Verizon Communications is a study in contrasts.  It runs one of the most advanced wired broadband services in the country that wins rave reviews from consumers and businesses, is on the verge of ending its unlimited use data plans for smartphone customers on the wireless side, and has launched a major “police action” against individuals that are using their smartphones as wireless hotspots without paying an additional $20 a month for the privilege.

Verizon Says No to Data Caps and Consumption Billing

When you run an advanced fiber to the home network like FiOS, the concept of data caps is as silly as charging for each glass of water collected from Niagara Falls.  That’s a point recognized by Joseph Ambeault, director of media and entertainment services for Verizon.  Talking with GigaOm’s Stacey Higginbotham, Verizon continues to insist their network was built to handle both today and tomorrow’s network demands.

“Our network is always engineered for big amounts of data and right now there are no plans [to implement caps], but of course you never want to say never because things could change.”

However, in the same conversation he talked about how the FiOS service has gone from offering a maximum of 622 Mbps shared among 24 homes in the beginning to tests of 10-gigabit-per-second connections in individual homes that Ambeault mentioned. For now, Verizon is testing 10-gigabit-per-second-shared connections and offering up to 150 Mbps home connections. This kind of relish for massive bandwidth is not evident in conversations with folks at AT&T or even those cable firms deploying DOCSIS 3.0. Which is why when Ambeault added, “We don’t want to take the gleam off of FiOS,” as his final say on caps, I tend to believe that Verizon may be the last holdout as other ISPs such as AT&T, Charter and Comcast implement caps.

Verizon Says Yes to Ending Unlimited Smartphone Data Plans

Verizon is among the last holdouts still offering unlimited data plans for smartphone customers.  Priced at $30 a month per phone, these plans have proved very profitable for Verizon in the past, in part because they are mandatory whether you use a little data or a lot.  But now as data consumption grows, Verizon’s profits are not as luxurious as they once were, so the “unlimited plan” must and will go, probably within the next three months.

Verizon has always been hesitant about following AT&T’s lead for wireless data pricing, which delivers a paltry 2GB for $25 a month.  AT&T still sells its legacy unlimited plan, grandfathered for existing customers, for just $4 more per month.  So while AT&T can claim they’ve reduced the price for their data plans, they’ve also introduced a usage allowance.  Those exceeding it will find a much higher bill than the one they would have received under the old unlimited plan.

Verizon will probably echo AT&T’s tiered data plans, perhaps with slightly more generous allowances, but the real excitement came from Verizon CFO Fran Shammo, who told attendees at the Reuters Global Technology Summit it was prepared to finally introduce the much-wanted “family data plan,” which would allow every family member to share data on a single plan.  That’s a potential smartphone breakthrough as customers resistant to paying up to $30 a month per phone for each individual data plan might see their way clear to buying smartphones for everyone in the family if they all shared a single family-use data plan.

“I think it’s safe to assume that at some point you are going to have megaplans and people are going to share that megaplan based on the number of devices within their family. That’s just a logical progression,” Shammo said.

Of course, the devil is in the details, starting with how much the plan will cost and what kind of shared allowance it will offer.

Verizon Says ‘Oh No You Didn’t Tether Your Phone Without Our $20 Add-On’

Phandroid posted this copy of a message Verizon customers are receiving if they are using unauthorized third party tethering apps. (Click to enlarge.)

Earlier today, Verizon Wireless customers using popular third-party tethering apps to share their smartphone’s built-in Wi-Fi Hotspot with other nearby wireless devices began receiving the first of what is expected to be a series of warnings that the jig is up.

Tethering allows anything from a tablet computer to a netbook or laptop to share a Verizon Wireless data connection without having to pay for individual data plans for each device.  Third party software applications bypass Verizon’s own built-in app, the 3G Mobile Hotspot, which involves paying an additional $20 a month for a secondary data plan delivering a 2GB monthly usage allowance.

Just as AT&T hated to see the possibility of lost revenue passing them by, Verizon has begun ferreting out customers using these apps and sending them friendly reminders that tethering requires an official Verizon Wireless add-on plan.  While the third party apps are not yet being blocked, most expect Verizon to gradually crack down on their use if customers persist in using them.  Verizon can also block the sale of the apps from the Android Market and can also insert roadblocks to prevent their use.  Or they can follow AT&T’s lead and threaten (perhaps illegally) to automatically enroll customers caught using tethering apps in their paid tethering plans.

