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Wednesday, March 16, 2011

Verizon unlimited data plan: Just another trick to lure more users to its 4G network

It looks like Verizon will continue its unlimited data plan for some time more. Its first 4G LTE enabled phone, HTC Thunderbolt, will come with an unlimited data plan for $29.99 per month. The carriers will also continue its unlimited data plan for 3G network supporting smartphones such as the iPhone 4.

On March 1, 2011, Verizon CFO, Fran Shammo, told investors Verizon would probably switch to tiered-pricing by my mid-summer this year after the launch of HTC Thunderbolt but it would never be a long-term strategy.

AT&T currently has two smartphone data plans- $200 MB data plan for $15 and another additional $15 for 200MB; 2GB data for $25 per month and additional $10 for an extra 1GB usage.

Regarding its unlimited data plan, Verizon spokesperson, Brenda Raney, on March 15, 2011, said that the carrier will switch to usage-based pricing sometime this year and even if it switches to “usage-based pricing” it has not been confirmed if the carrier will charge for over-usage like AT&T.

Unlimited data plan is not sustainable and it will only create more pressure on a carrier’s network. AT&T is the biggest example. When it launched iPhone, it offered unlimited data plan which resulted into poor service.

So, why Verizon is still continuing its unlimited data plan? I think, its part of the network’s marketing strategy to popularize its 4G smartphones and lure more users.

Related articles:

Computer World

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