Question on Verizon's ending of unlimited data

From here

I’m curious as to why Verizon would want the heavy users to sign up under the unlimited plan. Wouldn’t it make more sense for them to hope people delayed so they’d be under the pricier tiered plan??? I’m sure I’m missing something.

So they don’t jump ship to another carrier that has unlimited data.

I’m still grandfathered into the LAST Vz fuck over.

That makes sense, though as far as I know there’s only Sprint that still has it, at this point (maybe Virgin has something? )

This logic only works if the other carriers will all stop with unlimited data as well in the near future. Otherwise, what’s the point? People will eventually jump ship at a later date.

The point here for Verizon is to maintain market share before the other carriers stop offering unlimited contracts as well. Lock them in for 2 years, because 2 years from now no name brand will offer it anyway.

This is just another example of collusion* that American businesses thrive on…a way to increase the profit margins of all name-brand carriers at the expense of the customer. Everybody talks about a free market and competition blah blah blah. But when barriers to entry are so high, it’s all BS.

Sure, the Verizons, AT&T’s and Sprints will still compete through the pricing of contracts, service and marketing. But they’ve now secured a higher margin for all the players in the industry. While they will all still fight for bigger slice of the pie, they’ve succeeded in making the pie higher (to borrow the words of a recent president).

An argument could be made that Verizon and the other carriers are losing money on the unlimited data plans. Thus, eliminating the unlimited data plan will allow them to stay in business, still competing versus each other, preventing a monopoly-type outcome in which the sole survivor can pretty much charge whatever they want. But I doubt it. There’s a reason why Americans pay more than anyone else for medical care. There’s a reason why GEICO, State Farm, etc. can afford to advertise everywhere at all times using every medium. [/rant]

*I understand that it’s not collusion in the Legal sense. But conceptually, it’s the same thing.

Uh, no. If Verizon is ending their unlimited plans next week, they want to get as many new heavy users as possible on board leading up to that week. If you sign up now, you get unlimited data grandfathered in - why in the world would they wait? Right now, it’s them and AT&T. If data is extremely important to someone, but coverage is still a close second, those people who find Verizon’s service better than AT&T’s will want to sign up now. If they wait, their need for unlimited data will be met by AT&T.

But remember, AT&T has already stopped the unlimited data plan (except for folks who were grandfathered in).

JJ’s argument actually makes more sense to me. You know Verizon is getting a lot of people locking in now who were otherwise holding off - hell, we got in on it as well (I already had a smartphone, Typo Knig is finally getting one as well). It won’t make any difference to us - like I said in the data usage thread, I’ve maybe once gone over the 2G figure… so if we locked in later, we’d get the same data we’re actually using, for the same amount.

AT&T’s plan was actually better priced - if I’m remembering correctly, they had a very-low-usage plan for 15 dollars (500meg?) and a 5gig plan for 25 dollars a month.

My confusion is not so much that they want to get people onboard, but that they’re targeting the heavy users per that memo. Though I guess the folks who’d want to jump (from, say, AT&T) and lock in right now would be the ones who are heavier users. Lighter users might not see the point.

Sorry, I meant Sprint.

Right now, Verizon has a product that AT&T does not have. In a few weeks, they will no longer have that product. If you want to attract customers who want that product, you want to offer it to them while you still have it. People who do not care about that product aren’t a priority.

I’m with AT&T. I had the unlimited $30 a month data plan and stepped down to a lower plan. Currently it’s $15 for 200 Mb and $25 for 2 Gb. I rarely use data on the 3G network, so I don’t even use the 200 Mb I’m paying for now. I knocked $15 off my monthly bill in the process.

Both over-the-air and land-based Internet bandwidth are lower here than in other countries. The infrastructure is not as sound. Fixing it requires a large investment that many smaller companies are not willing to risk.

This is why I think a government-led New-Deal like program to fix this would be a good idea. (Well, that and the fact that it would let Freedom of Speech handle the net neutrality issue.) Let the Information Super Highway be like real highways.

Loophole brag: Our cellphones were originally with Midwest Wireless, who was bought out by Alltel, who in turn was bought out by Verizon Wireless. Because I was an Alltel customer, I was able to have our HTC Incredibles activated on the old Alltel Smart Pack plan but with Verizon’s nation-wide no-roaming map. I get unlimited 3G (on VZW’s full national network), unlim txt, and virtually unlimited minutes owing to a couple thousand plan minutes, plus 500 bonus minutes per line that were permanently added to our account way back in the Midwest Wireless days. For two lines my bill is just over $100 a month vs the $180-something the comparable Verizon plan would be. I can ride this out until I choose to upgrade to a 4G phone - if ever. But right now I’ve got one of the best smartphones out there, and it’s plenty for me. If only I could navigate tax loopholes as effectively as cellphone buyout loopholes…