Verizon Scraps Unlimited Data For Upgrades
Published: May 18, 2012
Verizon Scraps Unlimited Data For Upgrades, Its customers can currently switch from 3G to 4G without moving to a tiered data plan.Verizon Wireless is planning to force customers to give up their unlimited data plans when they move to its high-speed wireless service, a top executive for parent company Verizon Communications Inc said on Wednesday.
For now, Verizon Wireless customers who move to the company’s highest-speed fourth generation (4G) network from its older network can still use the company’s unlimited wireless data plan for a flat monthly fee.
But that will change after Verizon Wireless launches a new shared data plan offering this summer, according to Chief Financial Officer Fran Shammo.
“As they start to migrate they’ll have to come off unlimited and go to the shared data plan,” said Shammo who told*n*lysts that he expects the shared plans would boost revenue for Verizon Wireless over time.
Under the new plan, customers will be able to share a monthly data allowance among different devices, unlike current offerings, where they have to sign up for a separate data plan for every device connected to the wireless operator’s network.
But because their data use will be metered under the new plans, customers monthly fees will increase as they increase their usage.
Shammo said he also expects the new offering to encourage customers to connect more of their devices to its network. As a result, he expects them to have to sign up for higher-tier data services that come with higher fees.
“We’re fairly confident we’ll start to see people uptick in the tiers, which is where we’ll see the revenue accretion.” Shammo said in a webcast of an investor conference. (Reuters)
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