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Consumer Groups: Verizon's New Data Pricing is Awful
Surprise! Duopoly Power Means High Prices
by Karl Bode Wednesday 13-Jun-2012 tags: prices · competition · business · wireless · alternatives · bandwidth · consumers · wireless
Yesterday Verizon finally unveiled their new shared data pricing, and the results were somewhat underwhelming. While the company's new plans offer unlimited text and SMS (just as usage of both begins to plummet), the plans require steep individual device connection fees before users even begin having to pay a significant amount per gigabyte. Not too surprisingly, consumer groups aren't too impressed with the new offer, and say it's a prime example of duopoly power run amok.

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Public Knowledge notes that it took Verizon all of a year to go from offering unlimited data for $30, to charging $50 per gigabyte. "This is just the latest example of wireless carriers increasing costs for consumers under the pretext of doing them a favor," notes the group. "There does not appear to be very much competitive pressure keeping carriers from raising prices for customers – which is part of the reason that we are against even more consolidation in the market."

Free Press was equally unenthusiastic. "The main goal of these new plans is to get consumers sharing more of their money with Verizon," notes Free Press Policy Director Matt Wood. "These tactics show just how uncompetitive the market for wireless services has become, as Verizon and AT&T gobble up spectrum, tie more products together and lock customers into bad deals."

"Just when people have started using fewer voice minutes and text messages, Verizon's response is to make them buy unlimited voice and texts. You may want less, but they make you buy more. That's exactly the opposite of how a functioning market should work."

Granted AT&T, who traditionally is a even more -- "creative" and aggressive when it comes to nickel and diming users, has yet to even unveil their own shared data pricing plans.

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tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:3

1 edit

Raise your hand...

...if you were stupid enough to believe this was ever intended for user benefit.
The only reason "unlimited" was ever offered was to let you develop a habit.

atuarre
Here come the drums
Premium
join:2004-02-14
College Station, TX

Re: Raise your hand...

All they (Verizon) needs now is Wanda Sykes to pop in and say, "Surprise! We got you, dumbass!"
openbox9
Premium
join:2004-01-26
japan
kudos:2
That's why I'm scratching my head. What profitable company wants to reduce revenue?
OwlSaver
OwlSaver
Premium
join:2005-01-30
Berwyn, PA

Re: Raise your hand...

Companies goals are profits, not revenue. Companies would rather make 10,000,000 on 11,000,000 in Revenue than 5,000,000 on 20,000,000 in revenue. If Verizon had provided a benefit for me to sign up all four family members, I would have gone for it. This costs the same gives us unlimited voice and shared data. Not enough for me to bite. So no new revenue or profits for Verizon.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: Raise your hand...

Top and bottom lines are both important. Grow both and you're doing well.

BF69
Premium
join:2004-07-28
Camden, TN

Re: Raise your hand...

said by openbox9:

Top and bottom lines are both important. Grow both and you're doing well.

Going by the outrage if just a small % of those pissed off by this leave I suspect both revenue and profits for Verizon will fall and they would deserve that.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: Raise your hand...

said by BF69:

Going by the outrage if just a small % of those pissed off by this leave

We'll see. I don't expect a mass exodus as I don't believe most consumers will see that big of a change with their bills come July.

DataRiker
Premium
join:2002-05-19
00000

Re: Raise your hand...

Straight talk is looking better and better all the time. The age of throwing money at phones is over.
ExoticFish

join:2008-08-31
Stuarts Draft, VA

Re: Raise your hand...

said by DataRiker:

Straight talk is looking better and better all the time. The age of throwing money at phones is over.

These new plans would cost me $80 extra over what I'm currently paying. I'm currently on unlimited with 2 smartphones and 3 dumb-phones.
--
»www.VAJeeps.com

BF69
Premium
join:2004-07-28
Camden, TN
said by openbox9:

said by BF69:

Going by the outrage if just a small % of those pissed off by this leave

We'll see. I don't expect a mass exodus as I don't believe most consumers will see that big of a change with their bills come July.

That's not the point. it's the point that the company is trying to fuck you over.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: Raise your hand...

No, the point is that people are arguing that VZ is changing the fee structure and that they're fed up with VZ's antics and will be walking once their contracts expire. I'm calling their bluff.

AnonFTW

@rr.com
It will take until contract renewal time for the exodus to occur. In other words, it will happen slowly. Everyone isn't magically up for contract renewal June 28th when this goes into effect.

I'm certainly exploring other options now, but my contract isn't up for another year.

