dslreports logo
Verizon's New Wireless Pricing Is An Insult
Again, 'Open Network' Push Is About Nickel And Diming Users

It's been made fairly clear that as Verizon loses the ability to lock down their phones and network (forcing consumers toward their wireless handset content), the carrier is going to make up for it by squeezing the pipe and imposing some steep per-byte charges. A recently leaked Verizon memo gave insight into the company's new wireless pricing plans for Internet-enabled handsets not quite powerful enough to be considered "smartphones": $9.99 for 25MB (50 cents each additional MB) or $19.99 for 75MB (30 cents each additional MB).

If you're a smartphone customer, you can still of course pay $60 a month for 5GB worth of data, but the significant majority of customers are going to be using what Verizon's now calling "Enhanced Multimedia Phones," which come tied to this new pricing. The company this week launched the first phone that utilizes this new, not so bargain basement pricing: the 3.1-inch AMOLED touch screen Samsung Rogue:

quote:
The Samsung Rogue will serve as the flagship phone for the company's new data pricing option available to customers beginning today. The new data pricing gives Verizon Wireless customers more freedom to select how much data and the type of data they want to use. . . Customers who want to watch full-length TV shows plus news, sports, weather and live entertainment video clips can also add Verizon Wireless' new V CAST Video on Demand plan...
Except with such low caps and steep overages, customers interested in freely wandering the web consuming video are going to be punished for their curiosity. That's of course where Verizon comes along to direct customers back to their $10.00 monthly VCAST video service. Previously, users who rarely went online could pay (an equally ridiculous) $1.99 per megabyte, though at least they had the option of choosing to not pay if they didn't use the Internet. Heavier users could sign up for the "unlimited megabytes" offered by Verizon's $15 a month Vcast VPak.

Now, data plans for every new Verizon "Enhanced Multimedia Phone" going forward are mandatory. Existing users will be grandfathered, though that obviously will change as they finish out their contract and sign up for new devices.

So what's the motivation? More money for an already very profitable company, silly. Verizon Wireless' second quarter results indicated that wireless data revenue comprised 29.3 percent of total Verizon Wireless revenues (net $3.16 billion in the second quarter alone), and jumped 24 percent from one year earlier. Verizon's already impressive wireless profits are about to get more impressive, and while that's great news for investors and Verizon executives, it's not particularly great news for you, or the generally open nature of the Internet.

You quickly begin to see how Verizon's promise of an open wireless network is somewhat disingenuous and is, as we stated back in 2007, really about nickel and diming users with unreasonable data charges. Verizon's pricing model offers virtually no value to consumers, while the company continues to shove users in the direction of their inferior content offerings. Ever since being busted by New York's Attorney General for pretending to offer unlimited data, Verizon's been looking for the chance to shift to wireless per-byte billing, and that chance is finally here.

Even if per-byte billing is the answer (and consumers have repeatedly come out against the idea) Verizon could have imposed more reasonable pricing. Instead, as Time Warner Cable recently did, Verizon went right for the pie in the sky, imposing pricing that's so out of line with real world costs it has to be considered a slap in the face.
view:
topics flat nest 
glinc
join:2009-04-07
New York, NY

1 recommendation

glinc

Member

Simple

If you dont want to pay this data plan just don't get a "Enhanced Multimedia Phone"

If people want something shiny and new then pay for the cost of it.

ptrowski
Got Helix?
Premium Member
join:2005-03-14
Woodstock, CT

ptrowski

Premium Member

Re: Simple

said by glinc:

If you dont want to pay this data plan just don't get a "Enhanced Multimedia Phone"

If people want something shiny and new then pay for the cost of it.
I am willing to bet almost all new phones they release will be now labelled as an "Enhanced Multimedia Phone" if it texts or has a browser.
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: Simple

I wouldn't go that far. They'll probably include all messaging phones and all phones with a screen larger than 128x176 though.
88615298 (banned)
join:2004-07-28
West Tenness

1 recommendation

88615298 (banned)

Member

Re: Simple

said by iansltx:

I wouldn't go that far. They'll probably include all messaging phones and all phones with a screen larger than 128x176 though.
And that's 100% of all phones. there's not a phone for sale for Verizon that has a screen smaller than that. if you're not using a service you shouldn't have to pay for it. PERIOD.
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: Simple

Not 100%. You can get a basic flip phone from Verizon that just calls and texts, with limited web access. You're just not the target audience for said phone.

