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40% Prefer Carrier Switch to Shared Data Plans
AT&T, Verizon Have Some Marketing Work to Do
by Karl Bode 09:24AM Tuesday Sep 11 2012
If you've tried to explain AT&T and Verizon's new shared data plans to relatives, you know it's not always a particularly-easy task, especially given the high number of people who studies show don't even know what a gigabyte is. New research by Parks and Associates shows that confusion over these new plans, combined with T-Mobile and Sprint's offer of unlimited data options, truly has the potential to increase churn at both AT&T and Verizon.

Parks calls results of a recent survey "not particularly encouraging" for shared data plans, with 40% preferring to switch carriers than switch to shared data:
40 percent of mobile phone users surveyed would rather switch mobile carriers than be forced to use a shared data plan, while only 11 percent would switch providers in order to get a shared data plan. In addition, 38 percent of survey respondents said they would voluntarily adopt a shared data plan but not switch providers for it, while 10 percent would choose such a plan if doing so were the only way they could remain with their current provider.
On a positive note for AT&T and Verizon, Parks goes on to argue that the problem may be one of "education" (read: marketing), with customer disdain for such plans being reduced by improved advertising campaigns and information.

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Waterford, MI

2 recommendations

reply to 88615298

Re: Well Yea...

said by 88615298:

let's have fun with math.

Old pricing 450 minute, unlimited texting, $30 data plan for 2 GB. TOTAL $90

Share Everything 2 GB plan $100

price difference $10 . TA DA!

That's just slightly disingenuous. Not long ago a minimal plan was:

450 minutes + 250 text messages + unlimited data was $45 + $5 + $30 = $80.

Now a minimal plan is $100.

Price difference: An additional 25%. TAH DAH!