key here, which requires some analyzing of the amounts of data you are currently using.

How are they priced?

The tiers are as follows:  1GB for $50, 2GB for $60, 4GB for $70, 6GB for $80, 8GB for $90, and 10GB for $100. Along with a data tier, you also have to factor in your “per device” cost which is $40 per smartphone, $30 per feature phone, $20 per Jetpack, and $10 per tablet. Mobile hotspot is included with Share Everything at no extra cost as it pulls from your data bucket. If you would like more than 10GB, you can purchase extra 2GB add-ons for $10 a piece. If you go over your data bucket limit, you are charged $15 per 1GB overage.

Minutes and texting are unlimited on Share Everything plans, so your only worry is data usage.

You can read more about pricing at our step-by-step guide to selecting a plan.

Can I keep unlimited data? Do I have to switch to Share Everything?

Yes, you can keep unlimited data. No, you do not have to switch to Share Everything. We wrote up an entire detailed post on this scenario of keeping unlimited data that I recommend you read.

Should I upgrade now?

Maybe. If you want to enjoy one last discounted (subsidized) price on a phone and keep unlimited data, you have to upgrade before June 28. If you upgrade after at a discounted price, you will have to change your plan to either a single person tier (2GB for $30) or join a Share Everything plan. Further details on upgrading now, including Galaxy S3 pre-orders, can be found at this post.

What if someone on my family plan upgrades after Share Everything is live?

While I have yet to get a definitive answer from any higher-ups at Verizon, it is my general understanding that you can always choose something other than Share Everything as long as you are a current customer before June 28. If you are in a family plan now and one of your lines upgrades after June 28 and chooses Share Everything, it will not affect your line. From what I have gathered over the last few weeks, you would not have to choose to join their shared plan. Also, if you want to upgrade after June 28, you can choose between a Share Everything plan and an individual tiered plan starting at 2GB for $30.

Now it’s time to consider some options:

1. Do nothing. If you want to keep what you have until your current contract expires, do nothing. Absolutely nothing will change on your account until a contract expires and you seek to upgrade your phone (or you can depart for Sprint, T-Mobile, or some carrier not using this new pricing). If you stay with Verizon, you can continue with a month-to-month plan until you seek to upgrade your phone. At that point, you will either have to pay full price for an unsubsidized phone (can be up to $600 or more) or get a subsidy with a new tw0-year contract on one of Verizon’s new plans. You will lose unlimited data at this point unless you bring an unsubsidized phone to the party. But financially that may not make sense. Verizon charges the same monthly rates, designed to recoup phone subsidies, whether you have a subsidized or unsubsidized phone, so you are paying the phone company back for a discounted phone you never got.

2. If you are eligible for an upgrade, you may want to use it today! Log into your Verizon Wireless account and check your phone lines for any eligible for immediate upgrades. If one or more are, today is the last day to consider using that upgrade -and- keep your unlimited data plan. Keep in mind you can activate a new phone on any number on your plan (preferably one with unlimited data, of course) and move them around if one of the people on your account can make better use of a new phone than the person eligible for the upgrade. You will commit to a new two-year contract for each line you upgrade and you will pay Verizon’s phone upgrade fee ($30) per phone.

You can buy yourself eligibility for subsidized smartphones by activating a “dummy” extra line with Verizon Wireless for $9.99/month or use it with an older basic Verizon phone without incurring data charges.

3. If you are not eligible for an upgrade, you can still buy at least two more years of grandfathered unlimited data without buying an unsubsidized phone, but you will pay a penalty. Verizon will allow customers not eligible for an upgrade to add additional lines to their account specifically to qualify for new subsidized phones they can use on any number on their account. Let’s say you have two lines active with Verizon not eligible for an upgrade until later this year, but you don’t want to lose your unlimited data -and- you want one last subsidized phone. Simply call Verizon Wireless and ask them to establish two new lines of service on your existing account with a “dummy ESN” registered in their system. You will pay $9.99 per month (plus taxes and fees) on each line with new two-year contracts for each line, but this will qualify you for an immediate subsidized upgrade to any in-stock smartphone. You can also pre-order Samsung’s wildly popular Galaxy S3 ($199 subsidized, $599 unsubsidized).

You will then have two more years of unlimited data on your new phone. If you have older non-smartphones laying around, you can activate them instead of using the “dummy ESN” method and allow someone like a parent or child to share your existing calling plan without running up data charges or text messages (although you can add those options as well if needed).

