Thursday, June 14, 2012

Verizon Wireless shifts to Data-based pricing

Verizon Wireless has shifted it's pricing focus.  Rather than the traditional pricing cap limits on voice calls and/or texting, bundled with unlimited data, Verizon will now offer free unlimited voice and text, while charging for data.  The shift is significant, and reflects the continuing decline in the costs of voice and texting services, and the exploding
  Verizon had earlier been the second major wireless provider to end unlimited data and institute plans that provide customers with alternative pricing/monthly caps on data usage.  With this announcement, Verizon also announced that it was doubling the price on its popular 2-gigabyte monthly cap plan.  In addition, Verizon announced a new "family" data plan, with monthly fees of $50 for 1-Gigabyte to $100 for 10-Gigabytes, along with a $40 fee for every smartphone associated with the plan, and $10 for every tablet.
Under the new plan, a family of four could easily spend $200 a month for three smartphones and a tablet with a shared data limit of 6 gigabytes. One user with a 2-gigabyte plan for $60 would blow through the limit by streaming 30 minutes of video and five minutes of music and visiting five Web sites each day for a month.
 The new plans are being criticized by a number of consumer groups, and big content providers like Netflix, who complain that the higher prices might limit people's ability to take advantage of their services.  And other wireless and broadband operators are looking towards Verizon and the impact of this change in pricing strategy as they consider data caps and pricing plans.
  Verizon noted that the new plans apply primarily to new customers, and that existing customers may opt to stay with their current pricing/service plans.

Source - Verizon Wireless to offer free voice and texting, boost cost for data useWashington Post

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