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Verizon will kill ‘grandfathered’ unlimited data plans, push users to data share

Well I can’t say that I didn’t see this coming but Verizon will be eliminating unlimited data for existing accounts and move them to data share.  Which will allow users to share data.

Via Fierce Wireless

Verizon Wireless (NYSE:VZ) plans to eliminate the $30 per month unlimited data plan that it still provides to 3G customers who were “grandfathered” into the plan because they were data customers prior to the company’s switch to tiered data pricing last July. Speaking at the 40th J.P. Morgan Technology, Media and Telecom conference, Verizon Communications CFO Fran Shammo said that as these 3G unlimited data plan customers migrate to 4G LTE, they will have to purchase the company’s data-share plan (which Verizon plans to launch in mid-summer) and move off the $30 per month unlimited data plan. “Everyone will be on data share,” Shammo said.

Verizon CFO Fran Shammo


Verizon’s data share plan is scheduled to launch in mid-summer but no pricing details have been announced. Shammo said that he believes this new plan will make it easier for families and small businesses to connect multiple devices. The industry, Shammo said, has constrained the market around connected devices because people think they need an additional data plan. “If I can add as many devices as I want, that is more efficient from a family perspective and a small business perspective,” he said.

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However, Shammo said that with the launch of this new data share plan, the industry will have to change a key metric–average revenue per user. Shammo said that Verizon will move to a “revenue per account” metric that will more accurately measure the company’s business.

When asked how Verizon will drive customers to this new data share plan, Shammo said that LTE will be the anchor for the new plan and that as customers upgrade from 3G to LTE, they will have to be on a data share plan, allowing the company to sunset its unlimited 3G data plan. “A lot of our 3G base is on unlimited,” Shammo said. “When they migrate off 3G they will have to go to data share. That is beneficial to us.”

In an unrelated note, Shammo also said that the company will launch Voice over LTE technology at year end, but will not push the technology until mid-2013 when it has a bigger LTE footprint. In fact, Shammo noted that by the end of 2013 Verizon’s LTE footprint will be equal to or even bigger than its existing 3G footprint.


Read more: Verizon will kill ‘grandfathered’ unlimited data plans, push users to data share – FierceWireless http://www.fiercewireless.com/story/verizon-will-kill-grandfathered-unlimited-data-plans-push-users-data-share/2012-05-16#ixzz1v7vM7BXN
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Verizon will kill ‘grandfathered’ unlimited data plans, push users to data share – FierceWireless.

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