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Verizon: No Plan For Wireless Tiered Pricing (Yet)
Though it will likely happen after LTE launch...
by Karl Bode Monday 26-Jul-2010 tags: prices · business · wireless · alternatives · consumers
Tipped by XPAMD See Profile
An insider recently told Engadget that the company would be ditching unlimited wireless data pricing to shift to a billing model more like AT&T's -- as soon as next week. While that wouldn't be surprising given Verizon's repeated hints at their interest in such a model, Verizon has also repeatedly said such a change would likely come with the launch of LTE service. To hear Verizon CFO John Killian tell it, Verizon's not making any data plan price changes anytime soon. Said Killian on Verizon's recent conference call:

Our business is continuing to perform extremely well. You have not seen us rush out to make any kind of a change. We will continue to monitor the situation, of course, and look at opportunities that will say what is the best equation for us to drive long-term shareholder value, and we will be very focused on that. I cannot say enough, though, about the opportunity we see ahead given where we are today with smart phone penetration.

Killian then goes on to talk about 4G and note that tiered pricing will, as they've consistently said, likely arrive with LTE:

We have indicated in the past, as we move to an LTE world and LTE pricing, we will probably look very hard at tiered pricing, and that continues to be our thinking right now. So more to come on that. By the way, I should say that all of our efforts, all of our plans on getting LTE launched in the fourth quarter are on schedule.

The original Engadget rumor pegged July 29 as the date for the change, so we don't have long to wait. Verizon LTE isn't expected to launch anywhere until November 15.

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openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Why Karl?

"ditching unlimited wireless data pricing (which really isn't unlimited anyway)"
Smartphone data plans are unlimited.

Karl Bode
News Guy
join:2000-03-02
kudos:30

Re: Why Karl?

Whoops, thanks. Was thinking data card.

Romney2012
Defeat Obama 2012-Chg we can believe in
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USA
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1 edit

Key phrase by Verizon rep

We will continue to monitor the situation, of course, and look at opportunities that will say what is the best equation for us to drive long-term shareholder value
As for ALL companies that is the prime directive - as it should be.

Tiered pricing, and later hopefully bill-by-byte, will be the future of internet pricing for both wireless and landlines. Bill-by-byte is fairer and also would result in the best chance that capacity will be expanded whenever needed.
--
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Shack

join:2002-01-17
Bloomington, IN

Re: Key phrase by Verizon rep

Why would it drive expanding capacity, they can just charge greater rates for an artificially scare commodity. If anything unlimited data or large caps is more likely to drive expansion of infrastructure. Bil-by-byte will do nothing friendly for consumers and greatly slow innovation of internet services, I am sure the Cable co's would love stopping the competition of internet delivered video cold.
xenophon

join:2007-09-17

Re: Key phrase by Verizon rep

Bill-by-byte might be an advantage for light users but overall it means users have to be conscious of their usage and developers will restrict potential of apps with limits in mind. It would slow down innovation for mobile devices.

With only so much spectrum real estate, there is an inherent limit, so hopefully carriers find a way to manage it without slowing down innovation.
NeoandGeo

join:2003-05-10
Harrison, TN

Re: Key phrase by Verizon rep

Throttling heavy users is a good first step.
xenophon

join:2007-09-17

Re: Key phrase by Verizon rep

Yeah, throttling makes more sense than caps.
InfinityDev

join:2005-06-30
USA

Re: Key phrase by Verizon rep

said by xenophon:

Yeah, throttling makes more sense than caps.
I agree with that. Gotta get the whole ecosystem on board though like Michael Mace said:
»mobileopportunity.blogspot.com/2···net.html
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
said by xenophon:

Yeah, throttling makes more sense than caps.
There's not even a need to throttle. AT&T and Verizon have lots of unused spectrum, and once they get their 4G networks built out they can start shifting 3G spectrum to 4G. They don't cap wireless networks in competitive countries like Sweden and Japan.

Frank
is chilling
Premium
join:2000-11-03
somewhere

4 edits
said by Romney2012:

We will continue to monitor the situation, of course, and look at opportunities that will say what is the best equation for us to drive long-term shareholder value
As for ALL companies that is the prime directive - as it should be.

Tiered pricing, and later hopefully bill-by-byte, will be the future of internet pricing for both wireless and landlines. Bill-by-byte is fairer and also would result in the best chance that capacity will be expanded whenever needed.
nobody in this country wants to think about how much internet usage they consumed. cablevision was thinking about it but found customers hated the idea, at&t tried it and failed, roadrunner tried it and failed.

it doesnt take a genius to figure out that any competitor can simply make a marketing campaign showing people getting overage bills for their internet and it would increase their numbers by ALOT and cause massive churn rates for any company stupid enough to try this (and as a result screwing over the shareholder).

i dont have verizon now but my non-technical girlfriend does.. when I told her about the rumor that verizon was going to charge by how much internet she used, she told me she would cancel verizon in a heartbeat if they ever did.
--
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InfinityDev

join:2005-06-30
USA

Re: Key phrase by Verizon rep

You presume they won't operate as a cartel of duopolies.