LMGold

@myvzw.com
There is really nowhere to go, which is the point. When two companies control most of the market, they can turn the screws, secure in knowledge that at worst it'll piss of people. But it won't cost them business because AT&T will do something equally egregious.

SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Boston, MA
said by openbox9:

That's why I'm scratching my head. What profitable company wants to reduce revenue?

That's easy! Their going to minimize those losses by getting them via concessions from their employees!
NYC Girl
Premium
join:2007-02-04
Bronx, NY
Reviews:
·Optimum Voice
·VOIPo
·Optimum Online
·RoadRunner Cable
·Time Warner VOIP
said by tshirt:

...if you were stupid enough to believe this was ever intended for user benefit.
The only reason "unlimited" was ever offered was to let you develop a habit.

Lol!!! Gateway drug texting!!! I don't need unlimited texting as most of my friends are on iOS devices. I have the 1000 per month plan for 10.00 as there are times that an iOS IM "can only" be sent as a regular text message or if I am texting non iOS users.
patt2k

join:2009-01-16

lol

While the company's new plans offer unlimited text and SMS

lol.
en103

join:2011-05-02

Re: lol

Only benefit - cord cutting.
BiggA

join:2005-11-23
EARTH
I know, who woulda thunk'ed it?

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by patt2k:

While the company's new plans offer unlimited text and SMS

lol.

Which costs the company NOTHING to provide.
these plans are 100% PURE PROFIT!
BiggA

join:2005-11-23
EARTH

Re: lol

100% pure profit? 55,000 towers with 746mhz LTE and most with gig fiber IP connectivity are free to provide?

Xioden
Premium
join:2008-06-10
Monticello, NY
kudos:1

Re: lol

That one tower you mention, could handle all the texts being sent by everyone in the world.

Texting really does cost next to nothing to provide. It costs fractions of a cent to actually send a text message, but if you don't have a texting plan it costs about 20 cents to send a single text message. So 100% pure profit might be exaggerating, but 98-99% pure profit would be pretty much right on the nose.
BiggA

join:2005-11-23
EARTH

Re: lol

The network still has to be there.

BF69
Premium
join:2004-07-28
Camden, TN

Maybe enough bad press

will cause Verizon to change things up a bit. It has happened before.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: Maybe enough bad press

Change to what? Increasing revenue in the "data world" means that consumers will pay more for data one way or another. This evolution has been in the making for several years and I don't see VZ adjusting rudder now....at least not to favor consumers.

BF69
Premium
join:2004-07-28
Camden, TN

Re: Maybe enough bad press

said by openbox9:

Change to what? Increasing revenue in the "data world" means that consumers will pay more for data one way or another. This evolution has been in the making for several years and I don't see VZ adjusting rudder now....at least not to favor consumers.

Really? It was 6 months ago Verizon was going to add a $2 fee to pay your bill then people complained and they got rid of that idea rather quickly. Last year at&t wireless changed it's caps and pricing and people complained and at&t made adjustments within days. Comcast has had to raise it caps because people have been complaining about them not counting their own stuff against their caps. A few years ago TWC was going to have caps of between 5-40 GB and people complain and they abandoned that idea rather quickly.

So enough consumer outrage and companies WILL listen.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: Maybe enough bad press

Yes, really. This is a paradigm shift in billing structure, not a $2 fee. The numbers may fluctuate a little as VZ applies a few tweaks here and there, but I wouldn't bet on any significant changes.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
Reviews:
·Verizon FiOS
said by BF69:

said by openbox9:

Change to what? Increasing revenue in the "data world" means that consumers will pay more for data one way or another. This evolution has been in the making for several years and I don't see VZ adjusting rudder now....at least not to favor consumers.

Really? It was 6 months ago Verizon was going to add a $2 fee to pay your bill then people complained and they got rid of that idea rather quickly. Last year at&t wireless changed it's caps and pricing and people complained and at&t made adjustments within days. Comcast has had to raise it caps because people have been complaining about them not counting their own stuff against their caps. A few years ago TWC was going to have caps of between 5-40 GB and people complain and they abandoned that idea rather quickly.

So enough consumer outrage and companies WILL listen.

maybe that is what Verizon plans? And after a few weeks they lower it to what they were originally planning. Making them look like they are giving the consumer a better deal by lower the costs. Which would still be higher than they are now.

jseymour

join:2009-12-11
Waterford, MI

"Duopoly Power?"

