Results 1 to 18 of 18
  1.    #1  
    News by Michael Oryl on Thursday February 28, 2008


    Today Verizon Wireless put out a press release explaining its previously announced changes to its Broadband Access data plans. Verizon's sole existing plan is a $59.99 'unlimited' plan, though Verizon's current terms state that the carrier may reduce throughput to roughly 200Kbps for any users that consume more than 5GB of data in a given billing period. The current plan, which has been in effect for some time, has no overage fees for consumed data above and beyond 5GB per month.

    That is about to change with the new plans. While on March 2nd Verizon will start offering a cheaper $39.99 per month plan that includes 50MB of data, the new top end plan will cost $59.99 per month and have a 5GB data limit. Users of the $39.99 plan that go above their 50MB quota will pay an additional $.99 per MB, while subscribers to the $59.99 plan that go over their 5GB limit will be charged $.49 per MB of overage.

    This marks a potentially expensive change for heavy data users, as spending a few hours in a hotel room watching video from your home's Slingbox could add a significant cost to your monthly bill.

    These are things that Sprint customers can capitalize on. Data on Sprint is truely unlimmited and cheaper along with being somewhat snappier on their operating frequency. It is sad Sprint is having issues. When I left Sprint...it was a toss between AT&T and Verizon. AT&T network is stellar in my area which made my descision easy.
    at&t iPhone3G
  2. #2  
    I've never understood the 20 and 50 mb plans on verizon... 5 gb I understand. If you go over 5 gb in a month on a phone, you are pushing more than just email, websites and a couple of downloads.

    $1 per mb over is a lot... boy, some people will see some nasty surprises in their bill.

    Especially that first bill will mom and dad got a 50 mb plan for Jr. without understanding what 50 mb is in the first place. Can you imagine? lol.... Like my partner who got a small text plan for his kids... little did he know.
    01000010 01100001 01101110 00100000 01010100 01101000 01110010 01100101 01100001 01100100 00100000 01000011 01110010 01100001 01110000 01110000 01100101 01110010 01110011 00100001
  3.    #3  
    If I put my notebook on Verizon's airwaves I would smoke 5g's on occasion. I use heavy data on my notebook because I use it for personal use. My notebook is a multimedia machine for me. If I were a data plan for work it would be no big deal. Anyways, its not about the limit...its about the fact that the unlimitted data plan is really not unlimitted.
    at&t iPhone3G
  4. #4  
    I agree that's BS! Unlimited needs to mean unlimited, or call it what it really is, the 5GB plan!!
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  5. #5  
    I'd use this as justification for terminating my contact. Sprint with their infinitely crappy customer service still has an unlimited plan. I was looking at getting a card through Verizon for my next laptop.
  6.    #6  
    I don't think any other carirer caps usage under the "unlimitted" data plan package as Verizon does. Who do they think they are...no 7PM free n/w starts, not at any charge including short 12AM Sat- 12AM Sun weekends. They give you the least for the buck of all the carriers. Is this a result of arrogance due to a superior network??? That is why I went with AT&T which seems to have just as good coverage as Verizon in my area plus I am starting to like this GSM thing via sim card, international use, etc.
    at&t iPhone3G
  7. #7  
    Quote Originally Posted by KStewart View Post
    If I put my notebook on Verizon's airwaves I would smoke 5g's on occasion. I use heavy data on my notebook because I use it for personal use. My notebook is a multimedia machine for me. If I were a data plan for work it would be no big deal. Anyways, its not about the limit...its about the fact that the unlimitted data plan is really not unlimitted.
    I do agree that "unlimited" does not sound "unlimited." It is unlimited, technically, not as unlimited as you would like.

    I don't worry about it, I switched to sprint after six or seven years with verizon.
    01000010 01100001 01101110 00100000 01010100 01101000 01110010 01100101 01100001 01100100 00100000 01000011 01110010 01100001 01110000 01110000 01100101 01110010 01110011 00100001
  8. #8  
    All of Verizon's data plans suck, and they're all over priced. Only their market position, name recognition, and very effective advertising lets them get away with it. If Sprint management had half a clue, and if Sprint hired a reasonably competent ad agency, they'd be all over Verizon's customers.
    Bob Meyer
    I'm out of my mind. But feel free to leave a message.
  9. #9  
    Quote Originally Posted by theog View Post
    I do agree that "unlimited" does not sound "unlimited." It is unlimited, technically, not as unlimited as you would like.