Veloslave
Geek For God
Premium Member
join:2003-07-11
Martinez, CA

1 recommendation

Veloslave

Premium Member

More Simple

You get what you pay for and if Verizon has to raise prices a little I for one will be sticking with them as I have for many years now.

They are slow and conservative about new technology.

They are more expensive than some competitors

And they have the best dang network and especially customer service around.

Been with ATT... know all about Sprint

going to stay right where I am with reliable/great service
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: More Simple

To each his own. Verizon's network is great, no doubt. They're also progressive (not conservative) about their technology path when they want to be. Take LTE, for instance.

That said, I'll take Page Plus Cellular with $40 unlimited talk and text with 20MB of data over Verizon's own otions, unless I really have to have LOTS of data...

Veloslave
Geek For God
Premium Member
join:2003-07-11
Martinez, CA

Veloslave

Premium Member

Re: More Simple

I agree with the progressive as long as you consider that they are usually the slowest to market with devices due to rigerous inhouse testing... making guys like me very antsy waiting for the new dope
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: More Simple

They are rather slow with phones, but network techologies are a whole different deal...

Veloslave
Geek For God
Premium Member
join:2003-07-11
Martinez, CA

Veloslave

Premium Member

Re: More Simple

True... first to have 2.5G and 3G and with real penetration

CMON LTE !!!

(can you taste it?)
dfxmatt
join:2007-08-21
Crystal Lake, IL

1 recommendation

dfxmatt to ptrowski

Member

to ptrowski
I would say you are very correct, as they used to call any phone with a camera a multimedia phone and still do, IIRC. rebranding, old features, etc.

cableties
Premium Member
join:2005-01-27

cableties

Premium Member

Re: Simple

Most new phones ARE with keyboards, camera, video-capable. This is rape. They figured they could just copy(collude with) the credit card companies by jacking it up and seeing who will still pay, or put their bills on the credit cards!!!

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

1 recommendation

FFH5 to glinc

Premium Member

to glinc
said by glinc:

If you don't want to pay this data plan just don't get a "Enhanced Multimedia Phone"
And if you are going to be a HEAVY user of wireless data, then you should get a real smartphone and then get a data plan set up to go along with that.

These enhanced multimedia phones and pkgs are set up for someone who is going to check a score on a sports team or get a weather forecast or look up the address of a store.

For people wanting to watch live video and read their email and check in to Facebook, then bite the bullet and go for the smartphone with the 5GB plan.

tubbynet
reminds me of the danse russe
MVM
join:2008-01-16
Gilbert, AZ

1 edit

tubbynet to glinc

MVM

to glinc
said by glinc:

If you dont want to pay this data plan just don't get a "Enhanced Multimedia Phone"

If people want something shiny and new then pay for the cost of it.
the problem is that verizon is essentially limiting what i can and can't choose.
i have a smartphone (iphone 3gs) that work pays for. i use it a lot. i like the phone and the integration with the apps. the experience is much better than on my previous phone (blackjack ii) and the keyboard is a moot point (the blackjack was horrible for my fat fingers).

when i purchase a personal phone (since my employer doesn't mind personal use, but they will inform you if you are using "excessive" minutes), i am not looking for wireless data, watching video, or checking sports scores. i have my work phone to do that. i am looking for a egonomically balanced phone that i won't mind using to send a text to my wife, hold for longer calls with family, and one that could withstand my son getting to it every now and then. i don't want verizon to limit my phone choice by requiring that i *need* a data plan that i won't use. i chose a phone by layout and comfort, not by what it can do.

