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Verizon ends unlimited data plans, starts tiered pricing in July
Published: Tuesday, June 21, 2011, 2:59 PM Updated: Tuesday, June 21, 2011, 3:04 PM
By Geoff Herbert, syracuse.com
Verizon ends unlimited data plans, starts tiered pricing in July | syracuse.com
Published: Tuesday, June 21, 2011, 2:59 PM Updated: Tuesday, June 21, 2011, 3:04 PM
By Geoff Herbert, syracuse.com
Verizon ends unlimited data plans, starts tiered pricing in July | syracuse.com
Say goodbye to unlimited data plans, Verizon customers.
AT&T became the first carrier to end unlimited data plans for smartphone users last June, just before Apple's iPhone 4 launched on their network. T-Mobile announced the same switch to tiered pricing last month.
Verizon Wireless said Tuesday the mobile carrier will be ending its offer for unlimited data plans too, starting July 7.
"Verizon Wireless is making some minor changes to data plans including those for new smartphone customers," company spokeswoman Brenda Raney confirmed to CNN. "We will move to a more usage based pricing model in July. We'll have more to share closer to the implementation date."
Tech blog Droid Life reported earlier this week that the data plan will be $30 per month for 2 GB of data, the same price Verizon originally offered for unlimited data. The network may also charge $80 a month for 10GB of data, with tethering to other devices available for an additional $20.
Users who go over their allotted data will pay a fee of $10 per GB, according to Forbes.
The company has yet to confirm what the pricing would actually be, but the switch to tiered pricing isn't surprising news. When Verizon announced in January that the iPhone would be available on their network, they added that unlimited data would be available only for "a limited time."
Currently, AT&T customers pay $15 a month for 200 MB or $25 for 2 GB plus an additional $10 for each gigabyte of monthly data usage that exceeds the allotted 2 GB limit.
T-Mobile offers 2 GB of data for $10 a month, 5 GB for $20 and 10 GB for $50. According to PC World, T-Mobile service is technically unlimited, but users are throttled after hitting their data caps.
PC World points out that after Verizon switches in July, the only major U.S. carrier left with unlimited smartphone data plans will be Sprint.
"The all-you-can-eat data model isn't sustainable," Bob Lento, president of telecom billing firm Convergys, told CNN. "It costs billions for carriers to keep up with customers' data demands. At the same time, they need to be better about informing the customer about the changes so they don't experience bill shock."
Verizon says more details will be announced in July, but existing customers with unlimited data will still be able to keep their plans. The tiered pricing will only apply to new subscribers and customers renewing after July 7.