I count four (4) wireless carriers with a national footprint. Admittedly, VZ and "AT&T" have the most coverage, by far, but many people somehow manage to get by with Sprint or T-Mobile. Some even manage with Metro PCS.

Furthermore: How many of those with "smart" phones and data plans actually need them? One could argue phone service is a "need." One could easily argue, in this day-and-age, that Internet service at a business is a "need." One might even be able to argue that home Internet connectivity is a "need." But mobile broadband? Not so much, for most people, I'm thinking.

Carriers are bumping the prices for data because so many people have addicted themselves to being wired to The Machine 24x7x52. Carriers know that people may whine and people may groan and people may gnash their teeth and howl at the moon, but they'll continue paying it--just like they have for subscription TV all these years. So-called "consumer groups" will raise the hue and cry and Certain Legislative Representatives may issue vague threats about "having to do something about this," but little will change--except prices, which will continue to climb.

And people will continue paying it.

You want to bring a halt to excessively high mobile costs? Stop paying for it. Easy.
rradina

join:2000-08-08
Chesterfield, MO

Re: "Duopoly Power?"

I think it depends on what "phone service" is. If folks are using Skype or FaceTime for voice and various non-SMS apps to send text messages, then that's all over the data connection.

I think the carriers sense that change is afoot and before long, very little voice and SMS will be used.

At some point, "phone service" will be "data service".
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: "Duopoly Power?"

said by rradina:

At some point, "phone service" will be "data service".

I've said it before...the new "MB" is the old "minute"

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:3
Reviews:
·Comcast
So the only question is why charge different amounts for different devices?
each plan device should have the same monthly base fee, plus however much data it can suck up.
But this is marketing, fancy smartphone users accept that their 'exclusive' phone SHOULD cost more, and so should service.

djrobx

join:2000-05-31
Valencia, CA
kudos:1
Reviews:
·VOIPo
·Verizon Wireless..
·RoadRunner Cable
·AT&T U-Verse

Re: "Duopoly Power?"

said by tshirt:

So the only question is why charge different amounts for different devices?
each plan device should have the same monthly base fee, plus however much data it can suck up.
But this is marketing, fancy smartphone users accept that their 'exclusive' phone SHOULD cost more, and so should service.

Non-phones don't need the unlimited talk & text. Smartphones need a higher price for the larger subsidy.

I'm not sure what the $20 laptop base charge is about. I have seen cell company subsidized laptops before, maybe it's meant to apply to those.

I can wrap my head around the base charges. The data is completely outrageous though. $50 for 1GB? We should be getting 5GB of shared data for that price.
--
AT&T U-Hearse - RIP Unlimited Internet 1995-2011
Rethink Billable.

tshirt
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join:2004-07-11
Snohomish, WA
kudos:3
Reviews:
·Comcast

2 edits

Re: "Duopoly Power?"

Some tablets are just oversized phones, and can handle text or at least VoIP/talk.
and this isn't about the phone price.

The data high charge represents the really cost of maintaining and adding cells/towers not just in the city but along highways which may have a couple high use periods, but then sit at less than capacity the rest of the time.

And yes there is a high margin, like any hot product, with high spoilage. (you are paying for the time/data transmission they can't sell too)

AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1

Re: "Duopoly Power?"

said by tshirt:

The data high charge represents the really cost of maintaining and adding cells/towers not just in the city but along highways which may have a couple high use periods, but then sit at less than capacity the rest of the time.... (you are paying for the time/data transmission they can't sell too)

whether the towers are at 1% or 100% there is no incremental cost. Of course there is a cost if the tower is at 120-150%, but even this should be built into the base fee.
--
--Standard disclaimers apply.--
The preceding posting is null and void in Arizona and any other jurisdiction where prohibited by law.

tshirt
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join:2004-07-11
Snohomish, WA
kudos:3
Reviews:
·Comcast

Re: "Duopoly Power?"

said by AVD:

said by tshirt:

The data high charge represents the really cost of maintaining and adding cells/towers not just in the city but along highways which may have a couple high use periods, but then sit at less than capacity the rest of the time.... (you are paying for the time/data transmission they can't sell too)

whether the towers are at 1% or 100% there is no incremental cost. Of course there is a cost if the tower is at 120-150%, but even this should be built into the base fee.

look at it this way.
If the tower cost 100,000 unit and it brings in 10 unit of traffic per hour during peak times, but off peak it only generates 1 unit.

