"usage based pricing models best serve the needs of the majority of our customers"

[Vance14]

"The usage based pricing models best serve the needs of the majority of our customers"

That is on the newest leaked document being given to Verizon reps to help them sell the new plan to customers. The idea that this change 'best serves" the needs of the customers is really just BS.

The bottom line is that no existing customer can possibly save money by switching to the new plan, since the lowest smartphone data plan is the same price as the current unlimited plan!

The justification I have heard these carriers give for a tiered plan is that the heavy users and the light users are paying the same amount, which is not fair to the lighter users. They could be paying less if the heavier users were paying more, etc. And this would work if the lighter users were actually given a lower price than they are currently paying while the heavier users paid more than currently. But they are not giving the lighter users a break on price at all. So, how is that "best serving the needs" of their customers?

Why would ANYONE switch from their grandfathered unlimited plan to the new plan?

 

[yodatom10]

I would never make sense to switch away from grandfather in plan. Unless you had to for money reasons but even in that Cass you would be better off not having a smartphone.

 

[Vance14]

Right, if you have a smartphone, the cheapest plan will the same cost as the current unlimited smartphone plan.

I am trying to figure out how this change is in the best interest of the majority of their customers, who they indicate use less than the 2 GB a month. The change would not save them any money, so how is it better for them?

 

[Mike_is_Mike]

Why would ANYONE switch from their grandfathered unlimited plan to the new plan?

.....because I don't want to use my Thunderbolt for the rest of my life?

 

[Vance14]

.....because I don't want to use my Thunderbolt for the rest of my life?

And they indicate that you can upgrade your phone and keep your grandfathered plan.

But, more importantly, how is this change in plan better for the "majority" of their customers, as they try to claim? They can not possibly save any money, so how does it benefit anyone?

 

[zero neck]

if the 2gb plan was 20 dollars and 5 gigs was 40 dollars you could make the case that it is in the best interest of the customers.

this way it is not, that's just a line.

 

[Vance14]

if the 2gb plan was 20 dollars and 5 gigs was 40 dollars you could make the case that it is in the best interest of the customers.

this way it is not, that's just a line.

Exactly. I would consider switching my wife and daughter to a tiered plan if the price was sufficiently lower, they only use about 800 MB a month. As it is, I have no incentive to switch at all because the plan does NOT benefit them, even though they fall squarely in the "majority" they describe.

 

[MegaSoundwave76]

Here's the bottom line when you think about pricing per GB of data. I'm on Comcast and I pay 59.99 a month for their high speed internet which actually has a 250GB data cap limit a month. So if you do the math:

$59.99/250GB = ~$0.23 per GB (Comcast)

$29.99/2GB = ~$14.95 per GB (Verizon Wireless)

Uh, somehow, Per GB pricing on Verizon seems a little outrageous, don't you think? But that's also all the carriers other than Sprint and T-Mobile offering unlimited data (and T-Mobile is unlimited, but they throttle your data usage after the first 5GB).

Edit:
I do have to point out that Comcast has different tiers of broadband data and they break it down by speed. All the different tiers have (I think) the same data caps @ 250GB.

 

[robrecht]

I am trying to figure out how this change is in the best interest of the majority of their customers ...

Don't waste too much of your time trying to figure this out --it's just a garden variety corporate lie.

Thanks, Robrecht

 

[scodoublet]

They should have just made it a flat $10 per GB of data. So that way if you are a light user you could get away with only $10 per month. Now that would benefit the majority.

 

[Vance14]

They should have just made it a flat $10 per GB of data. So that way if you are a light user you could get away with only $10 per month. Now that would benefit the majority.

Very true, that would have been reasonable.

 

[dpham00]

hmmm...just two months ago, they were simplifying Verizon procedures...this looks like a flip-flop to more complicate things...

In that document, Verizon said "very few customers select one-year contracts" and explained that it made sense to eliminate those plans in order to simplify Verizon's procedures and remaining service offerings.

Verizon to drop new one-year contracts starting April 17 - Computerworld

 

[dpham00]

And they indicate that you can upgrade your phone and keep your grandfathered plan.

But, more importantly, how is this change in plan better for the "majority" of their customers, as they try to claim? They can not possibly save any money, so how does it benefit anyone?

For now, yes, however please read the wording carefully:

EXISTING CUSTOMERS- That have our $29.99 unlimited data plan WILL BE GRANDFATHERED IN, they will keep their unlimited plan after 7/7/11 EXISTING CUSTOMERS- That current have the unlimited data WILL BE ABLE TO UPGRADE AND KEEP the unlimited data feature (No known end date on this as of this moment)

Let's remember back in January, Verizon ended ne2 and annual upgrade. People were saying, okay, not bad, still have 1-year contract. Come April, Verizon ends 1-year contracts too. I think this is a smart move on Verizon's part, they are trying to get people to lock in 2-year contracts with data plans prior to 7/7, before the new iPhone and Bionic and possibly next Google phone or whatever "better" phones are in the pipeline, saying, do this, and you'll be locked in for life for all future upgrades. However, I wonder if/when Verizon will end the option to upgrade without losing the unlimited data...

 

[Vance14]

At that point I would have to remind them 1) I am an attorney and I am sure I could make a case that their statements were misleading enough to cause confusion and 2) that I control our firm's phone carrier decisions and could take all of us over to one of the smaller carriers offering a better deal. :0)

 

[BrianTufo]

At that point I would have to remind them 1) I am an attorney and I am sure I could make a case that their statements were misleading enough to cause confusion and 2) that I control our firm's phone carrier decisions and could take all of us over to one of the smaller carriers offering a better deal. :0)

They will tell you they have higher priced lawyers and that if you want to leave that's fine pay them your cancellation fees and move on. They make way too much and have way too many customers to worry about a handful of mad tech savy people.

I agree with you but it won't fix anything on their end. AT&T did the same thing but at least they offered a $15 plan even though it's for a laughable amount of data.

 

[Vance14]

Luckily I have had some success with my local Verizon store getting them to change things, give me better deals, etc. They must have some type of incentives going to make them work hard to keep local customers.

 

[streetstrip01]

Luckily I have had some success with my local Verizon store getting them to change things, give me better deals, etc. They must have some type of incentives going to make them work hard to keep local customers.

Whenever I call, they never "help me out" or try to make me happy. At least I don't think they do, I failed my foreign language class so I could be wrong.

 

[Vance14]

Whenever I call, they never "help me out" or try to make me happy. At least I don't think they do, I failed my foreign language class so I could be wrong.

I think dealing with the local store reps is usually more effective, they have to look you in the eye!

 

[ieko]

Hate the idea of having to watch how much data I use.. most of the ISP's can't count the bytes accurately anyway and people end up getting overcharged.

It's pure craziness, if I don't jump to an unlimited 4G plan I'll have to watch over my data shoulder every time I click "play," or read an e-mail. What a pain.

 

[FrankXS]

Hate the idea of having to watch how much data I use.. most of the ISP's can't count the bytes accurately anyway and people end up getting overcharged.

It's pure craziness, if I don't jump to an unlimited 4G plan I'll have to watch over my data shoulder every time I click "play," or read an e-mail. What a pain.

Really, it's all about streaming and tethering. If you don't overdo those you should be fine, I think.

-Frank

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