    I don't worry about it, I switched to sprint after six or seven years with verizon.
    It is not about being unlimited in a manner that is not to someones liking, technically it is not unlimited at all. That is the biggest BS I have ever heard that you have unlimited access to the internet BUT with a 5GB bandwidth limit. Technically, the 50MB plan is unlimited access also, just with a 50 MB bandwidth limit. You can go over the 50MB plan just by downloading the latest Palm Desktop installer file. Verizon is, and always was, using the term unlimited to falsely advertise and compete with truly unlimited providers. Screw Verizon. Hail Sprint.
  10. mixman's Avatar
    Posts
    217 Posts
    Global Posts
    245 Global Posts
    #10  
    Looks like they've been reading this thread. It's not called "Unlimited" any more. It's now the "5 Gig Plan":

    http://www.verizonwireless.com/b2c/s...d=13&catId=409
    Attached Images Attached Images
  11. #11  
    I'm shocked!

    But it's also possible someone called them on it as misleading customers, like maybe their legal department trying to avoid a class action lawsuit or government intervention from an AG. You never know.
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  12. #12  
    I'm fine with them having a cap, provided they don't call it unlimited -- as they just fixed -- but what I've never understood is the pricing on overages. How is it that the first 5GB of use costs $60 and the next 1GB costs $1,000?

    If Treocentral ever gets to interview one of these guys, please could you ask this question for me? It would be entertaining to hear the spin.
  13.    #13  
    Quote Originally Posted by PatrickS View Post
    I'm fine with them having a cap, provided they don't call it unlimited -- as they just fixed -- but what I've never understood is the pricing on overages. How is it that the first 5GB of use costs $60 and the next 1GB costs $1,000?

    If Treocentral ever gets to interview one of these guys, please could you ask this question for me? It would be entertaining to hear the spin.
    It seems like a nice deterant as far as pricing on overages goes. Pricing will keep you honest no matter voice or data. I do think the overage pricing is waaay steep though.
    at&t iPhone3G
  14. #14  
    Quote Originally Posted by PatrickS View Post
    How is it that the first 5GB of use costs $60 and the next 1GB costs $1,000?

    I think it's like the inverse of how 50MB costs $40, and 5GB costs $60.

    Let's do the math for the fun of it...

    For the 50MB plan: $0.80 per MB if you use it all
    For the 5GB plan: $0.012 per MB if you use it all

    So, the 50MB plan costs 66 2/3 times as much as the 5GB plan.

    Then, assuming your number is right for the overage PatrickS (I didn't look), that next 1GB is $1.00 per MB.

    The price per MB on the 5GB plan will be less than $0.80 as long as you use at least 75MB, but less than 5GB.

    I'm trying to relate this to the pricing of other items... particularly commodity items. Typically, if I buy a single item, the price per-item is higher than if I buy a bunch all at once. The more I buy at once, the deeper the discount.

    Also, if I buy a box of cereal (for example), the cost of packaging for a small box is probably a greater portion of the total cost than for a large box. So, I guess I can understand that there would be a difference in the price per MB between the 50MB and 5GB plans. Those that use between 50 and 75 MB might have a tough decision, but those that have usages outside of that range can probably make a reasonable choice either way.

    The odd thing is the flat rate additional GB. It's just a deterrent, I guess.
    Who's flying this thing?
  15. #15  
    Quote Originally Posted by snowbound View Post
    The odd thing is the flat rate additional GB. It's just a deterrent, I guess.
    Deterrent? I guess I don't understand that.

    I mean, if I was in the business of making cereal, I guess I could price my cereal boxes at $5.00 for the first one and $1,000 for the second, but I'm not sure why I would.
  16. #16  
    Quote Originally Posted by PatrickS View Post
    Deterrent? I guess I don't understand that.

    I mean, if I was in the business of making cereal, I guess I could price my cereal boxes at $5.00 for the first one and $1,000 for the second, but I'm not sure why I would.
    And I, for one, would wish you the best of luck selling that second box, but I sure wouldn't buy it, and I'd probably have a few nasty thoughts about you.

    But I was thinking about it like this: You've made an investment in the equipment to make your cereal and its packaging. What if that investment hasn't paid off sufficiently yet? Maybe you've priced your first box of cereal at a lower price than would pay off that initial investment quickly because you've figured that at a higher price that investment wouldn't pay off at all.