Then the tower that is busy 24/7 gets paid off, much faster than the tower that is busy 4 hours a day on weekdays only.

worse, the technology equipment needs upgrades every few years, so you have a limited number of hours to recoup the investment and earn a profit.
So even if there is little direct hourly cost, every hour has a value that must be somehow be recovered during the limited asset lifetime.

tshirt
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join:2004-07-11
Snohomish, WA
kudos:3
Reviews:
·Comcast
said by rradina :

]At some point, "phone service" will be "data service".

And logically this is a step toward "bring your own device" to any carrier and pay a (relatively) small monthly account fee ($10-25) for each device and a high rate for data useage.

Swordfish II
Watching A Dream
Premium
join:2002-05-12
Cloud 9
Do you "need" to drive a car to work?

There are a lot of things that aren't "needed" but they are nice to have, and it doesn't mean people should be extorted to use them.

Something else that sticks in my craw is VZ getting rid of unlimited data. For some reason it is "a-ok" for VZ to break a contract and charge me more, but if I wanted to break a contract I would have to pay an ETF.

Your analogy about tv is completely wrong, there were actually several articles about "cable cutters" on here even.
--
I'm not going there to die. I'm going there to see if i really am alive.

jseymour

join:2009-12-11
Waterford, MI

Re: "Duopoly Power?"

said by Swordfish II:

Do you "need" to drive a car to work?

In fact: I do. I live in a rural-ish area. There is absolutely no mass transit at all. None. Nada. Zip.

But your point is made, nonetheless, as I chose to live where I live and work where I work. So I must bear the expenses attendant to my choices. I do not complain about it. I do not protest to the "news" media about it.

said by Swordfish II:

There are a lot of things that aren't "needed" but they are nice to have,

If they're merely "nice to have," then they are not necessities, therefor such expenditures are discretionary, therefor...

said by Swordfish II:

... and it doesn't mean people should be extorted to use them.

One can hardly be "extorted" when the expenditure is discretionary.

said by Swordfish II:

Your analogy about tv is completely wrong, there were actually several articles about "cable cutters" on here even.

My analogy is quite close. (No analogy is 100% correct.) The "cable cutters" are cutting cable in favour of OTA TV, now that digital TV arrived, and content delivery over broadband. Before then they just had to have their subscription TV (can't live w/o those TV shows, you know), and the subscription TV services gouged them for it. The ones still on the cord are still being gouged, and still complaining about it.

My point is: If it's discretionary: Either pay the price or stop buying it. Paying for a non-necessity and then complaining about the cost is lame. There are many things I'd like to have. Many, many things. They are either beyond my means or cost more than I can justify, so I simply do not buy them.

Mobile data, for the vast majority of its users, is almost certainly a non-necessity.
rradina

join:2000-08-08
Chesterfield, MO

1 edit

Re: "Duopoly Power?"

I applaud you for not complaining about rural inequities. Many cry about not having broadband or various other "utilities" such as public water and sewer. Many even cry, "the government should do something" (translation: divert urban tax revenues).

However, I must disagree regarding the data plan comments. I'll bet most with a smart phone use maps and various apps that help them find things when they are out and about. While maps could be cached locally and some apps do that, the "free maps" that don't cost extra (such as the map app built into the iOS) require a data connection to function. Related to maps and exceptionally useful to every smart phone owner is live traffic and weather updates. Who, upon learning about these features, doesn't use them during the daily drive or various outdoor activities?

While I agree Facebook updates, chat programs, Facetime, Shazam/Soundhound, always available e-mail and scores of other "apps" that need data connections are perhaps not universally valuable to smart phone owners, most smart phone owners are using one or several of these apps and all require data connections.

I'd even go so far as to say that an extremely low percentage of smart phone users wouldn't notice if mobile data wasn't part of their package. It's just too integrated into the smart phone experience. So much so that a IMO, a smart phone is pretty limited without a data connection and I don't think you are saying most smartphone users don't need smartphones, right?

BF69
Premium
join:2004-07-28
Camden, TN
said by jseymour:

I count four (4) wireless carriers with a national footprint. Admittedly, VZ and "AT&T" have the most coverage, by far, but many people somehow manage to get by with Sprint or T-Mobile. Some even manage with Metro PCS.

I don't count even 4. Any company that doesn't see fit to even offer 2G within 40 miles if me doesn't get to count as having a "national footprint".

Furthermore: How many of those with "smart" phones and data plans actually need them? One could argue phone service is a "need."

