Rumor Alert: Verizon to Cap Data, Follow AT&T's Path - The UpStream

Rumor Alert: Verizon to Cap Data, Follow AT&T's Path

posted Wednesday Jul 21, 2010 by Nicholas DiMeo

Rumor Alert: Verizon to Cap Data, Follow AT&T's Path

It looks like AT&T won't be the only ones killing off their unlimited data package as Verizon might be following suit sometime soon. Currently, Verizon only has prepaid mobile broadband plans ranging from 100MB to 1GB and from $15 to $50. The issue with that is that 1GB can be eaten up pretty quickly just by visiting YouTube for an hour and 100MB is gone with something as simple as a couple of Google searches. Verizon looks to remedy that with some tiered data packages.

For information on what those packages might be, follow the break.

We've heard that Verizon might be going with a 5GB option on August 23rd for a stunning $80. This is not to be confused with the $30 unlimited data plan that was announced at the Droid X launch. The fact that Verizon is keeping this data plan is significant because AT&T, who is selling the new iPhone 4, has eliminated its unlimited plan in lieu of a new two-tiered offer that caps monthly data usage. Now it looks like, Verizon is using AT&T's pricing shift as an opportunity to pick off consumers, who may be interested in the iPhone 4 but are scared off by AT&T's change in data plan.

Executive Senior Vice President John Stratton tried to explain some of the rumors and plans in an interview.

We have indicated that we will move to usage-based pricing eventually. But we are still working out what that pricing will look like and what the levels should be. We haven't announced anything yet. For the meantime we are continuing to offer unlimited data plans.

It's always crunch time for us in this industry. We are always competing aggressively. And we're always looking to raise the bar. With the Droid X we have the device to compete, and we have the network.

We'll see what actually happens as we near the possible August 23rd date. Stratton did mention that it is possible to use the data across multiple devices on the network, so that may be a perk for those who have a smartphone, regular phone, a tethering device and an aircard, but don't use data excessively on all of them.

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