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Verizon Family Data Plans Coming Mid Year
Busy Trying to Figure Out How Not to Lose Money
by Karl Bode Tuesday 28-Feb-2012 tags: business · wireless · bandwidth · wireless
Both Verizon and AT&T last year hinted more than a few times that they'd finally be joining the modern age by offering family data plans. Ideally the bucket-o-bytes approach would, like voice minutes, work across different family accounts and more importantly across devices, meaning no more annoying additional individual subscriptions for your tablet, handheld game console, or other device. While AT&T did recently announce a price hike, family plans were nowhere to be found during recent earnings announcements.

Verizon seems closer to a launch, telling attendees (transcript, pdf) at the Deutsche Bank Media and Telecommunications Conference that family plans will be dropping very soon. Verizon CFO Fran Shammo told investors that the company has been slow on the idea because it's a "a very complex equation," and Verizon has wanted to make sure such plans would be "good for Verizon and...good for our customer." Shammo gave mid year as a vague launch window, starting with LTE users:

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"Now it's also important to realize that the day we launch this account billing, everybody won't be migrating to the account billing day one. This is going to be a long-term migration into where we want to get data plan sharing, but this will be more of a 4G play for us and I think it will be critical for us. And you'll see something launched--even Lowell alluded to it--you'll see something launched mid-year this year from us."

As it stands, Verizon makes plenty of money charging each individual member of a family an individual data plan for each device, with most of their allotments left unused. Verizon and AT&T pricing is very carefully crafted so that the least expensive option (usually around 200-300MB) is too little, but the next step up (usually 2-3 GB) is too much.

People clearly want pooled data if we're moving to per byte wireless. However, shifting away from the existing model, which is carefully designed to get everyone paying as much money as possible, has clearly confounded both companies. Both AT&T and Verizon will introduce new plans that try to give the impression of value, without eroding existing profits. In other words, expect oodles of caveats when these options finally arrive later this year.

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

Sell the low price point...

...and then burn them on the back side when they find out they have to move up to the really expensive plans or pay overages.
wheelbarrow

join:2010-01-06
USA
Reviews:
·Windstream

Yep..

To me, it just looks like another way for Verizon to eliminate grandfathered unlimited plans. It's almost a guarantee that they won't let you share unlimited data if you currently have it. I would expect their new family plans to cost just as much, if not more, than current per line pricing.

MovieLover76

join:2009-09-11
kudos:1

Re: Yep..

Yep, I certainly won't be going to family plans for that very reason, of course it's fairly easy for me, only 2 people on my plan.

skuv

@rr.com

Well...

If they do like a phone plan now, and just charge the base $30 to the primary account and $5 or $10 per family member, they stand to make more money from me. As I have avoided smartphones for the rest of the family because I'd pay $30 each.

So they'd get money from me for phone upgrades as well as an extra $5 - $10 per phone per month to share the 5GB plan.

If it's any more than $10 per family member after the first $30, I will not consider it at all.

aannoonn

@optonline.net

Re: Well...

said by skuv :

So they'd get money from me for phone upgrades as well as an extra $5 - $10 per phone per month to share the 5GB plan.

The phones are subsidized, so Verizon loses money when you upgrade.

gigahurtz
Premium
join:2001-10-20
Palm Coast, FL

Re: Well...

said by aannoonn :

said by skuv :

So they'd get money from me for phone upgrades as well as an extra $5 - $10 per phone per month to share the 5GB plan.

The phones are subsidized, so Verizon loses money when you upgrade.

Yes, but they'll make it back as most smartphone users don't go back to a dumbphone once they've upgraded, which locks them into paying for data for as long as possible.

thegeek
Premium
join:2008-02-21
united state
kudos:1
Reviews:
·Suddenlink
·NPG Cable

Data Charge then Per Line Charge

I read somewhere a while back, likely here, that the plan was to have an overall data charge. And then a per line charge to access the data. So basically still per line charges. No matter what formula they use, one thing is for sure: The customer will get ass raped in the end.
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ

Re: Data Charge then Per Line Charge

said by thegeek:

I read somewhere a while back, likely here, that the plan was to have an overall data charge. And then a per line charge to access the data. So basically still per line charges. No matter what formula they use, one thing is for sure: The customer will get ass raped in the end.