Electricity isn't a "need" either we have an Amish community nearby that kind of prove that you can live just fine and healthy without it. So enough with something has to be a "need" otherwise companies can fuck you in the ass.

jseymour

join:2009-12-11
Waterford, MI

Re: "Duopoly Power?"

said by BF69:

Electricity isn't a "need" either we have an Amish community nearby that kind of prove that you can live just fine and healthy without it.

Let's go with your reductio ad absurdum argument for a moment, then: Ok, electricity isn't a "need." For heating our homes and our water we can use any number of alternative fuels, such as gas or wood. Of course: Unless you're going to go out and start drilling for your own or cutting down the neighbourhood trees, you're going to have to buy those, too.

Yeah, not a very good analogy, after all.

said by BF69:

So enough with something has to be a "need" otherwise companies can ...

So are Lotus, Ferrari, Mercedes-Benz, Rolls-Royce and the others screwing people by charging so much for their product?

Btw: Nice verbiage in a family forum

BF69
Premium
join:2004-07-28
Camden, TN

Re: "Duopoly Power?"

said by jseymour:

said by BF69:

Electricity isn't a "need" either we have an Amish community nearby that kind of prove that you can live just fine and healthy without it.

Let's go with your reductio ad absurdum argument for a moment, then: Ok, electricity isn't a "need." For heating our homes and our water we can use any number of alternative fuels, such as gas or wood. Of course: Unless you're going to go out and start drilling for your own or cutting down the neighbourhood trees, you're going to have to buy those, too.

Yeah, not a very good analogy, after all.

Do I have to actually go out and take pictures of REAL Amish people living without electricity indoor plumbing cars etc etc? because they DO exist and live just fine. I bet your great grandparents lived just fine without electricity too.
covfam

join:2012-03-05
Black River Falls, WI
Not to derail. but the amish example is bad. here in western wisconsin we have the 2nd largest amish community outside of pensylvania, and theyuse telephones, cars, vans, televisions, walmart, power tools all they want. they just make local community loopholes like giving thier neighbor money to purchase and own the vehicle or hire a shuttle/taxi to take them into town, they as a community usually have a community telephone or pay for a neighbor to have a public use telephone for them. look at the furniture sold by 9 out of 10 amish furniture shops. made by electrical power tools.

They use ALOT of modern amenities by paying others to own them for the express purpose of letting the amaish community use them but not personaly "own them"

SteelerRaw

@timet.com
said by BF69:

I don't count even 4. Any company that doesn't see fit to even offer 2G within 40 miles if me doesn't get to count as having a "national footprint".

Ok, 3 wireless carriers with a national footprint in your case.
axus

join:2001-06-18
Washington, DC
I agree with you. T-mobile and Sprint are still here, and still profitable as far as I know. I'm still paying T-mo $60/mo for unlimited data to everyone on the family plan.

So, why don't people switch? Half the reason is the ubiquity of Verizon/AT&T's signals. No matter how many competitors, they will probably hold that advantage. The other reason is exclusive phones and 2-year contracts.

The sad part is higher prices for Verizon + AT&T mean higher prices for Sprint/T-mobile. They have room to increase their rates and still be a "low" price alternative.

DC DSL
There's a reason I'm Command.
Premium
join:2000-07-30
Washington, DC
kudos:2
Reviews:
·Covad Communicat..
·Verizon Online DSL

They'll keep doing...

...stuff like this as long as people do nothing more than "vent their outrage" on the Internet. Put your damn phones and TV remotes down and actually DO something about it. Downgrade or cancel your service. Make your elected officials lives a living hell until they enact laws and regulations that force phone and cable companies to care about the consumer first and foremost. (Or get off your butt and vote their ignorant asses out of office and put in people who do listen to their constituents.) Assume personal responsibility for getting what you want and stop whining about how no one else is doing anything.
--
"Dance like the photo isn't being tagged; love like you've never been unfriended; and tweet like nobody is following."
jupiter837

join:2010-11-26
Golden, MS

It's just for show.

These new plans won't last long. Verizon knows they are crap and probably no one will sign up for them. But then they'll say, see no one wants shared plans, everyone is happy paying per device.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: It's just for show.

I don't expect these plans to change anytime soon and I imagine VZ will have a significant portion of its customer base on these new plans within 18 months.
hotshot187

join:2008-04-07
Webster, NY
kudos:1

Re: It's just for show.

They will change them next year in the summer like they have the last 2 years when they find out their losing customers because of it.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: It's just for show.

