Back in 2010, following in lock step on the heels of AT&T, Verizon imposed cap and overage pricing on wireless data, eliminated their unlimited data plans for smartphones but "grandfathered" existing unlimited users. Speaking on a recent investor webcast
, Verizon Wireless CFO Fran Shammo unsurprisingly stated that as those customers switch to LTE, they're going to be forced to give up their unlimited data plans
Those customers will be pushed toward the company's upcoming "data share" wireless data plan (aka family plans, or pooled data plans) that will allows users to connect multiple household users or devices under one plan. It's an idea that's absurdly overdue, but it may arrive with quite a pricing punch.
As we've discussed
, you can expect that these new shared data plans will come with some significant caveats and fees, as the company looks to avoid the revenues gleaned from forcing each user and tablet to have its own data plan. On that same conference call, Shammo stated that he believes they'll make up most of the losses because more people will connect more devices to the network
Verizon Chief Financial Officer Fran Shammo said he expects the new offering to encourage more customers to connect more devices to its network. As a result, he expects them to sign up for higher-tier data services that come with higher prices. "We're fairly confident we'll start to see people uptick in the tiers, which is where we'll see the revenue accretion." Shammo said in a webcast of an investor conference.
The more people and more devices eating away at your monthly usage allotment, the more quickly users will start to head into overage territory where they'll be forced to pay $10 per gigabyte. Progress? Sort of. Just not for your wallet.