Frank
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Premium
join:2000-11-03
somewhere

1 edit

Re: Key phrase by Verizon rep

said by InfinityDev:

You presume they won't operate as a cartel of duopolies.
no, I presume that someone new will always come in and disrupt the market to create a profit as seen currently with wireless with carriers such as metro pcs, cricket, etc..
--
At first I thought everyone on the highway was drunk but then I realized I was driving in Florida
InfinityDev

join:2005-06-30
USA

Re: Key phrase by Verizon rep

Don't all of those carriers (Metro PCS, Cricket) sublet capacity from the large carriers and so they can't offer more expansive service than the spectrum owner?

Frank
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somewhere

3 edits

Re: Key phrase by Verizon rep

said by InfinityDev:

Don't all of those carriers (Metro PCS, Cricket) sublet capacity from the large carriers and so they can't offer more expansive service than the spectrum owner?
no, they both own their own spectrum.

you're thinking of mvno's which by the way usually wind up providing more services for a lower price than their spectrum owners.

examples;

sprint -> »www.virginmobileusa.com/ -> $60 unlimted everything

tmobile -> »www.mysimplemobile.com/ -> $60 unlimited everything

at&t --> »www.joltmobile.com/rateplans.aspx -> $50 unlimited talk and text.
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djrobx

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Valencia, CA
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So far AT&T wireless seems to be getting away with it. Antennagate seems to have made for a nice diversion.

I think AT&T learned something from their trials. We're the frog in the boiling water. If they unleash caps on us we'll all just jump out of the pot. Instead they're gradually increase the water temperature to a boil. They'll throw some customers a bone by lowering prices just a bit. Some people will bite on that. They'll grab some more advanced customers who want "officially sanctioned" tethering. New customers are, of course, just screwed. They figure they'll wait long enough and people will eventually accept it as the norm.
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baineschile
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1 edit
said by Frank:

it doesnt take a genius to figure out that any competitor can simply make a marketing campaign showing people getting overage bills for their internet and it would increase their numbers by ALOT and cause massive churn rates for any company stupid enough to try this (and as a result screwing over the shareholder).

not 2 hours ago....

»consumerist.com/2010/07/college-···ill.html

Romney2012
Defeat Obama 2012-Chg we can believe in
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1 edit

Re: Key phrase by Verizon rep

said by baineschile:

said by Frank:

it doesnt take a genius to figure out that any competitor can simply make a marketing campaign showing people getting overage bills for their internet and it would increase their numbers by ALOT and cause massive churn rates for any company stupid enough to try this (and as a result screwing over the shareholder).

not 2 hours ago....

»consumerist.com/2010/07/college-···ill.html
And it is obvious she has no idea of how a smartphone using push technology is constantly getting and sending status updates for email; Facebook; daily data backups; etc. She thinks LOGGING ON to Facebook was her only data access. Of course I don't buy 4.7 GB in a week unless she was tethering somehow and spent all her time online no matter what she claimed.
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Frank
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Premium
join:2000-11-03
somewhere
said by baineschile:

said by Frank:

it doesnt take a genius to figure out that any competitor can simply make a marketing campaign showing people getting overage bills for their internet and it would increase their numbers by ALOT and cause massive churn rates for any company stupid enough to try this (and as a result screwing over the shareholder).

not 2 hours ago....

»consumerist.com/2010/07/college-···ill.html
sprint doesnt have service in mexico, those are ROAMING charges which is something completely different than what i'm talking about.
--
At first I thought everyone on the highway was drunk but then I realized I was driving in Florida

BF69
Premium
join:2004-07-28
Camden, TN
said by Romney2012:

We will continue to monitor the situation, of course, and look at opportunities that will say what is the best equation for us to drive long-term shareholder value
As for ALL companies that is the prime directive - as it should be.
Um no. Providing customers with a good product or service at a fair price should be. Your line of reasoning is why things are fucked up.

ChrisG1

@starwoodhotels.com

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Re: Key phrase by Verizon rep

No it is not. The point is to make money (turn a profit) for it's owners (shareholders). If not then the company is a NON-PROFIT. Capitalism is the reason wireless even exists as is the i-phone, Google, PC's etc. not to serve the public good! The only entity that by definition is intended to serve the public good (and not an individual's by the way) is the government.

People don't invest in companies to help others. They donate money to charities to do that.
tmc8080

join:2004-04-24
Brooklyn, NY

want tiered pricing?

run everything through LTE, no more cdma, gsm, crap.. just DATA in ONE MODULATION. Start at 3Megabit @ 29.95 unlimited & up from there..

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