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The most interesting latest news on the topic: Verizon |
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AT&T and Verizon are both trying to boost revenue with the same tactic: shared data plans. But the strategy comes with hidden consequences.
Right now, family plans allow members to share voice minutes, but carriers allot separate data plans for individual devices. That will change soon on these two major U.S. carriers, which will give plans with multiple devices one pool of data to use later this summer. The new plans are designed to make data more affordable to consumers, and could likely relieve heavy traffic congestion and spectrum strain for carriers as well. Roger's, one of Canada's major carriers, already adopted the approach and saw a boost in data usage, so AT&T and Verizon likely expect the same thing happening for them. But the strategy carries two distinct risks. 1. Data Sharing Could Lose Money The plans might not bump up costs for consumers, which means the carriers won't increase profits. Frugal families may end up paying less for the combined plan than they did with multiple data packages if they choose a small group package and don't go over the limit. If that happens, AT&T and Verizon will not benefit from the change. With AT&T and Verizon effectively killing off unlimited data, people are likely to keep an eye on their data usage to prevent caps, and if they notice the family plan could increase their fees, they may overhaul their data usage to save money. Data consumption is rising in general among consumers eager to stream movies and perform more tasks on tablets and smartphones, but awareness of data usage could also grow, curtailing revenue growth in this avenue. 2. Data Sharing May Drive Customers Away AT&T and Verizon are trying to sell this change as something consumers want, but the only way it will benefit the carriers is if it charges customers more money to generate revenue, which may breed contempt and cause defections. Both major U.S. carriers are taking a bet and assuming the payoff is worth the risk of alienating customers, but it may give smaller companies like Sprint room to edge into the competition. Sprint is still offering unlimited packages as a way to differentiate itself, but A&T and Verizon both throttle or slow data when users reach certain limits, so if the family plan strategy backfires on the two major carriers it could help Sprint gain more traction in the market. For its part, T-Mobile has disavowed family data plans. T-Mobile believes consumers don't want a "one size fits all" approach to shared family data plans, according to T-Mobile's senior vice president of marketing Andrew Sherrard. T-Mobile is instead boosting a new prepaid mobile broadband data plans for tablets, which allows customers pay in daily, weekly or monthly installments for data, starting at 300-megabytes per week for $15 and going up to 5-gigabytes per month for $50. All carriers are banking on rising data usage to fuel revenue streams in the future, but the dilemma is how best to offer the service to consumers. AT&T and Verizon are betting on shared family data plans as one way to entice more consumers to adding data to their plans, but Sprint and T-Mobile offer other approaches that could help them gain a footing with consumers turned off by the "one bucket for everyone" plans. Risky business, indeed. |
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Verizon will soon move all customers with unlimited data plans into tiered options, marking the true end of unlimited data on its network.
The Score is a weekly column scoring controversial events in the mobile industry. Want to get to the point? We'll break it down and give you the score. The Setup: When Verizon decided to go with tiered data plans last year, customers yelled and cried and kicked and screamed. Well, not literally, but they weren't happy! However, Big Red eased the pain by telling customers that those who already had unlimited plans would be "grandfathered in" to this new model and be able to stick with the terms of their current agreement. But not anymore! As Verizon's 4G LTE network continues to grow and attract customers, the unlimited data plan will be a thing of the past. The reasoning is simple: customers using LTE data are eating up more spectrum than those who are using 3G. As a result, Verizon can't afford to have thousands of customers with unlimited data eating up all the spectrum and slowing down the service for everybody else. Verizon may consider this move necessary, but make no mistake, it's not going to gain any points with customers with it. So, just how bad is Verizon looking after this announcement? Let's take a look at the score. AT&T doesn't offer unlimited data plans anymore either. However, the network is in the process of rolling out its LTE network and has made no announcement so far that it plans to cut off its "grandfathered" unlimited data users. This could change, but for now the comparison just makes Verizon look bad. Especially when it's the one that supposedly has the strongest network. Verizon: - 500 pointsSprint still offers unlimited data plans. No, its network is not nearly as good as Verizon's and there's no proof that anyone over at Sprint can even define what LTE is yet, but the word "unlimited" goes a long way in marketing. Expect Sprint to really up the ante when it comes to advertising itself as the only network where users can get unlimited data plans. Verizon: -250 pointsVerizon is countering its dismissal of unlimited data with a new type of "data share plan." The company expects to unveil details this summer, but analysts expect the carrier to allow family plan users to share one block of data, and not having each line signed up for its own costly plan. This sounds like it could end up being a cost-effective idea that other carriers don't yet offer. Verizon: +500 pointsFinal Score: Verizon: -250 points Customers and some analysts will likely criticize Verizon for pulling its unlimited data completely from life support, but it won't hurt the company too badly. There will be some who decide they can't live without unlimited data and run to Sprint, but they'll be sacrificing network strength and true 4G data in the process. And in the end, Verizon is far larger than the small number of customers that will have a problem with this change. It'll be interesting to see what move AT&T now makes. The company may continue to still keep its unlimited data plan customers happy for a while, but ultimately, Verizon has opened the door for it to now drop this offer as well. Sure, unlimited data plans have been gone for a while. It has been over a year since customers have been able to walk into a store and pick up a new smartphone on a contract without being on a data leash. But this move by Verizon means all traces of unlimited data will soon be gone. It's all over, folks. It's all over. |
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Verizon is having trouble selling off its unwanted assets, as it attempts to convince the Department of Justice to approve its $3.6 billion purchase of spectrum from cable companies.
