Speaking at the 40th J.P. Morgan Technology, Media and Telecom conference, Verizon Communications CFO Fran Shammo stated that as these 3G unlimited data plan customers move to 4G LTE devices, they will have to purchase the company’s yet to be announced shared data plans which Verizon plans to launch in mid-summer.
The move is meant to force everyone moving to LTE devices in the future away from unlimited data plans, as Verizon currently allows those with unlimited data plans to keep those plans when upgrading to 4G smartphones, albeit with grit teeth as the carrier wants to avoid the congestion issues that led to its implementation of tiered data within the past couple of years on its older 3G network as a result of the rise in smartphone adoption.
While the move to shared data plans is not new information from the carrier, the move to force customers off of unlimited data plans with the requirement of shared data plans for 4G devices is a new development and will only serve to speed up adoption of 4G devices until those plans are launched. However, the statement taken at face value may mean that Verizon will also make moves to actively force all customers off of unlimited data plans and onto shared data plans regardless of device, which would understandably anger those customers that want to keep that feature for as long as possible.
With Verizon actively taking a stand against unlimited data access on 4G LTE, the new shared data plans are meant to spur increased adoption of data with multiple devices, rather than the older model of dedicated plans per device, which drove many customers away due to the high costs of each data plan per device, whereas with the new shared data plans, the plan covers multiple devices on one account, at the expense of being tied to one fixed amount of data per month and is being targeted towards families.
Time will tell whether Verizon will continue to tolerate current unlimited data users on 4G LTE smartphones, as many of those with such plans are able to take advantage of such features as unlimited mobile hotspot access on the new iPad as well as on LTE mobile hotspots. With this latest move, Verizon looks to stamp that out as soon as possible and is doing so with extreme prejudice.
I personally suspect that Verizon will throttle grandfathered customers who migrate to LTE before the cutoff… but I also expect those terms to be superior to pooled data.
In either case, the message from Verizon is clear. Even if you love your iPhone, you’ll have the most options if you migrate to an LTE smartphone now.
I have two unlimited iPhones on VZW right now. And, if they require me to switch from unlimited data it will not happen. I will switch back to Sprint and keep unlimited (if they still have it by then) and save myself money while doing it. VZW can really just go f themselves cause this is just going to anger customers and people will leave to go to other carriers.
Glad to see i am not the only one who has noticed the change coming from Verizon. I have been with Verizon wireless for more than 15years. currently they have been flexing more of a greedy attitude vs. a customer friendly attitude as in the past. customers such as myself with family plans and multiple lines are being screwed and not taken into consideration for anything other than fattening of the corporate wallet. There is absolutely no advantage to being a long term customer or a customer with multiple lines. Everything that once was a given is now being taken away and customers are being nickled and dimed to death. with the overwhelming amount of dropped calls and the move to wrestle every dime from a customers pocket, there is no longer anything that sets them apart from any other carrier. I feel more asnd more disappointed every time i step into a Verizon store. BTW, what is this new $30.00 upgrade fee and where did IT come from? 🙁
[…] many, the move is seen as unsurprising. Verizon’s CFO Fran Shammo stated that “all customers” would be forced onto a Share Everything plan once they went into […]
I don’t want to buy a new phone (was buying it outright to keep contract), if they are going to force me to a limited data plan. I used 4 GB in less than 2 weeks. I work on the internet. I will move to a different company. I have internet on my WI-Fi plan from my cable company, I can use a regular phone, even though I love my Droid.
I’ll be one that will leave. My kids and their children have already left.
Cher’ley,
Since this article, Verizon changed their stance. You will be able to keep your unlimited data plan going forward, provided you pay the unsubsidized price for phones (full retail), or purchase a used/refurbished phone.
Provided you do not sign a new contract with Verizon, Verizon has said they have no plans to take away your unlimited data plan.
my plan goes all the way back to alltel, even a verizon rep told me not to let the change my plan(2010), i have had this plan for 10 years, at first (07) verizon told me i would eventually have to change…thats been 6yrs ago, only chang I have mad is adding unlimited plan in Dec2010,
Thank You.