Verizon switching to tiered pricing when 4G kicks off?

By on May 27, 2010, 6:50 PM
Grab your pitchforks Verizon customers, unlimited data may be a thing of the past when 4G rolls out, according to CEO Lowell McAdam. In a conversation with investors yesterday, McAdam said that he doesn't think that unlimited data plans will make sense when the company's 4G network launches and by not making sense, we assume he means to Verizon's bottom line.

Most subscribers currently pay about $30 per month for unlimited data (many still have a 5GB cap), but the carrier may soon turn to tiered plans where people purchase a set amount of monthly megabytes. Naturally, customers under such a model would have to be careful to avoid overage penalties. Interestingly, this comes even though McAdams says the cost of carrying 1MB of data over LTE will be a half to a third cheaper than doing it over 3G.

Verizon isn't the only mobile operator looking to make the switch in pricing schemes, mind you. Both AT&T and Sprint have expressed similar interests.

User Comments: 4

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Guest said:

Wow they would try and scam us for more money somehow! I think the $30 data plan for unlimited is pretty sufficient and with the amount of users switching to Blackberries they are racking in the cash because 90% of them barely use over 100MB a month! If the cost of each MB goes down they should keep the $30 unlimited deal because the overhead for them is going down but the revenues are still coming in just the same. Taking away unlimited options will definitely deter me from wanting to stay with Verizon even after loving all the services I have been getting from them for 6 years now!

windmill007 said:

Cell phones just keep getting more expensive.. Pretty soon $100 a month will be basic service. Who would of every thought we would be paying over $100 a month for a phone and paying over $100 a month for TV.

Guest said:

Consumers are being shafted more than most of you realize already, so this is no surprise. As someone who is in the know it's scary enough, especially with regulatory agencies looking the other way...

tengeta tengeta said:

As long as people believe these things are "necessary" and pay the premium, the premium will go up. Capitalism isn't supposed to work like this, but when you have all the companies of an industry agreeing to keep prices the same as each other and the government doesn't do its job regulating it will never end.

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