The Score is a weekly column scoring controversial events in the mobile industry. Want to get to the point? We'll break it down and give you the score. The Setup: The Basking Ridge, N.J- based carrier's agreement to purchase spectrum from a collection of cable companies caught the eye of government officials and raised concerns that the number-one wireless provider in the U.S. was stockpiling the natural resource to lockout its competition. Verizon is now looking to sell off its own unused spectrum to prove to the DoJ that it's willing to play fair, but its competitors are still crying foul. The carrier has been unable to drum up interest for the spectrum it's trying to sell, stalling the approval of its purchase from the cable companies. It now seems the odds are stacked against Verizon as it attempts to push through its transaction for new spectrum. But is the company really doing anything wrong? None of the wireless providers are interested in Verizon's spectrum because they are all against the carrier getting the approval of the DoJ to move ahead with its purchase from cable companies. Sounds like a smart move. The carriers also contend that the spectrum Verizon is looking to sell is only 700-megahertz, which is essentially useless for any company building a high-speed network. Sneaky Verizon! Verizon: -500 pointsWhile Verizon may be playing dirty by making the DoJ believe it's giving away assets that are actually worth something, isn't it just as bad that all other carriers have a gentleman's agreement not to even entertain buying it? If there is some sort of collusion going on here then that is just as wrong. T-Mobile came out and said adamantly it does not need the spectrum Verizon is selling. Really? Maybe T-Mobile should ask its customers if they think the carrier could use the spectrum. Verizon: +500 pointsLet's really think about this hard for a second. Spectrum makes carriers better. Verizon is in competition with all other U.S. phone carriers. Verizon wants to buy a bunch of spectrum to make itself better while hurting its competitors at the same time. What exactly is this company doing wrong? Sure, it's in the best interest of customers to have several competitive options, but why is it Verizon's fault if it does its job better than everyone else? Verizon: +500 pointsFinal Score: Verizon: +1,000 points It seems the only thing Verizon is guilty of here is trying to be (and being) better than everyone else in their marketplace. The bottom line is that the company has more money than all of its competitors and can afford to buy the spectrum it needs to remain successful. Other carriers may want to stomp their feet and cry that Verizon is being unfair, but in reality, they're just mad because they're getting beaten. Think about it this way: in real life, should someone not be allowed to put a second floor on their house just because their neighbor can't afford to do the same? No. Verizon shouldn't be prohibited from making itself better just because its competitors don't have the means to keep up. It's called business. It's called life. |
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Verizon plans to launch the Droid Incredible 4G LTE "in the coming weeks," but consumers should pass and wait.
The Incredible 4G features some decent specs: it's powered by Google's new Android 4.0 software, runs on Verizon's faster LTE network, and features a 4-inch high-resolution display, top-notch 8-megapixel camera with 28-millimeter f/2.2 lens, Beats Audio for better music and a speedy 1.2-gigahertz dual-core Snapdragon S4 chip. So what's not to love? 1. Consider the HTC Rezound The HTC Rezound, Verizon's fourth-quarter flagship phone, features a bigger 4.3-inch screen, with a higher 720-by-1280 pixel resolution -- that's a big difference. The Rezound also comes with an 8-megapixel camera, a plenty-fast 1.5-gigahertz chip, and will soon run on Android 4.0 -- initially released with Android 2.3 -- and works on Verizon's 4G LTE network too. While the Incredible is thinner, lighter, and offers NFC and Bluetooth 4.0, its only real advantage is HTC's Sense 4 -- over the Rezound's 3.5 -- a big improvement for a more streamlined interface, a 50 percent improvement in processing speed and lower power consumption. For a new flagship phone, the Incredible offers slight upgrades in hardware. If you're considering the Incredible, give the Rezound some serious thought. 2. Consider the HTC One The Incredible couldn't have come at a worse time. HTC is in the midst of a turnaround, after a serious decline last year. Why does that matter? The company overhauled its product line to focus entertainment, and the first batch of new phones is the... "One" series, which hit the market a few months ago. That's right. The One is the future. The Incredible is the past. AT&T and T-Mobile carry versions of it, but Verizon has yet to announce a launch -- but that's just a matter of time. 3. Sit Tight, HTC Is Revamping Its Products Still, it's probably best to wait. HTC's second batch will be leaps and bounds ahead. So if you're looking at HTC, give the first generation of One phones a pass, and wait for them to work out the kinks before diving in. 4. Samsung Is on Top of Its Game There's a reason Samsung sold over 20 million Galaxy S2 phones in under nine months. And the South Korean company just announced the successor, the S3, which also runs on Android 4.0, but features a massive 4.8-inch display, advanced "S Voice" technology that responds to spoken orders and gestures, and a 1.4-gigahertz "quad-core" -- not dual-core -- chip. It also comes with a 8-megapixel camera, but with "intelligent" camera options that tracks and adapts to what it sees you doing. Verizon may water down the specs before releasing its version in the summer, but if you can wait a few months, it'll blow the Incredible out of the water. 5. The IPhone 5, Nuff Said Rumors. They're all rumors, really. But still, we'll run through the list: made of liquidmetal, similar 4.6-inch screen, LTE-compatible, and other major changes. In short, it's the iPhone. Expect it sometime in June. Bottom Line If you're going cheap, the Rezound is a better choice. If you're sticking to HTC, wait for the next batch. And if you want the best, wait a few months. When everyone's showing off their quad-core phones, Galaxy S3s and iPhone 5s, just don't say we didn't tell you so. |
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Verizon plans to launch the Droid Incredible 4G LTE "in the coming weeks," but consumers should pass and wait.
