A Verizon exec said at an investor conference that the company is killing its unlimited data plan for "grandfathered" customers and will force existing and new customers to sign up for a new tiered "data-share" plan on its 4G LTE network.
Verizon Wireless subscribers who have held onto their $30 a month unlimited data plans will soon be forced to upgrade to a new tiered offering the company plans to launch this summer, according to the website Fierce Wireless.
Speaking at the J.P Morgan Technology Media and Telecom conference, Verizon Communications CFO Fran Shammo told investors that the company's 3G unlimited data plans that customers were allowed to hang onto last year when Verizon switched to a tiered offering will soon go away entirely. Instead, the company will migrate its existing and new 4G LTE customers to a new "data-share plan."
And before anybody asks, the story says pricing and details of this "data share" plan are not available, but everybody will have to migrate to it once their current contract is up.
PTravel
May 16, 12, 4:17 pm
Interesting. I'm one of those grandfathered subscribers with an unlimited plan. And I have a contract that runs for 2 years. Let's see Verizon try to terminate our agreement.
Boraxo
May 16, 12, 5:35 pm
Makes me feel better about not rushing to Verizon for an iPhone before the original plans were grandfathered. This is probably good news for the vast majority of customers that don't use much data, as the network burden will decrease when data hogs migrate to Sprint.
I am more interested in the new shared data plans, though from what I've read they may not offer much savings at the low end as the minimum price levels will be quite high. Hard to believe that AT&T offers a better deal with data plans starting at $15.
themicah
May 16, 12, 5:57 pm
Interesting. I'm one of those grandfathered subscribers with an unlimited plan. And I have a contract that runs for 2 years. Let's see Verizon try to terminate our agreement.
So long as you keep the same device (or maybe if you pay full retail for a new device) they probably won't terminate your existing agreement. But I could see them forcing you to accept tiered data if you want a subsidy on a new device.
Hmm.... maybe I should drop my POS blackberry for an iPhone sooner rather than later...
TechGeek
May 17, 12, 8:25 am
Interesting. I'm one of those grandfathered subscribers with an unlimited plan. And I have a contract that runs for 2 years. Let's see Verizon try to terminate our agreement.
I'm also grandfathered with a great plan of several years and a 3G Droid, but no current contract. Several times when buying a new phone I have heard "That's a great plan don't ever give that up..."
Never moved a number before, a bit sad that I'm leaving but loyalty goes both ways. bye bye Verizon
Time for some research.
joshwex90
May 17, 12, 9:23 am
So now - it's either Sprint with the unlimited data or Verizon with the 4G network? Tough decision. I really hope they don't take my unlimited data away!
CenterWaters
May 17, 12, 11:07 am
With so little *real" competition, Verizon can pretty much do anything it wants.
What are you gonna do, run to AT&T or T-Mobile. (or worse yet, Spring :eek: )
I guess you can choose not to use smartphones at all... unlikely... but there's
no alternative.
It's almost like the two-party system. You don't like Romney? Fine, vote for
Obama. What? You don't like Obama either? Well... too bad... because those
are your only two choices.
Boraxo
May 17, 12, 3:56 pm
Verizon backtracked on this statement today, so it appears that some subscribers will still be grandfathered though there is a lack of clarity on how this will work.
Sprint pulled the same crap a couple of years ago, basically requiring everyone who wanted to upgrade to a 4G device to go on a costly data plan. It was at that point that I decided to terminate our 11-year relationship and get an iPhone 4. I had a killer plan - $60 for 2 phones, 5pm nights, unlimited texts and data. But one can only wait so long for the iphone. :)
cordelli
May 17, 12, 8:48 pm
according to USA Today, AT&T will also be moving to pooled data. Sprint has refused comment so far.
MR_MAMA
May 17, 12, 8:52 pm
I am grandfathered in on AT&T for unlimited on both my IPad and IPhone 4. By bypassing the 4s, I proved to myself that I don't always have to have the latest phone. I will not give up my unlimited. I will keep these devices until they die if necessary.
Letitride3c
May 17, 12, 11:48 pm
LOL on their 4G LTE network, we barely get 3G mobile speed here unless we go 1/2 miles toward "Main" Street and we got reinforced steel & concrete at the office (it's built like a bunker) so I have no practical reasons to rush & upgrade to 4G (and DW & I could've done that last Fall @ renewal time) - so I'm going to wait-n-see as the fire storm has started over at Howardforum dot com - our grandfathered unlimited data plan is very cost effective after a 22% discount, even with taxes/fees/surcharges added - whereas hers is the $15 special plan with 300MB per month.
