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Verizon Makes New Plans Official
Fixes Broken Usage Calculator for Launch
by Karl Bode 10:50AM Thursday Jul 07 2011
As leaks had predicted for months, Verizon's new wireless data pricing for both EVDO and LTE smartphones went live today on the Verizon website. Users now have the choice of three data plans: 2GB of data use for $30 a month, 5GB of data use for $50 a month, or 10GB of data use for a whopping $80 a month. Overages for all of those plans will cost you a significant $10 per each additional gigabyte, and users will need to pay extra if they want to tether. Indeed, Verizon appears to be cracking down harder on unofficial tethering, convincing Google to block tethering apps from the Android Marketplace, while crippling mobile hotspot functionality on several handsets.

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As we've noted previously, users currently on unlimited data plans can have these plans grandfathered for now, but it's unlikely this altruism lasts for long. Of interesting note given Verizon's historically dubious math skills, the company's online calculator intended to making understanding usage meters easier was actually wrong and drastically underestimating video consumption, so they've fixed it for today's announcement.

As it turns out, Verizon's usage calculator was significantly underestimating the amount of bandwidth consumed by video streaming:
quote:
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Today, before the fix, the equation looks pretty different in the calculator:

1 hour/ day low res =1.35 GB/month

After the fix it will transform into:

1hour/day low res = 5.86 gigabytes /month

Before the correction high-res streaming is clocked at 1hour/day = 10.43 GB

Tomorrow, 1 hour/day= 11.72 GB.
In other words, if you want to watch more than a few films per month on Verizon's supposedly cutting-edge LTE network, you may need to consider a second mortgage. Users meanwhile are realizing just what these caps mean in terms of modern everyday use, with a popular Twitter retweet reminding users this week that just an hour a day of Pandora eats 1 GB a month, or 50% of Verizon's new basic plan. While many of today's users still consume less than 1 GB a month, that's going to change drastically as users increasingly use smartphones and mobile data plans in much the same way they use their home connections and PCs. Like AT&T, Verizon's aiming to cash in fiercely on those users of tomorrow.


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IPPlanMan
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