You should coordinate this over the phone with a Verizon Wireless customer service representative (1-800-922-0204) explaining you don’t currently qualify for an upgrade but want to establish “dummy service” on a new line(s) to win a subsidized phone. Most representatives are familiar with this. But when the new phones arrive, you will want to have Verizon Wireless handle activation themselves because they are equipped to transfer those new phones to replace the existing ones on your account and not lose your unlimited data plan in the process. If you activate them yourself, they will be up and running on different phone numbers and you will have to visit a Verizon store to obtain new 4G SIM cards to switch phones to the correct lines. Let Verizon handle it, and any messes that might occur along the way.

You will not pay any early termination fee for not using your old phones anymore, but you will probably want to call Verizon about dropping contract-expiring lines on your account when their respective contracts expire so you minimize the number of months you are paying an additional $9.99 a month for extra phone lines you probably will not be using. You will neither pay an activation fee or upgrade fee using this method.

Is it an expensive price to pay for an early upgrade? Perhaps, but maybe not if it means buying another two years of unlimited data service.

It is important, however, that you complete any arrangements to order your phone(s) prior to the end of day today. We strongly recommend you work through Verizon Wireless’ own sales department (they shut down for the night at 11pm EDT) to arrange for new phones or pre-orders (which are acceptable to activate later and still keep unlimited data). If you deal with a third party like a non-Verizon store or website, the order may not process in time to qualify within the remaining hours Verizon’s old plans are still active.

By July 2014, we will be back here again trying to maneuver the renewal of unlimited data plans Verizon now hates. But spending time to preserve these plans may be important to your wallet when you consider just a year ago, Verizon charged $30 for unlimited wireless data. Effective tomorrow, they charge $50 for 1GB of data. Where will we be two years from today? The sky is the limit.

Phillip “We’re Still Here to Fight” Dampier

“We’re moving away from one-size-fits-all,” admits Jon Gary Herrera, a Texas spokesman for Time Warner Cable, which has introduced a usage-limited plan called “Internet Essentials” that limits customers to a paltry 5GB of usage per month in return for a $5 discount.

Time Warner Cable has learned from its mistakes in 2009, when the company attempted to force usage limits on broadband customers that would have left those seeking an unlimited experience with a broadband bill of $150 a month. After a consumer backlash organized by Stop the Cap!, the company quickly pulled back and put the plans on hold.

After three years, the playbook is off the shelf once again and being dusted off, although the nation’s second largest cable company is taking things a lot more slowly the second time around.

Lesson one: Broadband pricing and usage plan changes must happen gradually and carefully.

The New York Times reports that cable executives privately admit they are working to charge consumer expectations, starting with the notion that “all you can eat” broadband is what customers want or need.

Time Warner telemarketers have begun re-educating consumers when calling to sign up for broadband, now asking them what they do with their Internet connection and suggesting different plans based on their anticipated usage, not their speed expectations.

So far, sources working for Time Warner Cable in South Texas tell Stop the Cap! the plan is not working too well and few customers are interested in the usage-capped “Internet Essentials” plan that has been marketed in several markets in the state.

“Overage charges will be capped at $75 per month. That means that for $150 per month customers could have virtually unlimited usage at Turbo speeds.” — (April 9, 2009) Landel Hobbs, then chief operating officer of Time Warner Cable

“Customers really are not interested in understanding what their usage level is and don’t see much benefit from the small discount our company is offering those who sign up,” one Time Warner customer service agent privately tells us. “A lot of them have learned lessons from what AT&T and Verizon Wireless are doing with wireless data plans, and they don’t want their home broadband accounts measured.”

Another source tells us those consumers most likely to consider the “Internet Essentials” plan are casual Internet users, particularly older customers on fixed incomes. But they are also the least likely to understand how to measure their usage.

“If you tell people what a gigabyte is, it goes in one ear and out the other and they really have no comprehension about it, and when their family members find out what they signed up for, we inevitably get a call back asking to switch to something else,” another agent tells Stop the Cap! “There is a real hostility about usage limits on home broadband out there, at least among those that understand what they are.”

Lesson Two: Forgive overlimit fees or overages liberally, because consumers will adjust their behavior to use less Internet just by threatening to charge them more.

Time Warner has been very liberal about forgiving customers who exceed their 5GB limit. AT&T has yet to enforce its limits in many markets, in part because of a defective usage meter. Other ISPs with usage limits are also wary about imposing overage fees on customers because of the potential political backlash. In short, the industry hopes the threat of overlimit fees will be sufficient to get customers thinking about their usage and self-limit what they do online, an important tool to wield against customers considering cord-cutting traditional cable TV to watch everything online. Efforts to earn additional revenue from more expensive usage-based broadband plans will come later.

Cable to Netflix: You better think about going back to the U.S. Post Office and mailing DVDs. Our customers can’t afford to throw away their usage allowance on your streamed movies.

