Posted Thursday, May 17, 2012 by John Ennis in Android General

Data Plans Clarification from Verizon Highlight Issues in Wireless Today

Yesterday had quite it’s fair share of drama as Verizon dropped a proverbial bomb on its customers when it was let slip that Verizon’s customers were going to be forced into tiered data at some point, even if you are grandfathered in with unlimited data. Speaking at the 40th annual J.P. Morgan Technology, Media, and Telecom conference, Verizon Communications CFO Fran Shammo stated:

“LTE is our anchor point for data share, so as you come through an upgrade cycle and you upgrade in the future, you will have to go onto the data share plan, moving away from the unlimited world,” he said. “So when you think about our 3G base — a lot of our 3G base is unlimited — as they start to migrate into 4G, they will have to come off of unlimited and go into the data share plan, and that’s beneficial for us for many reasons, obviously.”

Data is data is data. Stop making a difference between hotspot data and phone data.

Today we got this tidbit from Verizon:

As we have stated publicly, Verizon Wireless has been evaluating its data pricing structure for some time. Customers have told us that they want to share data, similar to how they share minutes today. We are working on plans to provide customers with that option later this year.

We will share specific details of the plans and any related policy changes well in advance of their introduction, so customers will have time to evaluate their choices and make the best decisions for their wireless service. It is our goal and commitment to continue to provide customers with the same high value service they have come to expect from Verizon Wireless.

So what does this all mean? TL:DR version: Verizon is looking to get more people off 3G and on to LTE. It invested money into the LTE network and it is barely being used, while the 3G network on Verizon isn’t providing an optimal experience for many people. As you and I come to the end of our contracts and look to upgrade, Verizon is then going to force us into a new contract.

The details on how much the plans are, and how many GB of data are included in said plans have not been released yet. What’s going to be interesting is how Verizon is going to handle multi-line contracts like I have. I have 4 lines on my plan and one line is almost always up for renewal. So what happens when a line needs to be upgraded? Do all the lines then need to be forced into the new plans? It’s all speculation at this point, but we hope that Verizon does offer a solution that works for everyone. Even with my heavy usage of Verizon’s 3G and LTE, I only average around 6-7 GB of data a month. That’s well below the 10 GB plan that Verizon currently offers at the top of it’s pricing matrix. Throw in the double data for free deal and I could in theory, have a 10 GB data cap for $50 a month. The difference is I am paying $30 a month for unlimited now.

Conclusions? If any it is that unlimited data is pretty much dead. Once Sprint sees a good LTE network then perhaps things will change and the field will even out, but as it stands now, things are what they are.

The carriers need to have more flexible plans. For my case a 7 GB plan would be perfect.
Data is data is data. Stop making a difference between hotspot data and phone data.
There needs to be more accountability in how carriers are using spectrum. Verizon and AT&T are accused of hoarding spectrum–let the FCC oversee how that spectrum is being used and let unused spectrum go back to auction. Let’s let the smaller carriers get some action too.
AT&T and Verizon are making so much bank, and they are supposed to, but it seems like they are operating as if they are struggling. Every time that we turn around there is a another fee, for example the $30 upgrade fee so “Verizon can continue to offer workshops to teach people how to use their phones.” C’mon we know you are charging us because you can get away with it. Which brings me to my final point:
Phones should work on any network, anywhere in the USA. This is a pipe dream, but wouldn’t it be great to walk into a store and buy a phone that works on any network? I really want a HTC One X, but I would have to drop Verizon to do so. With all the major carriers going into LTE spectrum and this little tidbit from Verizon, maybe that will happen at some point in the future.

I never thought that I would ever leave Verizon, but for the first time I am thinking hard about that decision. The unlimited data was something that I felt cemented our relationship, but if that goes away then I might consider going to a GSM carrier. The expansion of LTE is also prolific on Verizon, but there were plenty of times during CTIA that my Galaxy Nexus wasn’t transmitting any data at all, and let’s not going into the whole Google/Verizon fiasco over the Galaxy Nexus in the first place.

