Tuesday, June 28, 2011

Unlimited No More

by Harris Cohen, The PromoGuru

Look out, Verizon users! Before the summer ends, excessively streaming Netflix and Pandora on your smartphone is going to start costing you.

Perhaps as earlier as next month, Verizon plans to stop offering an unlimited data plan for smartphones, currently priced at $30 per month. The new tiers will put Verizon subscribers more on level with AT&T users (who lost their chance at an unlimited plan last year). Thirty dollars will now get you 2GBs per month; $50 will cover 5GBs, and $80 will get 10GBs. Similar plans already exist for tablets in the Verizon network. There will not be separate plans for 3G and 4G devices.


The carrier will not cap or inhibit speeds when users go over their allotted gigs. "The user that wants to use a lot [of data] will pay for it," said Verizon CFO Fran Shammo at a conference earlier this year. If you go over your purchased amount of data, it will cost you $10 per 1GB.

Now, if you are a current Verizon user with an unlimited plan, please hold off on that angry tweet. I could have helped your blood pressure by mentioning earlier that current users will not be affected (see this story via Droid Life). I apologize for holding off on that tidbit, and offer this link to help calm you down: Please Stay Calm

As for anyone out there thinking of switching to Verizon, or looking to upgrade within, well, better get out to the store today!

When it comes down to it, though, this change is not likely to have a real effect on most users – right away, at least. A poll conducted this year by Nielsen found that the average American smartphone user only consumes a about 435MBs per month, so most people will be quite comfortable within the 2GB limit. However, that usage figure is up from 230MBs in 2010. So it won’t be too long before us average users might have to upgrade.

On the bright side, this may be a boon for businesses that offer their customers free wi-fi!

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