The unlocked HTC Incredible 2 is a global phone, running a super-charged custom ROM that paired up nicely with either China Mobile or AT&T Sim cards on the GSM side with 3G/2G data enabled as a PAYG basis - and the device behave nicely - VZW will have to wait 2 or maybe 3 years to try to get us off those grandfathered scheme by using the newer 4G models, and, only if they come up with real solutions & fixes to give much, much improved battery standby & talk time on those devices (without turning it back into a brick again, like the original Microtacs of the early 1990's) Plus, fixed those random 4G outages instead of maintaining complete silence when calls starting ringing on 611 ...
I've given up illusions & dreams that any new, enhanced & data sharing plans will lower our monthly cellular bills in the near to intermediate future - which, is far more expensive than our home's Triple Play bundled pricing ... Both the iPad2 and 7" Android tablet (no contracts needed for them) are eager to "displace" the smartphone - since Angry Bird Space played great on these oversized screen when we travel (took it all on a Bermuda cruise 2 weeks ago - yeah, no TSA - and it was nice to "restrict" the smartphone to essential incoming calls of a priority nature only & to live without always-on mobile data.)
Besides, VZW's promo pricing for "upgrading" to a new device every 22 months is a joke once you factor in the ETF penalty, so eBay might be the way to go for many - thus, we will be staying on our existing plan for a long, long time.
joshwex90
May 18, 12, 1:44 am
Verizon: You can have unlimited data... just no device subsidies - CNet (http://news.cnet.com/8301-1035_3-57436642-94/verizon-you-can-have-unlimited-data..-just-no-device-subsidies/?tag=fd2010TopHeadlines.0)
So according to Verizon now, as long as you keep your own device, you can keep unlimited data. Also, if you upgrade to a new device but pay full retail value, you can keep unlimited data. It's only if you want a subsidy for a new smartphone that you will have to leave unlimited data.
"As they start to migrate into 4G, they will have to come off of unlimited and go into the data share plan. And that is beneficial for us for many reasons, obviously. So as you pick what tier you want to be and we think that there will be some price up in those tiers."
This is great - she doesn't even try to spin anything. "People will have to leave unlimited data so that's good for us." Yes it is. And it's bad for us.
When Does Verizon's Policy Take Effect?
Unlimited data users who are eligible for an upgrade right now should run to their closest Verizon store to get a new phone at the subsidized price. Once the carrier introduces its multi-device shared data plans, expected midsummer, the new policy of paying full price for a phone to keep your unlimited data plan will take effect.
tkey75
May 18, 12, 8:45 am
Verizon backtracked on this statement today, so it appears that some subscribers will still be grandfathered though there is a lack of clarity on how this will work.
The backtracking is that you only lose the unlimited plan when you purchase an upgrade discounted phone but can keep it if you pay full retail. What's unclear is being able to keep the unlimited plan if you purchase phones from secondary markets, but it would seem you can. I'm comfortable using last year's technology, so I'll just buy one on fleabay or elsewhere.
I wonder what this will do to the unlimited plan secondary market. I'm in the market for one, if anyone has one for sale.
joshwex90
May 18, 12, 8:58 am
The backtracking is that you only lose the unlimited plan when you purchase an upgrade discounted phone but can keep it if you pay full retail. What's unclear is being able to keep the unlimited plan if you purchase phones from secondary markets, but it would seem you can. I'm comfortable using last year's technology, so I'll just buy one on fleabay or elsewhere.
I wonder what this will do to the unlimited plan secondary market. I'm in the market for one, if anyone has one for sale.
I don't think it's unclear at all. The article on CNet that I quoted says that in order to get a subsidized device, you will lose the unlimited data.
If you buy from a secondary source, that's not a Verizon-subsidized device.