Man that One X looks sexy right now…

Bio
Latest Posts

John Ennis

Sr Editor at Android Does

Editor
When the USAF dropped this New Jersey boy off in Louisiana, he had no idea that the fun was just beginning. John has turned wrenches on jet engines in a Combat AGE team, raided Molten Core in the day, pwn n00bs in Battlefield 3, and can speak iOS and Android.

John has a BS degree in Culinary Arts, and is working on a Master’s in Education. Married and a father of 4 boys, John gets his screen name, Broadwayblues, from the NHL team the New York Rangers, loves the NY Giants and admits that he likes the NY Mets too. He cuddles his Galaxy Nexus at night.

Latest posts by John Ennis (see all)

Fitbit app updated with Bluetooth 4.0 support, now works on the Galaxy S4 – Friday, May 17, 2013
Use a Google Street View Car to Make a Music Video? Why Not? – Friday, March 29, 2013
Win a $25 Play Store Gift Card Sponsored by Big Fish Games – Wednesday, March 27, 2013
US Galaxy S4 will have the Snapdragon 600 CPU – Friday, March 15, 2013

AT&T fcc lte Spectrum Verizon

Pingback: Androiddoes weekly review May 13th - 19th
http://twitter.com/BeatUpFord Robert

Some other things to consider

1.       A major issue I have with ending unlimited data is that Verizon told us when they started their LTE network that building and maintaining LTE would be cheaper and more data efficient than its predecessor. This highlights your “Verizon and AT&T are pretending like they aren’t making any money,” when they have already have told us that LTE decision was as much financial as it was service oriented. You and I know that LTE is way to sexy to turn down, but we also know that the average consumer (think my parents and siblings who use just a little over a gig a month) don’t really need LTE. They are selling a network that most users don’t need, costs them less to maintain, and handles our data more efficiently while telling us they have to charge us more for better service and product.
2.       The data tiers are criminal. I would point out Verizon’s double data promotion to reinforce my previous point. They are offering double 4g data to upgrades and new customers because it handles the data better. Some bean counter very effectively proved to the big wigs at Verizon that doubling 4g data was actually going to be cheaper on them than selling half the data on the 3g network. Verizon wouldn’t offer double data if that wasn’t the case. We love the service, but let’s not pretend it’s Verizon’s benevolence as the driving force behind their double data.
3.       I recently read a comment on another site where the douchebag was bragging that he used 38 gb of data last month. I would classify myself as a data hog and at my worst, I hit 9 gb, and I usually average in the same range as you do. If Verizon is really concerned about data usage, then they should force these 38 gb people out. Even if Verizon ate the ETF, they would be addressing these data abusers who are doing god knows what consume that much data, some of which I am sure are against the terms of the contract. If you look at the 2 tiers of data as 2gb (x2) as average, 5 gb (x2) and reasonable, 10 gb (x2) as excessive, then Verizon could easily work it into their contracts that their “unlimited” data ends at 10 gb. Anything over that implies someone is tethering and using the data for their home use and possibly for the personal use of their entire family. This option is reasonable give the recent reports on the average data user and just how reasonable 2 gb is. 4 gb of LTE data I still going to be plenty for just about any average user who may not be cloud dependent for many services.
4.       If Verizon was really all that concerned about data consumption, they would demand more storage on their phones, and the always popular expandable storage. The truth is that Verizon (and definitely ATT with their 16gb one x) don’t want you to have massive storage for media files because they want you to be more dependent on the cloud than ever because (and I know I sound like a broken record here) the ability to overcharge you for data consumption on a network that is more efficient is a no brainer that results in more cash.

I don’t mind buying a phone off contract because I live in DFW and there is always some schlub on craigslist who is trying to sell a phone at such a ridiculously low price because they just don’t know what they have. I have seen 2 gnex in the last month for less than $250 (which btw proves the point made my T-Mobile CEO that discounted phone contracts cause many customers to disregard just how awesome the computing power they carry around truly is). I may be blessed because I live in such a metropolitan area, but buying an unsubsidized phone isn’t really all that bothersome to me. I do, however, hate the idea of continuing to pay for a subsidized bill when I don’t get any subsidized perks. How I come to terms with that annoying situation will ultimately determine just how long Verizon and I continue our marriage.