What significant structural changes have been made during the last two summers? Elimination of unmetered data plans didn't materially affect subs or churn. VZW hasn't been losing customers for the last two years and I doubt the situation will change.
sandman_1

join:2011-04-23
11111

Wow

quote:

...to charging $50 per gigabyte

Holy sweet jaysus!! Whew that is some expensive bits there.

I am so glad I went to prepaid and Cricket. I just pay $55/month and get unlimited talk, text, and data. Might not be 4G but who needs 4G when they put such low data caps on it. For most things I do on a phone like web browse and watch the occasional Youtube video, 3G seems to do fine.
Goldman

join:2002-06-21
Maumelle, AR

Re: Wow

Who needs 4G if you can only use it for 10 minutes/month?
sandman_1

join:2011-04-23
11111

Re: Wow

Yea that was my point too lol.
Skippy25

join:2000-09-13
Hazelwood, MO
If you get 4G then you will only use it for about 3 mins per month as it is faster and thus you have 7 more minutes a month to do something else like say call your mother, start washing your car or beginning that new bathroom project and complete it 7 minutes a month at a time.
IanR

join:2001-03-22
Madison, NJ

Next up higher FIOS charges

As a shareholder of Verizon I love these wireless price increases and the FIOS increases this weekend.
As a consumer I hate it.

See 14 replies to this post

jeff17

join:2000-12-11
US

Prices aren't high enough!

Charge what you can, if people don't want it they won't pay. No big deal. People who sell stuff on ebay want to make as big of a profit as they can. They surely don't let stuff go for near cost.

Rita's water ice: how much do you think a large swedish fish water ice really costs? It's just sugar and ice. Margin on that must be crazy - $.30 to make, sell for $4.50.
ShellMMG

join:2009-04-16
Grass Lake, MI

Cutting back

We have a family plan-4 dumbphones, unlimited texting for all, shared minutes, NO data usage. After my husband's company discount and added taxes/fees/padding we pay about $125 a month. It works for us. Oh, there are times we could use a bit of data but it's not a priority at all.

These new plans do exactly what I've been watching for - they're jacking the price of basic phone plans so high they want customers to say "it's only $10 more for a smartphone!" Indeed it is. And if we want unlimited texting, most of which is for family and close non-VZW friends, we'll be forced into a $70 a month plan. Right now that's pre-discount $59.99.

When we're forced off our plans and the kids are on their own, we're looking more and more at prepaid. VZW needs to rethink these really sick plans FAST. Their sole purpose is to drive customers into big plans they don't want, don't need and then charge them through the nose for data.
elefante72

join:2010-12-03
East Amherst, NY
Reviews:
·Time Warner Cable
·Verizon FiOS
·voip.ms

Re: Cutting back

Verizon (and AT&T to follow) have clearly made a decision to place feature phone users in the MVNO space because the margins aren't there, not ARPU AND the more they can show 2G/3G voice users not on their network, the faster they can get to VoLTE. Now keep in mind once that transition happens you will still get the same lame plan, except they will probably start charging you for VoLTE data and texting. The master plan. Charge more for a commodity. VoLTE is like landline -> VOIP (it cost them nothing and they charge $$$).

You can take said phones and activate them on Pageplus. Depending upon your usage it is probably cheaper to stay on PAYG and buy regular pins and if you have enough text usage go for the $11 plan (2000 texts). If you have teens and they go wild, $15 gives you unlimited texts. If you buy the $80 pins voice is only 0.04/minute and you can use it for the text deduction at the same time, and for casual web (WAP and the like). By buying the $80 card, it will last one year, so you will only have to buy new cards when you need them which is WAY more economical then a contract with a use/lose mentality. If you have a user w/ high voice and text, there are plans for that, just for that phone.

So take theoretical 300 min/user/month (like VM $35 plan)

300 min = $12 (0.04)
Power text (2000) -> $11

$23*4 = $92 (and if you use 5% disc ) = $87.40 (no taxes)

So right there this is a 50% savings.