Naturally, the customer is a second class citizen to their investors. Even though without the customer they would have no investors.
--
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thegeek
Premium
join:2008-02-21
united state
kudos:1

Re: Data Charge then Per Line Charge

considering most people treat high end smart phones and data plans as a necessity rather than an unneeded item that they just want i don't think the investors are worried too much about customer backlash.

cork1958
Cork
Premium
join:2000-02-26

Re: Data Charge then Per Line Charge

said by thegeek:

considering most people treat high end smart phones and data plans as a necessity rather than an unneeded item that they just want i don't think the investors are worried too much about customer backlash.

Mostly, only a**holes and idiots treat high end smart phones and data plans as a necessity!!

I'm willing to be half of the people with those phones and plans, don't have a clue how to use 90% of the features included!

I know I spend almost as much time showing people how to use the basic features of some of these phones as I do fixing their stupid computers, that they also barely know how to use!!

But, hey! We MUST keep up with the Jones'
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BiggA

join:2005-11-23
EARTH

Re: Data Charge then Per Line Charge

Smartphones are becoming critical for a lot of people, but yes, they should learn how the heck to actually use them.
BiggA

join:2005-11-23
EARTH
Reviews:
·Comcast
My guess is $10/mo/line plus the cost of the data. It will probably work out well for families that don't use very much data overall, and it probably will be impractical for heavy users. I'm guessing they want to push data usage down by incenting people on cost.

thegeek
Premium
join:2008-02-21
united state
kudos:1
Reviews:
·Suddenlink
·NPG Cable

Re: Data Charge then Per Line Charge

the problem with a per line charge and then the cost of data is that it really isn't a family data plan then. it should be just a single charge regardless of the number of devices. that is how voice minutes should work too. but they don't so data likely won't work that way either.
BiggA

join:2005-11-23
EARTH

Re: Data Charge then Per Line Charge

They need a way to recover some of the subsidies on smart devices.
mogamer

join:2011-04-20
Royal Oak, MI

Re: Data Charge then Per Line Charge

said by BiggA:

They need a way to recover some of the subsidies on smart devices.

Let me bring in my own device(s) and they don't have to worry about subsidizing me.
AndyDufresne
Premium
join:2010-10-30

3 smartphones + 1 mifi

I have 2 phones on unlimited-1 on 4 GB and the MIFI at 5GB.My bill with corp. discount is still $200.00+. I really don't think VZ is going to do anything that is going to lower my data portion of bill.

lr85

@myvzw.com

Re: 3 smartphones + 1 mifi

That's better than my plan which is 3 phones and only 1 is a smartphone plis hot spot and its 190 something!

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

Still a whole lot of nothing

No exact date, no pricing info, no info on how much data you get. Wake me up when I actually have something to go on.

IowaCowboy
Premium
join:2010-10-16
Indian Orchard, MA
Reviews:
·Verizon Broadban..
·Comcast
·AT&T Wireless Br..
·Verizon Wireless..

1 iPhone 4 & 4G USB modem

I have an iPhone 4 with grandfathered unlimited data/900 minutes/250 texts and a Pantech UML 290L USB modem with 5GB. My total bill runs about $150 per month. My mother has AT&T which is in her name and she gets a discount because she works for the local school district. My Verizon account is in my name. It would be nice if I could split the data between the iPhone and the USB modem but I'd rather keep unlimited data on the phone. It would be nice if I could have kept the $35/3GB plan when I went 4G but they would not allow it.
--
All of my CPE (including my EMTA) is customer owned. The only Comcast owned equipment in my house is the CableCards in the two TiVO boxes I own.