my situation (while it could be considered unique), isn't that off from a normal consumer. there are some people that just want a free phone. there are some that want the latest and greatest technology. there are also some that just want a phone. for those people, you are saying, you can have this phone to make calls, but we're going to charge you like you're watching video. i'm sorry, but i get frustrated when i can't dial a number because my finger hits the 4 instead of the 7.

it may be "the trend" to have a phone that can do everything, but in following the trend, verizon is pissing off a lot of people.

q.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Simple

said by tubbynet:

i don't want verizon to limit my phone choice by requiring that i *need* a data plan that i won't use. i chose a phone by layout and comfort, not by what it can do.
Choose a different provider. You have a choice

tubbynet
reminds me of the danse russe
MVM
join:2008-01-16
Gilbert, AZ

tubbynet

MVM

Re: Simple

said by openbox9:

Choose a different provider. You have a choice
apparently you've never been to some rural areas only served by verizon.
i have a personal verizon cell because it is the *only* carrier i've used that has worked where i travel (and in my hometown).

believe me, if i could rid myself of the scarlet v*, i would. its not an option.

q.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Simple

You're right. I've never seen a rural area only served by Verizon that didn't have at least other local providers. I like my Verizon service. It works where I need it, when I need it.

tubbynet
reminds me of the danse russe
MVM
join:2008-01-16
Gilbert, AZ

tubbynet

MVM

Re: Simple

said by openbox9:

I like my Verizon service. It works where I need it, when I need it.
you're right. it works. its been stable and i've used (older) verizon amps with a 3-watt booster and an external antenna to make a phone call that was over 80miles (straight line) from the tower. could have used 1xrtt but the return path from my phone wasn't reaching the tower. kicked the phone down to amps service and it worked.
all things aside, i still don't like being bullied into a certain plan. but, i guess everyone is different.

q.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Simple

I'm not being bullied into a certain plan, so I don't understand the concern.
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin

Member

Re: Simple

Because unlike providers in every other major industrialized country, Verizon is the only "competitor" with quality nationwide coverage.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Simple

Every other major industrialized country? So you're blaming VZ because they've built a quality network? I'm not sure what point you're attempting to make.

grydlok
join:2004-01-06
Richmond, VA

grydlok

Member

Re: Simple

Built or bought?
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Simple

Both.
ShellMMG
join:2009-04-16
Grass Lake, MI

ShellMMG to openbox9

Member

to openbox9
I sit between two Alltel towers, love my Huawei EC228 aircard, pull down nearly 2.5-3G on a consistent basis, AND am holding on to their TRUE unlimited internet access with a death grip. I have a year left on my Alltel contract and am constantly on the hunt for an alternative.

Don't mention satellite. Been there, done that.

Sprint won't reach. AT&T barely does and my friends with iPhones can't use them in our house.

Alltel has been very good to me. I'll be sorry when the merger is complete, but I'm crossing my fingers that Sprint's new TRUE unlimited package will put the thumb screws to Verizon to offer a competitive alternative.

Yeah, yeah, I know, I know...
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: Simple

you should have resigned with Alltel and you still can. They're not fully merged yet. Go and sign for another 2 years and have 3 years left

delus again
@algx.net

delus again to tubbynet

Anon

to tubbynet
»www.mycricket.com/cricke ··· /phoenix

Would the 45 dollar plan work for you?
Unlimited talk
unlimted text
unlimited international text
unlimited data
and roam on verizon when you dont have cricket or PEC coverage.

No contracts, no credit.
jameswade
join:2001-12-09
Hot Springs, NC

jameswade to tubbynet

Member

to tubbynet
Verizon was the only provider around here for a long time. I dropped their poor service and poor coverage as soon as another company showed up. This company has poor service too, but at least the coverage is good.

I'm telling my friends and neighbors and they're dropping Verizon. As soon as the next round of smartphones shows up for the new cell service Verizon is going to lose all of our Blackberry and cell phone contracts

Good going Verizon!