A good example is my brother. He was on verizon family plan, 2 feature phones 450 min which ran him $59/month and he had some kyocera phone that cost verizon nothing. Termination fee was $175 (which is way more than the phone cost). So when I brought this up to him, he had 12 months left on a 2 year (verizon termination fee was $175 up until the day you die), so to get out would have been $350. In any case that is $708 for the year MINIMUM, and $350 to get out. Now I sat his wife down and told her, it was INSANE to use the cell phone when at home, because duh it was a sunk cost and "free". Ok, that cut out is $80 bills when she chatted in her living room. So the min oppy cost is $358 (so if he can do it for $358 for the year he is ahead). So he talks max 100 min a month, and neither text, OMG. So foolishly he spent the next 12 months on Verizon paralyzed to pay a termination fee and spend over $900 for the priv, much to Verizon's fancy. So when he got done, I said buy the $80 card and use as necessary. So he has been on PPC for 1 year, and he still has $55 left on the card ($25 spent FOR THE YEAR), and her's cost $120. So $145 for the YEAR versus $900, AND those unused $$$ carry over when he refills.

The gotcha is that there is no M2M so air time is air time, but if you integrate this with google voice (like I do) you can simultaneously ring a land line and cell. If you pick up landline, no incoming cost. It took me 5 minutes to educate my wife on this.

If you happen to have a heavy voice user/text $30 gets you 100MB/1200min/3000 texts.

Also if your needs change, you can change the plan every month if you want--you are not locked in.

If you have someone that wants more data, then put them on VM for $35 and let them go to town.

If there are no family plans, you can maximize EACH line and do what's best for you. Since there is no M2M you are free to do as you wish.

Also, if you do get a mild smartphone (used off of ebay/cl of course), you can dispense w/ the text portion and just PAYG for data which is much cheaper than the text plans--but you need to watch anything heavy. That would be very dangerous for kids...

Eddy120876

join:2009-02-16
Bronx, NY

LOL at the Data you get for that price

Everyday i keep laughing at this insane practices from our beloved telcos /s . They keep thinking "hey lets charge then more and give then less and they will stay with us". Thank God for the prepaid world is giving then some revenue but is giving their main money maker a black eye. No wonder Europe and some asian countries laugh at us when it comes to cell and internet service, this is just an example as to why.

slimmy

@cableone.net

Thanks corperate america

Here hook up 10 mobile internet devices and stay under 10gig? what the hell!!! Nothing wrong with bending over the consumer, because corporate America can.

Must be taking lessons from cableone. They have a 50mb download plan with a 50gig cap then overages.

Thanks to these companies america is going to a$$ backwards!

brian
Premium
join:2002-05-02
Lake Forest, CA
Reviews:
·DSL EXTREME

sure is

We currently pay around $215/month for 5 phones. Two smartphones with unlimited data, 1 smartphone with 4GB, and two dumb phones with no data plan. Under the new structure we'd be paying at LEAST $230/month before taxes. Their calculator recommends the 6GB plan @ $260. We're using close to 2GB of data now, but we just upgraded the two unlimited smartphones to LTE devices and I expect to be using more data.

Good news, I guess, is that all but one of the lines were upgraded (with new 2 year contracts) in the last few months. The fifth (my mother-in-law's) is eligible for an upgrade, but we're expecting her line will be leaving our plan. So, we're good on our current plan/contracts until 2014. Hopefully things look better at that point.
--
flickr gallery | photo blog (rarely updated) | play mafia!

pende_tim
Premium
join:2004-01-04
Andover, NJ
Reviews:
·ProLog
·Verizon Online DSL
·voip.ms

Re: sure is

It will be interesting to see if you can remove the MIL without triggering a contract "redo" forcing you into the new plan structure. I hope you are successful as I have a family member who will be moving to her husbands plan in November. Currently I have 2 smart phones and a dumb phone on a unlimited data 1400 minute family share.
--
The difference between genius and stupidity is that genius has its limits.

brian
Premium
join:2002-05-02
Lake Forest, CA
Reviews:
·DSL EXTREME

Re: sure is

Her leaving shouldn't have any effect on the contract we just extended.

Conversely, I don't see how one line on a family plan could require essentially voiding the existing contracts and pricing for the other lines and and a transition to the new pricing structure. I can't see anywhere that it says what triggers a move to the new pricing other than "customers who may wish to move to the new plans".
--
flickr gallery | photo blog (rarely updated) | play mafia!
UncleDirtNap

join:2006-08-26
Pittsburgh, PA

Well it looks like Verizon ...

... Made the decision for me as to whether to keep the two smart phones that are currently on my family share plan or scrap them when it's time to renew.

This new plan represents a HUGE increase in the cost of maintain three phones on a single plan and I won't even consider keeping them if these are indeed the numbers.

Lived most of my life without a smart phone will do just fine without them again.
Markie

join:2003-07-26
Kalispell, MT

Karl, Seriously?