OSUGoose

join:2007-12-27
Columbus, OH
Reviews:
·Insight Communic..

If they do this right

They will get a lot more subs.

Senario: 10GB on 4G, 5GB on 3G, shared, so 2 iPhones and a DumbPhone share the pool of data. (Assuming the next iPhone has VZW LTE on it, then for a extra 10/month u can enable hotspot on the iPhones so you can use ur laptop while in the doctors office, ect. Price it at 50/month for the pool.
podstolom

join:2010-01-25
Wichita, KS

Shared Data Plans...

This is disgusting. While Verizon fritzes around for a year fiddling with a "complex equation", European companies have been DOING data shares for years. For example, in Sweden, one company offers for $60US equivalent, 20 Gig /month, tethering, and 2 or more SIMs per line. No separate lines per device, no separate plans for modems, notebooks, tablets, etc. Voice and SMS are included in the plan too, though Europeans do pay a per call, per minute and per SMS Sent, though recieved calls & texts are free.

Only in America can something inherently simple like this be made complicated all for the sole purpose of placating investors. As for me, I decided to kill both my embedded 3G modem in my notebook and tethering on my Droid, because I coulen't justify these extra feature and line costs, with Wi-Fi so prevalent everywhere.

Everyone has an opinion as to what is too expensive or not economically justifiable, and verizon doesn't compete against the Swedes, but looking at metrics such as the one above, shows in objective hard numbers, just how badly the American comsumer is getting ripped off. And for what? Ever increasing CEO bonuses and investor dividends. Screw that.
tmc8080

join:2004-04-24
Brooklyn, NY

horse race with AT&T

maybe Verizon will fight with AT&T by offering larger "BUCKETS" of bytes on their plans. so-far it's been a race to see how much they can raise prices and reduce the value to the consumer.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service

Re: horse race with AT&T

said by tmc8080:

maybe Verizon will fight with AT&T by offering larger "BUCKETS" of bytes on their plans.

LOL. No disrespect intended, but yeah, right

so-far it's been a race to see how much they can raise prices and reduce the value to the consumer.

Can I get an amen!
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

Re: horse race with AT&T

what I was hinting at is the new alliance between Comcast and Verizon could motivate AT&T to take the first step IF they see their margins cut by losing wireline subscribers and/or wireless subscribers. there's only so much profit loss they could withstand before they'd have to make BOLD changes to their offerings.

who could have forseen it just *MIGHT* be an exploding merger attempt with Tmobile (voicestream) and an alliance between Verizon (Bell Atlantic) 15 years ago.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service

Re: horse race with AT&T

Problem is with all the fee hikes and the price increases and the new caps and overages etc I'm sure there will be any profit losses, other then the obvious one caused by the failure of the T-Mobile merger (which is just a temporary blip to them.)

I'm thinking the big 2 are learning there really isn't enough competition to keep them in check, they are feeling the Sprint and T-Mo don't really matter that much and the others (MetroPCS, Celluar One, etc) are all bit players that they ignore.

They'd love Sprint to fail, and T-Mobile to give up. Then we'd really be truly screwed.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1

Verizon Unlimited

I am paying 152.xx right now for 2 phones with unlimited data, texting, but 700 min. I am going to try to keep it as long as possible
dave sz

join:2001-06-04
Carpentersville, IL
Reviews:
·AT&T Midwest

Re: Verizon Unlimited

said by Cheese:

I am paying 152.xx right now for 2 phones with unlimited data, texting, but 700 min. I am going to try to keep it as long as possible

Wait, you're happy with that price?
bcltoys

join:2008-07-21
Lost today

Keep what we have or

Will we be forced to to these plan's.
apollo80

join:2002-01-31
Richmond, VA

Re: Keep what we have or

said by bcltoys:

Will we be forced to to these plan's.

If so, I will go back to phone and text only. A smartphone is a luxury to me, not a necessity.

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