The Incredible features some decent specs: it's powered by Google's new Android 4.0 software, runs on Verizon's faster LTE network, and features a 4-inch high-resolution display, top-notch 8-megapixel camera with 28-millimeter f/2.2 lens, Beats Audio for better music and a speedy 1.2-gigahertz dual-core Snapdragon S4 chip. So what's not to love? 1. Consider the HTC Rezound The HTC Rezound, Verizon's fourth-quarter flagship phone, features a bigger 4.3-inch screen, with a higher 720-by-1280 pixel resolution -- that's a big difference. The Rezound also comes with an 8-megapixel camera, a plenty-fast 1.5-gigahertz chip, and will soon run on Android 4.0 -- initially released with Android 2.3 -- and works on Verizon's LTE network too. While the Incredible is thinner, lighter, and offers NFC and Bluetooth 4.0, its only real advantage is HTC's Sense 4 -- over the Rezound's 3.5 -- a big improvement for a more streamlined interface, a 50 percent improvement in processing speed and lower power consumption. For a new flagship phone, the Incredible offers slight upgrades in hardware. If you're considering the Incredible, give the Rezound some serious thought. 2. Consider the HTC One The Incredible couldn't have come at a worse time. HTC is in the midst of a turnaround, after a serious decline last year. Why does that matter? The company overhauled its product line to focus entertainment, and the first batch of new phones is the... "One" series, which hit the market a few months ago. The One is the future. The Incredible is the past. AT&T and T-Mobile carry versions of it, but Verizon has yet to announce a launch -- but that's just a matter of time. 3. Sit Tight, HTC Is Revamping Its Products Still, it's probably best to wait. HTC's second batch will be leaps and bounds ahead. So if you're looking at HTC, give the first generation of One phones a pass, and wait for them to work out the kinks before diving in. 4. Samsung Is on Top of Its Game There's a reason Samsung sold over 20 million Galaxy S2 phones in under nine months. And the South Korean company just announced the successor, the S3, which also runs on Android 4.0, but features a massive 4.8-inch display, advanced "S Voice" technology that responds to spoken orders and gestures, and a 1.4-gigahertz "quad-core" -- not dual-core -- chip. It also comes with a 8-megapixel camera, but with "intelligent" camera options that tracks and adapts to what it sees you doing. Verizon may water down the specs before releasing its version in the summer, but if you can wait a few months, it'll blow the Incredible out of the water. 5. The IPhone 5, Nuff Said Rumors. They're all rumors, really. But still, we'll run through the list: made of liquidmetal, similar 4.6-inch screen, LTE-compatible, and other major changes. In short, it's the iPhone. Expect it sometime in June. Bottom Line If you're going cheap, the Rezound is a better choice. If you're sticking to HTC, wait for the next batch. And if you want the best, wait a few months. When everyone's showing off their quad-core phones, Galaxy S3s and iPhone 5s, just don't say we didn't tell you so. |
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Sprint (NYSE:S) is seeing its fortunes turn around on the iPhone, but the company's future success lies in its ability to cash in on data services, which is at odds with its unlimited plans. |
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Verizon is planning a big marketing push for the launch of Windows Phone 8 later this year, giving the struggling OS momentum to take on Apple and Android. |
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Nearly 30 million Americans, or one in six mobile users, experienced "bill shock," a sudden and unexpected jump in monthly cellular bills, and the Federal Communications Commission is battling to combat the problem. |
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Verizon is on a mission to acquire enough spectrum to keep it on top, as the carrier's continued success depends on data revenue generated by high-speed networks. |
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Think your cell phone bill is too high? Watch out -- Verizon is putting together a plan to win regulator approval to buy spectrum from cable companies, potentially undermining competition and making things worse for wireless customers. |
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