You simply call this "underwhelming" when your favored carrier does something so ridiculous, then you still take the last paragraph to make a jab at AT&T. I'm not stupid, I'm not looking forward to seeing AT&T's new plans either. But right now, AT&T is a much better value than Verizon and you should be calling Verizon out a lot stronger than this - and not taking the last sentence to jab at AT&T for no reason (yet, trust me, I know they'll almost certainly be giving us a reason here soon).

Also, Verizon ended their long-standing practice of grandfathering old plans. What Verizon's done here is simply off-the-wall absurd. Call them out on it, don't take it as a chance to make a (thus far unjustified) stab at AT&T.

AT&T and Verizon are both just companies looking the most profit, AT&T isn't somehow more evil or less evil. In my experience AT&T has much better customer service. And where I live (western Montana), their coverage and network speeds are much better. Call both out when they deserve it.

And that's my biggest fear. Verizon's (undeserved in my opinion) excellent reputation will give them a free pass on this one, and establish these ridiculous rates as the market norm and drag up everyone's pricing on something that should, in a natural market, be dropping in cost now that the infrastructure is paid for.

djrobx

join:2000-05-31
Valencia, CA
kudos:1
Reviews:
·VOIPo
·Verizon Wireless..
·RoadRunner Cable
·AT&T U-Verse

Re: Karl, Seriously?

Not making excuses for this horrible price plan, but the infrastructure isn't paid for. Verizon's busy deploying new LTE towers everywhere. They desperately need it too, their 3G network is so saturated it's nearly unusable in my LA suburb.

I feel pretty strongly that they're going to need to make adjustments or else lose customers. These prices are just completely out of line - I get 2GB/month for $30 on my Verizon LTE iPad. Reading this structure, that would cost me $60 for 1GB ($10 tablet + $50 / 1gb). Paying double for half the data? Really?
--
AT&T U-Hearse - RIP Unlimited Internet 1995-2011
Rethink Billable.

BF69
Premium
join:2004-07-28
Camden, TN

Re: Karl, Seriously?

said by djrobx:

Not making excuses for this horrible price plan, but the infrastructure isn't paid for. Verizon's busy deploying new LTE towers everywhere. They desperately need it too, their 3G network is so saturated it's nearly unusable in my LA suburb.

which is why these plans don't make sense. If the goal is to get people off of 3G phones and onto 4G phones these plans do the opposite. Plenty of people now plan on NOT upgrading. In other words keep using 3G phones and not move up to 4G. Thus keep saturating 3G while 4G remain basically deserted. Sending billions on 4G upgrades NO ONE will be using because of these stupid plans. I imagine 4G phone makers will be pissed at Verizon too when they see a reduction in phones being bought.
Markie

join:2003-07-26
Kalispell, MT
There are cheaper data-only plans. You'd actually be at $40 for 4 GB ($30 for 4 GB shared data and $10 for the tablet)
BC

join:2012-07-15
I've read previously, that Verizon has approximately 55,000 cell towers. At a generous estimate, on average, of $140,000 each to construct, that would amount to $7.7 billion.
Verizon's 2012 1st quarter revenues for WIRELESS DATA alone were $6.6 billion...
Now, I could be off in left field, but I think the infrastructure is paid for.

verizonshare

@aol.com

verizon's share your wallet plan

a Facebook page for everyone who hates Verizon's new share everything plan

»www.facebook.com/VerizonShareYourWalletPlan
WHT

join:2010-03-26
Rosston, TX
kudos:5

how a functioning market should work?

There is no such thing as a functioning market, free enterprise, capitalism, or law of supply and demand.

It's all about the short-term investor getting their quarterly profit.

Companies do not sell tangible products, like a loaf of bread. *YOU* are the product. The more you are manipulated, the more the short-term investor makes.

gballer

@reyrey.net

Excellent Plan!!

Offer unlimited data for a fairly cheap price..Get everyone use to using unlimited data and then

JACK THE PRICES UP!!

troy201

@newsouth.net

Pre-Paid

Well so far my Straight- talk plan looks better and better. For 48.31 a month it works for me. I hope the plan itself lasts a long time.

somebodeez
Premium,MVM
join:2001-09-24
here

Sorry but I'm confused - Question

My cell is a "dumb" phone. Currently, I only use it to make/receive phone calls (gasp!) when I am away from home. I also have text blocked. I don't use my cell often enough to justify the extra cost for texting. With this new pricing scheme, does this mean that unlimited texting will now be included in my existing plan at no additional charge?

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