The Justice Department’s antitrust lawyers are conducting an investigation into the cable industry’s treatment of online video companies, especially with the increasing number of usage caps coming into the market. With most consumers confronted with a broadband monopoly or duopoly, it is easy for providers to slap limits on usage if the competition follows suit. The new found love of usage caps and usage billing is proving curious to those abroad, because the rest of the world is moving away from consumption limits and towards flat rate broadband.

One Wall Street analyst wants the industry to adopt the meme that if the Justice Department gets away with banning usage limits, the industry should retaliate with usage-based billing, which is just another version of Internet Overcharging.

As with the wireless industry, Wall Street is the primary driving force pushing broadband providers to adopt usage billing and other price increases on broadband to boost earnings. Verizon Wireless and AT&T, responding to investor concerns about slowing growth, see endless profits in their future monetizing broadband usage. With broadband usage rising, charging customers more for using more can bring in endless profits, even as the costs to provide the service continue to decline. Without competition and with no organized opposition by consumers, regulators, or legislators, there is nothing to stop prices from skyrocketing.

Lesson Three: Try to convince customers upgrades are expensive and difficult.

A major enemy of the forces working to adopt income-increasing usage billing are broadband advocates who regularly analyze quarterly earnings of major providers, the costs of upgrades, the price of backbone connections, and the ever-increasing prices for Internet service.

In every case, cable and phone broadband providers adopting the latest broadband technologies are seeing major increases in revenue and profits even as their costs to upgrade and manage their networks decline overall. With providers like Comcast and Time Warner Cable now regularly increasing broadband prices, earnings are higher than ever for flat rate broadband sold in speed-based tiers, and consumers are gravitating towards higher speed service, which brings even more profit.

In 2009, Time Warner Cable faced protesters opposed to usage limits at this rally in front of the company’s headquarters in Rochester, N.Y.

Unfortunately, when cable and phone companies control the pipes that deliver broadband service and monetize their use, the threat to high bandwidth innovation has never been greater.

Netflix tells the New York Times there may be little they can do to stem to tide of usage limits.  Sony, a potential online video competitor, has already pulled the plug on its plan to sell cable channels over the Internet because usage limits will destroy the market for online video.

Netflix has been desperate enough to explore a concessionary move — partnering with the very providers that seem ready to limit customers’ access to their service. Netflix hopes it can find a way to be exempt from the industry’s usage limits, much the same way Comcast has given a free pass to Microsoft Xbox streamed video.

Lesson Four: Control the voices that claim to speak for consumers.

Consumers still overwhelmingly despise usage limits, but without unified action against Internet Overcharging schemes like usage limits and usage billing, the drumbeat of industry voices and the dollar-a-holler groups that parrot their beliefs in Washington will have the upper hand.

Consider the FCC’s “voice of the people” Consumer Advisory Council, infested with corporate interests and groups that would not exist without Big Telecom money paying to keep the lights on.

While the CAC has several authentic voices for consumers, they are practically outnumbered by industry sock puppets like the “American Consumer Institute” run by Stephen Pociask, who happens to be a telecom industry consultant and former chief economist for what is now Verizon. ACI represents the interests of AT&T and Verizon, not consumers. Call For Action is aptly named. It cashed checks written by AT&T.  “Consumer Action” relies on AT&T “grants.”  Many of the other “consumer voices” on the CAC are nothing of the sort. The CTIA Wireless Association is the giant lobbying group for the wireless industry. Not to be outdone, the National Cable & Telecommunications Association (NCTA) is there too, representing the cable industry. Time Warner Cable, T-Mobile, and Verizon are there in person as well, along with the billion dollar broadcast industry in the form of the National Association of Broadcasters. So much for the “Consumer” Advisory Council.

Is it any surprise that with “consumers” like this providing advice, FCC Chairman Julius Genachowski opined he thought such billing schemes were useful.

It is more urgent than ever for customers to prepare for another round of battle against major broadband providers. Time Warner Cable itself fears a repeat of the 2009 public relations disaster, and promises it will always have an unlimited tier available for customers, even if it remains quiet on how much the company would charge for the service. If the cable operator still believes in its former chief operating officer Landel Hobbs, we can give you a clue. In April 2009, Hobbs thought he was delivering a major concession to protesters by offering to bring back unlimited broadband… for $150 a month.

An all-out consumer backlash can bring additional consumer victories, but only if customers are willing to get involved in the fight.

Stay tuned.

Craig Moffett, a Wall Street analyst working for Sanford Bernstein, just loves Verizon Wireless’ new calling plans, which he believes will help Verizon grow profits when most Americans already have a cell phone.

Verizon’s move “is the most profound change to pricing the telecom industry has seen in twenty years,” Moffett told the Associated Press.

Bernstein believes that cell phone companies can keep boosting the all-important “average revenue per user,” or ARPU, by shifting price hikes for services consumers are now using the most. That means wireless data which Bernstein sees as a growth industry. In contrast, customers are using their phones less than ever for making phone calls and sending text messages.

