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Verizon: You Don't Really Want Unlimited Wireless Data

Much like ISPs who'll insist you don't really want a faster, cheaper connection than they're willing to offer, Verizon this week tried to argue that users don't really want unlimited data. Both AT&T and Verizon years back shifted to shared wireless data plans, and while they've kept some users on grandfathered plans, they've done their very best to drive those users to metered plans by throttling their usage or blocking some apps. And while T-Mobile and Sprint still offer unlimited data plans, Verizon this week argued users really don't want them and shouldn't buy them.

In a new blog post at the Verizon website (hat tip to BGR), Verizon has J.Gold Associates analyst Jack Gold pen a piece that insists that unlimited data plans hurt networks (ignoring apparently that Sprint and T-Mobile throttle their unlimited users before that happens). According to Gold consumers benefit most not by the "freedom" that comes with unlimited data, but by paying some of the highest prices in the wireless industry for capped and metered Verizon LTE Plans:
quote:
...while unlimited data may sound attractive, there is no practical effect of data limits on the majority of users. Understanding this should bring rationality to a discussion that is often held on a “gut feeling” level. Keeping adequate speed and performance while allowing all users to share the limited commodity we call wireless data is the fair way to deal with wireless connectivity. And ultimately, that is what is beneficial for wireless consumers.
Granted what Verizon offers is dictated by competition, and the fact big red often outright refuses to compete on price, data allotments or unlimited offerings should speak volumes to how much competition Verizon actually faces. Meanwhile, if you're one of those customers driven by "gut feelings" and still want unlimited data despite Mr. Gold's warning, Verizon is making it pretty clear you should head over to Sprint or T-Mobile.

Most recommended from 108 comments



Mike
Mod
join:2000-09-17
Pittsburgh, PA

7 recommendations

Mike

Mod

I do

Unlimited bandwidth for a reasonable price, please.
Brim77
join:2012-03-16
Lansing, MI

7 recommendations

Brim77

Member

I want unlimited data, Verizon.

Can you hear me now?

NOCMan
MadMacHatter
Premium Member
join:2004-09-30
Colorado Springs, CO

5 recommendations

NOCMan

Premium Member

Prices do not reflect reality for overages

Cost per GB passed is sub penny and adding network costs etc onto the system are low as well. Maybe .05 to .10/gb.

Yet they charge 15/gb overages which to me should be considered price gouging customers.

Also it's been 6-7 years since these companies have started the 5GB/mo limit for metered plans and that floor has never risen despite increases in speed and size of page loads and other usage patterns. Basically the drink keeps getting bigger and Verizon gives you a coffee stirrer for it, while offering you a better straw for 15/mo.