Verizon to hike price for FiOS and fees, shared data plans coming

By on May 17, 2012, 5:30 PM

Speaking at an investor conference, Verizon CFO Fran Shammo shared that the company will be raising prices for FiOS and charging more for various aspects its services and products. The price hike is intended to offset the tens of billions of dollars Verizon spent on recent infrastructure upgrades, such as expanding its 4G LTE and FiOS coverage.

"You'll see us do some price increases here over the next two quarters" Shammo told investors, referring to FiOS in particular. He also mentioned that Verizon plans to increase fees for set-top box and digital converter rentals, citing the comapny's recent phone upgrade fee increase as an example.

Referred to as a "game changer", Verizon also plans to introduce shared data plans. Currently, cellular customers must purchase separate data plans for each of their devices or tether them to wireless-capable devices. What Verizon is planning will do away with the need for MiFi or tethering by allowing customers to use each of their devices using a single plan.

Sound great? You bet. Paying for multiple data plans on the same account has always made very little sense, so the unification of wireless device data is a welcome addition, even if only from a cost perspective. However, Shammo also told investors that Verizon expects wireless data subscribers to actually spend more. "As they add more devices, they are going to have to buy up into tiers. So again, you will see the revenue increase there." the CFO theorized.

Needless to say, an increase in revenue also implies an increase in the total amount subscribers pay. Unfortunately, no details were given about what to expect in terms of the costs and fees associated with upcoming shared data plans.

Also, headlines across the web are reporting that Verizon is killing grandfathered-in unlimited data plans. This appears to be false, as All Things Digital points out. Existing subscribers who enjoy unlimited 3G will continue to do so indefinitely; however, all-you-can 4G LTE will become a thing of the past. Ultimately, 3G subscribers looking to migrate to greener 4G pastures will have to settle for the only options available -- tiered plans.

User Comments: 12

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Renrew Renrew said:

WTG Verizon--Keep shrinking your customer base, great corporate strategy (sarcasm)

ikesmasher said:

I just hope they have an unlimited shared plan!

Guest said:

it's really a sad situation when a company must make it's customers pay for it's capital improvements instead of it's stockholders.... verizon should pay a dividend to to any customer who must have part of there monthly bill going to towers, fiber, upgrades, ect, and it should be paid before any other dividend is paid to anyone else....

Guest said:

screw this!, I'm gonna build my own network with hookers and blackjack! :)

Guest said:

rigght .. because verizon doesn't already overcharge the hell out its customer base to begin with.

& shared data plans, hey super! now three people can crowd onto a ridiculously conservative 2 GB data plan! sweet! because limited data plans in a culture migrating to purely digital HD content where an average single file size is half the monthly data allowance, make lots of sense!

there is no financial reason whatsoever for data caps to exist with a company like verizon, despite what they tell you, and there certainly is no reason they should be bilking their overcharged customers for yet more $$ to pay for their infrastructure upgrades. how about you cut the bloated, criminal salaries of your management instead.

Guest said:

don't worry...they'll lay off more employees so that the CEO can use that money for his bonus. lobster eating itself. just like GE...selling itself short so jack can get a big fat bonus.

Guest said:

Verizon won't offer Fios in ATT territory. So much for competition! ATT is selling 6 Meg Internet as U-Verse here!! Both of them should buy a clue and get serious.

Guest said:

great...nothing will increase our global competitiveness like stone age data limit restrictions...when will someone tell these ceos they are clueless?

Guest said:

China Mobile coming?

Shit, we are afraid of Communism despite the fact we have the largest navy, the most fighter jet and stealth fighters.

How about Mexico's Movil? Let the guy be trillionaire.

Verizon, its too expensive..

Guest said:

What a greedy company. Clueless CEO and it has already over price and charged its customers. When this is going to end. I have a family plan with 4 lines so I gonna say Bye Bye...Been with for many many years and this is how you reward your loyal customers. Wonder many customers have no respect for company such as Verizon.. Bye...

stewi0001 stewi0001 said:

Wow somebody didn't take an economics class in college. Ever heard of the supply and demand curve? Guess what, price is a factor too.

I hope you get fired...

Tygerstrike said:

Its real easy to keep a grandfathered unlimited data plan. All you have to do is buy your own phone at regular retail and put it on your plan. If you dont upgrade useing your 2yr upgrade that is. They will always make you change your plan when you upgrade.

Also if they do anything to change any part of your current contract w/o your permission, you can be let out of your contract w/o paying the early termination fee.

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