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace
join:2004-08-07
New York, NY

1 recommendation

wifi4milez

Member

Dont like it? DONT USE VERIZON...

I think my subject line above says it all.

Jim Gurd
Premium Member
join:2000-07-08
Livonia, MI

Jim Gurd

Premium Member

Re: Dont like it? DONT USE VERIZON...

said by wifi4milez:

I think my subject line above says it all.
I don't use Verizon. I've been with AT&T since 2003. Originally I was going to go with Verizon until I compared their prices. They were vastly more expensive than their competition and I couldn't justify paying more and not getting more.
glinc
join:2009-04-07
New York, NY

glinc

Member

Re: Dont like it? DONT USE VERIZON...

how are they more expensive?? the prices are the same basically, except that att has rollover and charges you upgrade fee every time your upgrade date is due and get a new phone.

en102
Canadian, eh?
join:2001-01-26
Valencia, CA

en102

Member

Re: Dont like it? DONT USE VERIZON...

On T-Mo/AT&T, you can put in unlocked devices, and not have to purchase through VZW as an expensive process.

Also, AT&T, and Sprint, in my case offer good workplace discounts.

I just never liked Verizon Wireless.

•••

Matt3
All noise, no signal.
Premium Member
join:2003-07-20
Jamestown, NC

Matt3 to glinc

Premium Member

to glinc
said by glinc:

how are they more expensive?? the prices are the same basically, except that att has rollover and charges you upgrade fee every time your upgrade date is due and get a new phone.
We switched from Verizon to AT&T and saved about $50 a month for the same 3-line 1400 minute Family Plan. It was mainly the fact that AT&T includes the first additional line in their family plan pricing, Verizon does not, as well as the cheaper data plans, usually 50% the cost of a Verizon data plan. That $50 we saved was even factoring in that we added two iPhone data plans, so if we would have stuck with just a single unlimited data plan like we had with Verizon, we could have saved $65-$80 dollars.

fifty nine
join:2002-09-25
Sussex, NJ

1 recommendation

fifty nine

Member

Re: Dont like it? DONT USE VERIZON...

I have Verizon as my personal phone, and AT&T as a work phone.

Around where I live, Verizon gives seamless coverage. AT&T frequently has dropped calls and garbled audio.

Sure you may save a few bucks, but as they say, you get what you pay for.
duranr
join:2006-10-14
Leonia, NJ

duranr to wifi4milez

Member

to wifi4milez
said by wifi4milez:

I think my subject line above says it all.
The Problem is that the big 4 seem to collude when it comes to price hikes (TXT MGS?). So even If decline to use Verizon because of this, the other three will eventually follow suit. And It still becomes my problem.

••••
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to wifi4milez

Member

to wifi4milez
said by wifi4milez:

I think my subject line above says it all.
and if that's all you can get?

•••••••
jfd15
join:2008-01-07
West Sacramento, CA

jfd15 to wifi4milez

Member

to wifi4milez
Dont worry - I dont and never will use Verizon (or AT+T, for that matter)

instead of the colluders i use Metro PCS and get unlimited everything for $57/mo. - no crappy 2-year contracts, nobody counting my minutes, nobody colluding to keep up prices + buying govt officials + reps, and the funny thing is Metro makes a ton of profit off me because i probably use no more than 150-200 min a month and a little bit of web but its worth it not to have some shitty company counting your minutes...

(and they give you a free first month!!!! )

SimbaSeven
I Void Warranties
join:2003-03-24
Billings, MT

1 edit

SimbaSeven to wifi4milez

Member

to wifi4milez
One thing from watching the Bresnan commercials here (with Mr. Bresnan):

"We would be nothing without our customers". Too bad no one else will say that.

morbo
Complete Your Transaction
join:2002-01-22
00000

morbo

Member

was considering Verizon

Based on a recent thread, I have been considering moving to Verizon for their great nationwide coverage especially for 3g. However, I have to reconsider if it is going to cost me such an outrageous amount to do so.

adisor19
join:2004-10-11

adisor19

Member

That'll teach you for using a CDMA provider

Hope this sheds more light into how locked you are when using a CDMA provider.

