Verizon getting rid of unlimited data plans

Verizon Wireless is expected to stop selling unlimited data plans to new customers within six months, says the WSJ, instead opting to offer two plans with monthly bandwidth caps.

In June, AT&T made a similar move, dropping the unlimited 3G data plan while starting to offer three capped plans.

Earlier in the week, Sprint said the company may have to cap unlimited 4G data plans, especially if usage increases exponentially.

For the Q1 2010, average smartphone data consumption jumped to 298MB per month, from an average of 90MB during the period in 2009.

Nielsen research recently concluded that usage-based pricing models are actually fair, as the average smartphone user does not need unlimited. After reviewing 60,000 phone bills, Nielsen says the top 6 percent of smartphone data users use 49 percent of all bandwidth. That leaves the other 94 percent of users for the other half.

It is unclear what the new tiered plans will look like, but most expect them to be similar to AT&T's, which cost $15 for 200MB and $25 for 2GB. Unlimited plans currently cost $30.

Written by: Andre Yoskowitz @ 26 Sep 2010 16:01

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14 comments

jookycola

Kinda looks like Comcast and Netflix's streaming movie apps are about to be a thing of the past.

26.9.2010 17:43 #1

ruff469

I'll say this, if Sprint caps there 4g (which sucks even in areas that are supposed to have it available)My 4g switch will not come on at all. i just bought my wife an Ipad and I'm scared to even think of what here bill would be. She surfs all day.

26.9.2010 18:04 #2

shummyr

Kinda looks like Comcast and Netflix's streaming movie apps are about to be a thing of the past.

Yea Welcome to corporate america, instead of increase the infastructure of there networks they limit it even more...

26.9.2010 18:30 #3

Run4two

What plans do others have outside of the U.S.?

26.9.2010 19:23 #4

xyqo

Originally posted by Run4two: What plans do others have outside of the U.S.? In Jamaica we have two 3g networks and one 4g one is 1.5 mbps (claro) the other 3mbps (Lime) the 4g network (Digicel) uses wimax like sprint and is about 6mbps (actual speed).
The two 3g networks charge about $35 for the service. Claro throttles you after 3GB but Lime cuts you off. Digicel has their 4g for $30 totally unlimited. Its cheaper and faster.

26.9.2010 19:49 #5

biglo30

Originally posted by xyqo: Originally posted by Run4two: What plans do others have outside of the U.S.? In Jamaica we have two 3g networks and one 4g one is 1.5 mbps (claro) the other 3mbps (Lime) the 4g network (Digicel) uses wimax like sprint and is about 6mbps (actual speed).
The two 3g networks charge about $35 for the service. Claro throttles you after 3GB but Lime cuts you off. Digicel has their 4g for $30 totally unlimited. Its cheaper and faster. Yeah but we don't have close to the number of smart phone users as the United States does, so for now we can afford to give those rates. Give it some more time and we will be the same.

26.9.2010 22:36 #6

xyqo

@biglo
Yeh thats true and we know just how greedy our telecoms can get

XXYYQQOO!!! Yeah WELCOME TO JAMROCK

26.9.2010 22:59 #7

biglo30

Originally posted by xyqo: @biglo
Yeh thats true and we know just how greedy our telecoms can get Yeah am just trying to make the best of it now because right now lime is actually doing pretty good. (except for the lame ass name change)

27.9.2010 01:21 #8

joepet200

Originally posted by jookycola: Kinda looks like Comcast and Netflix's streaming movie apps are about to be a thing of the past. You're right. Netflix was just introduced in Canada. Not expensive @ $7.99 per month but ISP (Videotron) limits me to 20GB per month.

Still cheaper to rent.

27.9.2010 09:58 #9

dEwMe

If the carriers keep up this trend they will have to go back to marketing these phones as phones not internet devices that can also make calls...

Just my $0.02,

dEwMe

27.9.2010 13:38 #10

khmernize

I know people aren't gonna like this but why won't they increase the unlimited plan by 5 dollars. Use that extra 5 dollars to increase more speed, space, or whatever. I would like a peace of mine when I'm using unlimited texts, minutes, or data. I panic when I think I'm using to much and I have to use my phone/computer to check how much data I use.

27.9.2010 16:39 #11

KillerBug

"For the Q1 2010, average smartphone data consumption jumped to 298MB per month, from an average of 90MB during the period in 2009.

Nielsen research recently concluded that usage-based pricing models are actually fair, as the average smartphone user does not need unlimited"

Over the course of a single year, the average smartphone data consumption tripled...how long does Nielson think 2GB plans will be enough?

Originally posted by jookycola: Kinda looks like Comcast and Netflix's streaming movie apps are about to be a thing of the past. Nah...there will be lots of grandfathered users, people using wifi, etc...

27.9.2010 23:09 #12

ZippyDSM

what unlimited plans? the 5GB plan is the highest it goes and thats 60$ a month not including voice/text....

Until lobbying is a hanging offense I choose anarchy!
Ah modern gaming its like modern film only the watering down of fiction and characters is replaced with shallow and watered down mechanics, gimmicks and shiny-er "people".
http://zippydsmlee.wordpress.com/

28.9.2010 06:48 #13

pmshah

"Nielsen research recently concluded that usage-based pricing models are actually fair, as the average smartphone user does not need unlimited. After reviewing 60,000 phone bills, Nielsen says the top 6 percent of smartphone data users use 49 percent of all bandwidth. That leaves the other 94 percent of users for the other half. "

Isn't it the American way? 5% of the population owns something like 70% of US or some such absurd disparity ! My figures may be off but not by much.

10.10.2010 23:03 #14

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