The New York Times today published an editorial blasting Verizon’s lawsuit against the Federal Communications Commission for requiring the wireless carrier to offer data roaming on commercially reasonable terms:

With text messages, e-mail and other forms of data overtaking voice as the main form of wireless communication, the rule issued in April will preserve competition in a vital communications network.

There are more than 100 wireless providers around the country, mostly tiny carriers with a network limited to a small area. They depend on roaming agreements to stitch together a bigger footprint, which is essential to compete successfully. If Verizon were to prevail — AT&T has, so far, not joined the lawsuit but has criticized the rule — the two dominant players could refuse to deal.

In fact, there is evidence Verizon and AT&T have spent years foot-dragging their way to roaming agreements for data, an increasingly vital service for the handful of independent cellular service providers, almost all operating with limited local service areas.  Although roaming agreements cover voice phone calls, such agreements for data roaming have traditionally been much rarer.  When the FCC threatened to regulate, the pressure was on and both AT&T and Verizon quickly reached agreements with many carriers, some of whom complained about outrageous roaming prices up to $1 per megabyte.

The Times argues that with wireless marketplace concentration accelerating with the impending merger of T-Mobile and AT&T, fair data roaming rules are essential.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/WSYR Syracuse Banking trojan fakes Verizon Wireless website 5-20-11.mp4[/flv]

If you paid your Verizon Wireless bill on Verizon’s website anytime from May 7 to May 13, you may now be at risk of identity theft. The company’s website was not hacked or compromised, but customers who used computers without adequate anti-virus protection may have fallen victim to a banking trojan that collected personal and banking information and sent it on to points unknown.  WSYR-TV in Syracuse delivers the bad news.  (2 minutes)

Naughty! (Unless you pay extra)

Wireless carriers want you to pay them extra if you use your phone’s built-in Wi-Fi hotspot feature to share wireless data with your other devices.  Now Verizon and T-Mobile are joining AT&T in shutting down some loopholes that allowed third party applications to deliver tethering service at no additional monthly charge.

The first step in locking down tethering is removing easy access to applications that allow it to happen.  As of this week, access to the most popular tethering apps, including Easy Tether, Internet Sharer, Klink, PDAnet and Tether for Android have been blocked from the Android Market, which means customers can only install these applications using a complicated process to manually install the software.

The next step, already underway at AT&T, is to identify and warn customers using these “unauthorized” apps that they are violating the terms of their wireless contract.

AT&T customers began receiving text messages warning them that the company’s own tethering plan would be automatically added to their accounts if tethering continued.  Verizon has not gone that far yet, but T-Mobile has, sending warnings and blocking access for customers who are not paying an additional $14.99 a month for the service, currently unlimited.

Verizon Wireless customers will have to pay $20 a month for up to 2GB of access, each additional gigabyte priced at $20.

AT&T customers can add tethering for an additional $15 (for 200MB), with additional plans delivering more access for more money.

Google, responsible for administering the Android Market, notes it is not “blocking” the app, merely making it “unavailable for download at the request of wireless carriers” — a distinction without a difference for most consumers.

5-10-2011 Correction:  AT&T’s website claims you need the 4GB DataPro plan for Smartphone tethering, which provides an allowance of 4GB of data for $45 a month, with a $10/GB overlimit fee per GB over.

Verizon 4G users across the country are still without their super-fast wireless service thanks to a major outage that wiped the LTE network out for users of the HTC Thunderbolt, Samsung Charge, and mobile broadband units from Novatel and Samsung.

The network has been down since late Tuesday evening, and Verizon took their sweet time telling customers, only admitting the outage after media outlets began reporting on it.

Verizon Wireless spokesman Jeffrey Nelson says 4G users are temporarily being punished with data sessions that use Verizon’s ancient 1XRTT data connection — largely worthless for most broadband apps:

We are aware of an issue with 4G LTE data connections and our network engineers are working to resolve this quickly. We have determined the cause of our issue and are working with our major vendors to restore connections.

• 4G LTE Smartphones will still be able to make calls.
• Customers are temporarily unable to activate any 4G LTE devices.
• Please note: Customers may experience a 1XRTT data connection during this time.
• After determining the cause of our 4G LTE network connection issue, we are continuing to work to restore connections.
• We expect to see the network restored on a market-by-market basis. Timing and additional details will be provided as they become available.

Lucky for Verizon comparatively few customers rely on LTE service.  As of late Wednesday evening, the service remains down.