And So It Begins, Verizon CEO Confirms Tiered Data Plans

Image Credit: Engadget

I kind of want to put this article in the rant section, because it is well known how I feel about Verizon and their habits of nickel and diming their customers to death.

Engadget Mobile is reporting today that Verizon CEO Ivan Seidenberg has confirmed that over the next four to six months, his company will be moving to tiered pricing on their data plans.  You knew this was coming, Verizon cannot pass up a monetization opportunity, and with Droid phones crunching data like Captain Crunch, this is too juicy of an opportunity for them to pass up.

Once the barrier of being the first to launch tiered plans was removed, it was only a matter of time before we saw Verizon go down this road.  There is no word on what the tiered pricing is going to look like, but you can bet it is going to match every other tiered pricing arrangement ever made.  The low end making it miserable so that you will want to upgrade to the “premium concierge” tier.

I really hope we don’t see the other carriers move to this tiered scheme, but I think it is inevitable.  Unlimited data, it has been great knowing you.

  • foebs

    Four phones on my plan. We used 54gb last month. They sell a device which excels at retrieving high rates of data, full of software which can use tons if bandwidth easily… What did they expect? People would only make phone calls and check their email? They HAD to know it would be this way, no way this is a suprise. Instead of locking down, they should take their new money and dramatically increase their footprint of top of the line towers.

    There is tons of historical precedent though. We will not lose our plan. It is however not a promising future for mobile computing. When the two year successor to the DroidX comes out, Verizon may have some loophole rule where it requires some newly minted plan and is not compatible with my current unlimited plan.

  • I must say, I’m definitely a data addict… while I could probably do without relatively easy (web, email, etc.)… more devices are coming with software that require it just to function. So, while my EVO does great now, turn the data off and it becomes relatively useless (unless you’ve got a reliable hotspot near).

    I feel if this type of thing becomes the norm, (personally) I may just revert to a basic “actual phone” and start solidly using my gVoice number so at least I can get my calls anywhere.

    I might start reading books more (as opposed to my reader (while out)), doing “old school” stuff that does not require the internet.

    I’ve paid allot to be an early adopter and as I get older I wish I had saved and am slowly learning my lesson by cutting back.

  • I’ve used 1.57 gigs this week alone. I hope T-mobile doesn’t go down this road.

    The thing that annoys me is that mobile data is now way more expensive than home data… With 2 phones, I pay $60 a month on mobile data, and only $40 for home data, which is of course unlimited, and uses way more data.
    I understand that wireless infrastructure is different, but I do think the wireless companies are simply taking advantage at a time where it’s actually able to stifle innovation. We’re seeing some amazing services emerge that use lots of data. Now people have to think twice about it, which sucks.

  • Arrgh! Verizon is at it again!

    First they sold me an older Droid Eris phone, they they stopped selling it, cutting off all support and updates. Then they want to come out with their own VCast App store, undercutting Google’s profits. Now they want to force me to pay more for the same amount of data. I’m very likely to switch carriers now after my contract is up. This is getting ridiculous.

  • Riddlin

    Great. Just bought a new incredible, Droid X and a Galaxy S. $90 a month in date and they are going to tell me its going to cost more? Damn where is my old Nokia.

  • Ryan

    I’m thinking Virgin Mobile unlimited mobile hotspot at $40.00 and a phone or ipod touch with no data plan running skype/Google Voice if they keep this crap up

  • Stone37

    I predict that soon we will see T-Mobile and Sprint commercials bashing Verizon for this move.

    • And then we will see them join the party.

  • Here is my only hope. When this was first rumored a month or so ago I heard that existing unlimited clients would be grandfathered it or it would be a breach of contract. I have unlimited now so the way I see it I should have unlimited forever.

  • hP

    AT&T has done it already and let the grandfathered people keep their unlimited, just new accounts can’t have it. It’s not that big of a deal if you stick with the same carrier, because you’ll just keep the unlimited data plan. I do not know anything about Verizon, and if they will let people keep what they have already but I really don’t see them being that mean (hoping anyways). AT&T rolled out their tiered data plan for the release of iphone 4. Hasn’t there been rumors about Verizon getting the iphone (I know there has been rumors for over a year now but there has been websites getting reliable sources claiming this more recently). Interesting, eh? Coincidence if Verizon iphone and tiered data plans roll out together? I think not.

  • Don

    This makes me feel good that I’m with Sprint. The last thing I need is some greedy company trying to squeeze more money out of me.

  • Alex

    If I get grandfathered In that’ll be awesome. I love Verizon but if they somehow managed to loophole my plan and change it from unlimted to something else I’m gonna be pissed.

  • Eric

    Sure, they offer unlimited data when the data speeds are slow and the phone have little use for bandwidth….As soon as network and the phones speed up to usable levels; they price it out of usefulness….I know many people who decided against an iphone 4 because AT&T added ridiculous tiered pricing to new contracts….thank goodness for android on t-mobile, sprint and (for now) verizon….the cell industry: penny wise, dollar foolish…..i hope the companies who go down that ‘nickel and dime’ road lose marketshare and $….

  • paxmos

    As long as they have us stupid consumers, they will impose these restrictions and will get away with it.


    subtle way of sayin’ they aint got the network to support what they sell.

  • castlerock611

    Yeah,they grandfather you in for now,knowing if they breach your contract,you can leave without paying the early termination fee,but lets see if they let you keep that unlimited data plan if you early upgrade or sign up for a new two year contract.Im betting that when your contract is up they will make you switch to tiered data plan because technically you will be signing a new contract.

  • JaylanPHNX

    I don’t think T-Mobile will go this route. They’ve made it fairly clear that their plans are their strongest asset. They’ve concentrated on great plans and top-notch customer service, and being the last unlimited data provider standing would be right in line with their ethos. Sprint has added a $10 surcharge for 4G customers, and T-Mobile has not and will not upcharge their HSPA+ network. I think AT&T and Verizon are doing their level best to make Sprint and especially T-Mobile competitive again. Thanks, guys.

  • Jason K

    Tiered data is a very bad idea. However, just keep in mind that if you are on a current contract at the time with the unlimited data, you keep the unlimited data until you make changes to your plan. If Verizon changes your current plan without your consent, you an get out of paying the early termination fee. What sucks is they have such good coverage and they know it.

    When I see that “Rule the Air” commercial, it makes me upset now. All I can say is how are we suppose to rule the air with tiered data? Maybe if we bombard verizon’s twitter accounts with sayings like if Verizon goes to tiered, I am changing carriers, it might change. The more angry customers, the better.

  • ThisIsMyName

    Well, I guess this means I’ll be going to Sprint or T-Mobile when my plan is up.

    You’re expensive enough as it is Verizon, a tiered plan is a slap in the face.

  • Sam Herren

    So glad I kept my TMO plan even after activating two VZW Droids.

  • Hey – someone’s gotta pay for that shiny new LTE network expansion, it may as well be you and I. Tiered data plans are a double edged sword – not only do they create more revenue, but they also serve as a way to retain customers – not many people are going from Verizon’s unlimited data plan to buy an iPhone with a limited data plan.

    Thank goodness WiFi is more available – and if you really need to get unlimited data, you can always get a Virgin Mobile MiFi card – check it out here.

  • mickydeenyc

    I used to have a T-Mobile plan and went back to Verizon for their coverage, especially in NY City. But T-Mobile is looking better and better to me. As it is, I shudder every time I look at my monthly VZW bill for my Droid and my wife’s (seldom used) simple phone.

    I sure liked T-m’s CS, and when I went to Europe and kept my number, that was a big plus — expensive — but worth it.