    The problem is... you have no control over who buys your cereal, or how much they buy, yet it's your goal to get your cereal into as many people's mouths as is possible, rather than a bunch of it into a few people's mouths. You also don't want to tell people who buy too much of your cereal that they're banned from buying your cereal again, as that leaves a bad taste in existing and future customers' mouths.

    What would your solution be then? This would be a good argument for charging a nominal price for the first cereal box, but for the price to go up when you try to buy more. It acts both as a deterrent (the relatively frugal customer who needs your cereal sure isn't going to spend a lot if they can avoid it), and as a way of paying off the first investment or raising funds for a second one that would increase the capacity of your cereal-making business.

    It's really tough to know how Verizon actually justifies their pricing to themselves, as we don't really have any idea what their specific investments and budgets are. Speaking as a consumer, the price schedule they have looks a bit ugly, and when comparing Verizon to Sprint (for example) simply on prices, well, I tend to wonder why there's such a difference. But the truth is that we have absolutely no idea how they placed their bets (investments), and therefore we're stuck with complaining about their weird price offerings and voting with our dollars.

    Myself, my vote is split. My wife uses Verizon, and based on my rather detailed analysis of her calling habits (she makes fun of me for how obsessed I get in researching these things), it makes the most sense financially for her to stay with Verizon... particularly since she doesn't make use of data services. I was a Verizon subscriber (back to the Bell Atlantic Mobile days) up until about two years ago, when I decided that the Verizon phone prices and data service prices weren't worth not trying Sprint. I can tell you that as of right now, I'll be getting another Sprint phone for another two years.

    Gosh, this post got much more boring once I stopped referring to the food analogy. Wake up! You're getting a keyboard-face!
    Who's flying this thing?
  17. #17  
    Quote Originally Posted by snowbound View Post
    And I, for one, would wish you the best of luck selling that second box, but I sure wouldn't buy it, and I'd probably have a few nasty thoughts about you.
    Reminiscent of how people generally feel about the carriers, wouldn't you say?

    But I was thinking about it like this: You've made an investment in the equipment to make your cereal and its packaging. What if that investment hasn't paid off sufficiently yet? Maybe you've priced your first box of cereal at a lower price than would pay off that initial investment quickly because you've figured that at a higher price that investment wouldn't pay off at all.
    This sounds like your business plan sucks. What business can survive for very long selling for less than cost?

    The problem is... you have no control over who buys your cereal, or how much they buy, yet it's your goal to get your cereal into as many people's mouths as is possible, rather than a bunch of it into a few people's mouths. You also don't want to tell people who buy too much of your cereal that they're banned from buying your cereal again, as that leaves a bad taste in existing and future customers' mouths.
    This sounds like supply of the product is less than demand. If I were so blessed as to be a company offering such a product, I'd get busy increasing supply, not working to limit demand. That is, unless my business plan sucked, in which case I'd be hooped no matter what I did.

    Anyhow, this type of pricing is self-defeating. If I were technically astute and I intended to use, say, 10GB of data through tethering, I'd just get two phones and switch accounts when I got close to my 5GB limit. I'd rather pay 2 x $50 for 10GB of data rather than ... what? ... something like $5050 with one account with overages. Duh.
  18. #18  
    First, I'd like to say that you've got an interesting idea... buy two lines. That would certainly get around this pricing.

    Unfortunately, I'm seeing where the cereal box analogy doesn't work anymore for this conversation. The thing is that providers like Verizon are going to purchase equipment to build their network, and over time that investment will get paid off and they'll start making money off that investment. The questions that the provider must address for themselves are:
    "When do we want these investments to be paid off by?" and
    "How much do we want to make before making an investment to expand?"
    So yes, in the short term, the price is less than the cost. In the long term, it should be planned to be a moneymaker, and it's up to the provider to plan ahead and see how they'll best be able to make money.

    My guess is that they're looking for broad, well-distributed use of data services, and that they believe the money is best made that way. Therefore, they've designed their current network investments to support what they consider to be a reasonable amount of data per-subscriber. What they didn't handle well was what they expect to be a small number of data users (compared to the total pool of their data users) using large amounts of bandwidth. I think that if they skipped calling the plans "Unlimited" in the first place, people would be less annoyed.

    So, I bet that they're not yet willing to make the next investment. This is one of those times where I wish I weren't aware of the cutting-edge of technology... that for the stuff I work with it would've matured past some of these limitations.

    No such luck.
    Who's flying this thing?

Posting Permissions