There is no escape from the fees no matter what you try. At least with a GSM provider, you could buy an unlocked phone and put the SIM card in it with no worries of being forced to pay extra charges for no reason.

Adi

•••••••••••••••••••••

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

1 edit

FFH5

Premium Member

Aside from cost issues, these 2 Samsung phones look good

Samsung Rogue:
Pic: »www.newscom.com/cgi-bin/ ··· os084862
Verizon link: »www.verizonwireless.com/ ··· eId=4987

Samsung Intensity:
Pic: »www.newscom.com/cgi-bin/ ··· os084863
Verizon link: »www.verizonwireless.com/ ··· eId=4986

Look good for texting; messaging(email); & light browsing.
bullet087
join:2006-05-17

1 recommendation

bullet087

Member

Incorrect info

"If you're a smartphone customer, you can still of course pay $60 a month for 5GB worth of data..."

Incorrect. Smartphone data plans are $30 or $45 each (on top of your regular voice plan). It's $60 if you want to legally tether your smartphone to your computer.

Killa200
Premium Member
join:2005-12-02
TN

Killa200

Premium Member

Hmm...

Perhaps just a glitch, but i went through the checkout system at the VZW site for curiosity, and i was able to ad the rogue to the premium and connect plans, which have "Unlimited Data for Mobile Web and Get it Now/Media Center"....

••••••••

huju
@comcast.net

huju

Anon

Good luck!

I get 20% discount for Verizon and I still can't find an excuse to change to them from T-mobile. Their phone offering is a joke and their prices are crazy. I pay 49.99 for unlimited calling and 5 for 300 messages. All I can say bring your laptop and get a internet card. For these prices they should be locked up for stealing.

Homer J
Mmmm, Free Goo
join:2000-10-05
Knoxville, TN

Homer J

Member

Verizon is high for a comparable service

I've been with Sprint for about 10 years now and have thought about a switch to Verizon, but the cost difference for the same level of service was not worth it. I used to have a Verizon phone for work and the coverage was equal in this area. I worked for Verizon Wireless long ago in customer service and remember in training I was asked not to keep bringing up what a rip off their prices were in comparison to Sprint.
I pay $30/month on top of my voice plan for a 5GB of data/unlimted Text/MMS(my phone does not handle it so it is a moot point)/Blackberry service(if I had a Blackberry)/and navigation service. That seems to be reasonable for the service I am getting. Verizon could not offer me anything even close.
I am amazed that they continue to add customers when there are better options out there. Oh well I guess people went for the Iphone too, so there is no telling.

JB9
Stay Gold
Premium Member
join:2009-05-14

1 edit

JB9

Premium Member

Re: Verizon is high for a comparable service

VZW "Connect" plan is the same as the Sprint "anytime anymobile" plan - both w/ 450 minutes and the same $69.99 / month .. except on sprint you can call any mobile phone regardless of carrier and verzion is to verizon only
tmc8080
join:2004-04-24
Brooklyn, NY

1 recommendation

tmc8080

Member

one BETTER!

so, don't like it, dont' use it rears its head again..
I'll do one better.. I call for a TOTAL BOYCOTT of VERIZON WIRELESS --- UNTIL THEY BEGIN LOWERING THEIR PRICES-- ACROSS THE BOARD!!

Capitalism is a TWO WAY STREET.. consumers don't have to spend money.. that's right.. so, when your contract's up cancel, if your out of contract, cancel (EVEN IF THEY OFFER YOU DISCOUNTS, CANCEL!!).. if your thinking about subscribing, move on.. even take prepaid wireless under another carrier..

Taking money out of the carrier's pocket works the best to change their behavior, it works even better if consumers do it en-masse! Just the same way if MILLIONS of loyal Apple customers began buying other brands of Ipods.. Apple's not that stupid to say, goodbye and goodluck-- they'd DO something about it!
srvctec
join:2007-04-19
Salina, KS

srvctec

Member

Re: one BETTER!