Dunbar
May 18, 12, 12:42 pm
I just got a new Verizon LTE iPad and the speeds are just blazing fast everywhere I go. It would be so easy for me to use over 10GB a month if I wasn't on a capped plan. If I was on a grandfathered unlimited plan I would be tempted to cancel my cable modem and tether all my devices at home to the LTE iPad. So I can see why Verizon and AT&T are doing this. With my iPhone 4 the 3G network speeds are too slow and inconsistent for me to use any more than about 1GB a month.
highflier1979
May 18, 12, 1:35 pm
Backtracking or not, it will happen sooner or later.
aster
May 19, 12, 11:10 pm
Well, believe it or not people's appetite for data transfer and their mobile devices' capabilities to handle large amounts of it have risen at a much higher speed than the technological capabilities of cell networks.
Seems like more and more people have iPhones, other smartphones, iPads, etc and the amount of data going around is rising exponentially.
Global_Hi_Flyer
May 21, 12, 8:09 am
Backtracking or not, it will happen sooner or later.
Yep, they'll find some way to effectively kill it. ATT essentially did the same.
HawaiiTrvlr
May 23, 12, 9:41 pm
I have a Verizon 3G phone (Droid X) that I got in Dec '10. I am really hoping that Verizon doesn't do this new plan until after Aug '12. That is when I am eligible for a upgrade phone and have been eyeing the Droid Razr Maxx. It's a 4G and with the new announcemnt, I would have to pay full price or get into the tiered plan. Decisions decisions.
mre5765
May 24, 12, 3:19 am
I had the unlimited global data plan which vzw rescinded before my contract was up. I complained and vzw said tough, the contract is unilateral, get over it.
nkedel
May 24, 12, 11:40 pm
I had the unlimited global data plan which vzw rescinded before my contract was up. I complained and vzw said tough, the contract is unilateral, get over it.
I thought for most carriers, their changing the terms of the contract was sufficient to get out of the ETF. I know people have done it for an awful lot less on Sprint...
bmw745ion19s
May 25, 12, 12:49 am
I thought for most carriers, their changing the terms of the contract was sufficient to get out of the ETF. I know people have done it for an awful lot less on Sprint...
+1
They are all liars, hoping that the customer is uninformed so they can rape you. Def grounds to terminate the contract early. Slickdeals and Phonearena have lots of posts on this for you to read up on. hope this helps!
pierre mclopez
Jun 13, 12, 6:53 am
Verizon’s New ‘Share Everything’ Plans: Good Deal or Total Ripoff? - TIME Techland (http://techland.time.com/2012/06/13/verizon-share-everything-plans/)
Bad deal. Data rates for the 2GB plan are roughly double the current rate. There is scuttlebutt in the market that VZ may have really blown it with this deal.
Dubai Stu
Jun 13, 12, 5:05 pm
Bad deal. Data rates for the 2GB plan are roughly double the current rate. There is scuttlebutt in the market that VZ may have really blown it with this deal.
I agree. I am on a 5 gig tablet plan and will probably downsize. I have a jetpack in a desk drawer and was planning on reactivating it for Mrs. Dubai Stu. I would have split a 5 gig plan with her for $60 a month, but why are they surcharging me an extra $10 to use a Jetpack? If we use more data, we'll simply owe them more money. They should be happy with that.
Dunbar
Jun 13, 12, 5:46 pm
but why are they surcharging me an extra $10 to use a Jetpack?
It's $10 for a tablet and $20 for a mifi device under the new family sharing plan. It actually seems like a good deal if you already have smartphones on a family plan and currently pay $60/mo for a 3GB Jetpack data plan. Even if you bump the shared data pool up by 3GB to compensate it will still be cheaper under the new family sharing plan. And of course you get more flexibility with a pool of data that can used however you want amongst several devices.
Also, Verizon clarified on their Twitter page today that the old plans will still be available after 6/28. If you only have one phone you will not be forced onto a sharing plan if you sign up after 6/28. If you want to grandfather unlimited data you'll need to pay full retail for a new smartphone.
I know that the Jetpack is $20. My New iPad is $10. My question was why is it an additional ten for a Jetpack over a second tablet.
Boraxo
Jun 13, 12, 7:49 pm
The new plan would save us a little money over the current one as we have 2-iphones and the combined total data never exceeds 1G/mo. But it is still not competitive with the new Cricket and Virgin plans. As I don't need international service on our personal phones we will probably be switching when the next iphone is released in October.
Dunbar
Jun 13, 12, 9:36 pm
I know that the Jetpack is $20. My New iPad is $10. My question was why is it an additional ten for a Jetpack over a second tablet.
Probably because they're subsidizing the Jetpack and not the tablets.