Verizon Ending Unlimited Data Plans (All you need to know)

Beginning July 7, 2011, Verizon is following AT&T into the murky waters of tiered data plans.

What does the new pricing model look like?

Basically you’re paying for usage. If you want to tether or hotspot, you must pay separately for the privilege (which doesn’t make sense because data is data regardless of the screen you’re using to view it).

I’m sure that if you go over your monthly data allotment, the fees will be huge, or they will bump you up into the next tier which will still be expensive.

(Image via Engadget)

How does this impact current Verizon customers?

Existing data plan customers may keep their unlimited data plans through an upgrade. If you have a dumb phone, this will not apply to you when you upgrade to a smart phone.

I have no idea what will happen two upgrades from now, or if you want to spin your current phone out of an existing family plan.

It seems to me that Verizon is trying to use tiered data to blackmail current customers into staying with Verizon. That being said, I wouldn’t be surprised if a year from now they apply tiered data to us current customers.

(Image via Droid Life)

You can exit your contract

On July 1st, the regulatory charge on your Verizon bill will increase from $0.13 to $0.16 per month. This three cent increase is enough for you to back out of your contract without paying an outrageous cancellation fee.

You will have 60 days to end your contract should you choose to.

(Via Droid Life)

Why’s tiered data bad?

Increased Cost for Consumers

These plans will inevitably cost consumers more money. Very few people will save as a result of tiered data, and many will break even.

Wrong Direction

Mobile users have been consuming more data, not less.

More of the economy is tied to the growth of mobile data usage than ever before, and tiered data could slow that growth.

Tiered data is a big step backwards, and this is the kind of thing that will become the norm if we choose to put up with it.

What will I do?

This is a tough decision. I’m morally opposed to tiered data, but financially Verizon tiered data doesn’t impact me yet.

Verizon 4G is the best available, but there aren’t any Verizon 4G phones worth buying. Verizon is also very consistent in my area, but Sprint seems pretty damn good too.

AT&T isn’t an option because they are already on tiered data, and so long as AT&T is trying to buy T-Mobile, I won’t switch to T-Mobile either.

If I abandon Verizon, I will switch to Sprint because they offer unlimited data, and have excellent Android phones.

2 thoughts on “Verizon Ending Unlimited Data Plans (All you need to know)

  1. Dude, I just left Sprint for Verizon a year ago. I love my Android phone and FIOS is pretty cool but VZ makes you pay out the wazoo for it. A lot of my friends hate Sprint and have had horrible customer service experiences with them (I haven’t). But I would not mind upgrading to one of those sweet HTC EVO’s.

    I’m torn.

  2. “Torn” is the right word. The way I see it is the day they data cap me is the day I’m gone.

    Verizon has a superior network.

    Sprint has unlimited data and arguably superior Android hardware (at the moment).

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