Verizon Wireless CEO Lowell McAdam agrees, telling an investor conference customers will end up paying more money to Verizon than ever before.

Moffett

“Is it going to cost them more money? Yeah, but it will probably shift their wallet spend from things they do individually into a bucket of gigabytes,” McAdam said. “The relationship will change. This will be something much more ingrained in their life as opposed to something that’s attached to their hip.”

Verizon’s “Share Everything” may become ingrained in customers’ wallets when it launches June 28, eliminating voice minute and text message allowances but increasing pricing for data. The cheapest smartphone plan will now run $90 a month. For customers who already pay for unlimited voice minutes and texting and avoid using too much wireless data, the new price will be lower than current Verizon plans. But for those who traditionally choose a calling minutes allowance and send a limited number of text messages, prices under the new plan will be going up by $10-20 a month.

Verizon also hopes to capture an increasing share of wireless data for portable devices. Consumers have typically avoided 3G/4G-capable add-ons for devices in favor of Wi-Fi-only, to avoid the separate data plans that are usually required. Verizon hopes customers will consider spending more on wireless network-capable tablets and laptops that can be added to their existing Verizon accounts. Adding a tablet will cost an extra $10 a month, $20 for a portable 3G/4G wireless modem for a laptop. Data usage will be shared from their existing data plan.

Moffett expects the new plan from Verizon, and a forthcoming one expected from AT&T, to solidify both companies’ dominance in the wireless market.

“In a household with two or three AT&T or Verizon devices — say, a smartphone and a tablet or two, and one device from T-Mobile or Sprint. Sprint doesn’t stand a chance,” Moffett said.

[flv]http://www.phillipdampier.com/video/CNBC Verizon Wireless Plans 6-12-12.flv[/flv]

CNBC talks with Public Knowledge’s Michael Weinberg about the “consumer benefits” of Verizon’s new wireless plans, which Weinberg suggests are few and fleeting.  (3 minutes)

[flv]http://www.phillipdampier.com/video/CNBC Is Wi-Fi Dead 6-12-12.flv[/flv]

CNBC wonders if Wi-Fi is dead as Verizon and AT&T encourage customers to use 3G/4G wireless data instead of more local Wi-Fi networks.  (3 minutes)

By 2050 Australian consumers will need a monthly data allowance of more than 100,000 gigabytes to sustain what will, by then, be considered average use of the Internet.

That finding comes in a report, “A Snapshot of Australia’s Digital Future to 2050,” which is measuring the impact of the country’s transformation to a ubiquitous fiber to the home broadband experience for the majority of Australian consumers and businesses.

Australia and New Zealand are both embarked on a transformative effort to rid themselves of slow speed, copper-based broadband networks. Both are rolling out a combination of fiber to the home service in urban and suburban areas, and fixed wireless networks in rural areas.

The South Pacific region could soon become a global broadband leader for innovation in high speed applications development because neither country will be constrained by broadband networks that deliver the least amount of broadband service for the highest cost.

The report predicts super-fast broadband will literally transform society in Australia, with traditional media as relevant tomorrow as a buggy whip is today.

Market researcher IBISWorld says newspapers, television, radio and the record and film industries are destined for the scrap heap in a new digital world.

The report also predicts the traditional understanding of employment may also radically change, with citizens acting as free agents, pursuing work on individual projects for a variety of employers, leveraging broadband to learn what tasks need to be performed each day. Work will be performed in home offices or on the go using the country’s broadband network.

Universal high speed broadband will transform the information and communications technology sector into a $1 trillion business by 2050 — in Australia alone, predicts the report.

Australia’s PM radio program explores how life in the country will change over the next 38 years with fiber optic broadband a part of virtually everyone’s life.  (June 14, 2012)  (4 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Consumer reporters across the country say Verizon’s boasts of savings for consumers on their new “share everything” plans are hardly universal. Many customers face significantly higher cell phone bills switching to Verizon’s new revenue-boosting plans that eliminate voice minutes and texting allowances.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WCPO Cincinnati Verizon Savings Not So Much 6-18-12.mp4[/flv]

WCPO in Cincinnati’s John Matarese reports why Verizon’s new pricing plan will cost many customers more. (2 minutes)
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WPTV in West Palm Beach talks with CNET about how consumers will need to become better educated to avoid the potential bill shock that comes from expensive, usage-restricted data plans. (2 minutes)
 [flv width=”480″ height=”290″]http://www.phillipdampier.com/video/WWLP Springfield Verizon New Plans 6-15-12.mp4[/flv]

WWLP in Springfield, Mass. informs consumers how quickly they can burn through Verizon’s new $50 1GB wireless data plan. (1 minute)