True, but getting everyone or enough people to go along is always the problem with a boycott of any kind.
Lenagainster
join:2005-01-07
Silver Spring, MD

Lenagainster

Member

go to the Connect Plan

Verizon is just pushing everyone towards the Connect or Premium plans.
With those plans, you get a lot more features (unlimited texting, data, IM, Mobile Email, Nav on the Premium plan) for a little more money. And the cheaper stuff is no longer available.

They used to have plans like 60 minutes of calling for $20. Nothing else. Those are gone, too.

You're just getting more stuff for more money, not less stuff for more money.
patcat88
join:2002-04-05
Jamaica, NY

patcat88

Member

Re: go to the Connect Plan

said by Lenagainster:

They used to have plans like 60 minutes of calling for $20. Nothing else. Those are gone, too.

You're just getting more stuff for more money, not less stuff for more money.
Sounds like the right and left hands are finally agreeing on something. VZW and VZ both are on the same page finally. VZ positions FIOS as a premium product, and charges premium prices, same thing with VZW. For VZ and VZW to compete on price would be a race to the bottom.

i1me2ao
Premium Member
join:2001-03-03
TEXAS

i1me2ao

Premium Member

lg titanium

is the phone i use and do not have all the over priced features. i have fat hands and need a large keyboard to type with. also i am dam near blind and enjoy the larger screen. this reminds me of ford saying oh you want a mustang it must be a cobra because that is all we are allowed to sale you..

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK

Premium Member

Solution: EMP Bomb

In selected markets
jfd15
join:2008-01-07
West Sacramento, CA

jfd15

Member

Re: Solution: EMP Bomb

said by KrK:

In selected markets
yeah, like wherever the CEO's of Verizon and AT+T reside...
nthach
join:2009-02-11

nthach

Member

Verizon==Comcast, well almost...

I see Verizon and Comcast as complements of each other. Both have restrictive user policies, both won't let you BYOE, and both are the most expensive providers in their fields.

VerizonisGod
@charter.com

VerizonisGod

Anon

Verizon might have a good "overall," network but.....


I swear some people haven't tried other carriers since 2003 but still abide by the fact that all the others except Verizon have zero coverage in every little location they go to ever.

I live in LA. All the carriers work well, more or less.... In my office there are a bunch of middle aged engineers who have the same bias... as smart as they are with routers and switches... they still are very dense and unwilling to try any other carrier because "they heard," all the other carriers suck. This is despite the fact that Verizon has poor RF inside. They just won't hear it otherwise.

Now I know everyone likes to think they have the best service, but Verizon's network is not always worth the extra $40 or $50 per month.

Gixxer
join:2008-08-27
St Catharines, ON

Gixxer

Member

Re: Verizon might have a good "overall," network but.....

So glad I have unlimited data/e-mail/im with Telus for $15 / month.

dunworkin
Premium Member
join:2006-12-18
Bellflower, CA

dunworkin

Premium Member

Re: Verizon might have a good "overall," network but.....

We're glad too.....
thorataz
join:2009-11-10
USA

thorataz

Member

Damn thats crazy.

My total Sprint charges are 65 a month. Unlitmited any mobile, text, pic and data. I use about 800MB per month. All providers make money on data

JohnNWPVNJMH
Premium Member
join:2007-03-26
Berkeley Heights, NJ

JohnNWPVNJMH

Premium Member

Re: Damn thats crazy.

said by thorataz :

My total Sprint charges are 65 a month. Unlitmited any mobile, text, pic and data. I use about 800MB per month. All providers make money on data
It will be a good time for Sprint to capitalize on the disgruntled VZW customers. With Sprints "Everything" plans and their new "Anytime Wireless to Any Wireless" .. given to all people that have Data plans ... VZW best realize that getting to greedy will certainly affect their bottom line when customers run away.