Verizon’s Statement On New Data Plan Policies

We just learned about Verizon killing off their unlimited data plans for users that have been grandfathered in. Now we’re getting some clarification from Verizon about the changes and their new push toward shared data plans.

As we have stated publicly, Verizon Wireless has been evaluating its pricing structure for some time.  Customers have told us that they want to share data, similar to how they share minutes today.  We are working on plans to provide customers with that option and will introduce new plans later this year.

When the new options are introduced, Unlimited Data will no longer be available to our customers purchasing handsets and signing a new contract. Customers who choose to purchase phones at full retail price and are currently on an unlimited smartphone data plan will be able to keep that plan. The same pricing and policies will apply to all 3G and 4GLTE smartphones.

We will share specific details of the plans well in advance of their introduction so customers will have time to evaluate the plans and make the best decisions for their wireless service.  It is our goal and commitment to continue to provide customers with the same high value service they have come to expect from Verizon Wireless.

So basically, anyone currently on an unlimited plan can keep it as long as they don’t sign a new contract. This means they have to either keep their current device, or buy any new devices off contract for full price. Many people won’t be able to afford non-subsidized devices so they’ll be forced to sign a new contract and lose their unlimited plan when they decide they want to upgrade their phones. Not the best news, surely, but at least they’re not just shutting it down completely.

source: verizon

About the Author: Ed Caggiani

Originally from the East Coast, Ed now makes his home in San Jose, California. His passion for technology started with his first ColecoVision and Atari gaming systems, and has grown stronger through Tandy computers, IBM clones, Palm Pilots, and PocketPCs. Ed's love for Android began with his first HTC Hero, then blossomed with the original Evo 4G, and now the Evo 3D and Motorola Xoom. He graduated from Syracuse University with a B.S. in Communications, and is now a professional User Experience Designer working in Silicon Valley. In his spare time, Ed enjoys video games, jamming on guitar, and spending time with his wife, two cats, and Logitech Revue.

  • Curt

    First, a $30 upgrade fee….. the fee allows you the privilege of signing up for a 2 year contract at high prices to use the Verizon Network.

    So this summer, if you upgrade and sign a new contract, you have to move from unlimited to a ‘data share plan’. 

    This is not about choice at Verizon. This is a money grab because the data usage is going up, but not the revenue. This is due to the fact that some people that have a data plan cap are starting to know how much data they can run per month to get closer to their caps, but not go over, and not as many people using more data on an unlimited data plan. Verizon doesn’t like that the data rates are going up for the same revenue, and not increased revenue. That doesn’t sit well with the management.

    So they claim that people want shared data plans. Which is a nice concept, but I am willing to bet that a shared data plan will cost more for the same amount of data that you could get on a single phone plan. Verizon is out to screw the customer again.

    Take all this, with the fact that Verizon delayed the launch of the Galaxy Nexus because they did not want the Nexus to compete directly with Motorola Droid Razr when it was launched. Verizon is also delaying the 4.0.4 update for the Galaxy Nexus. Just look at Sprint’s Galaxy Nexus launch. They use the same CDMA technology for 3g as Verizon does, and their phones are updated to 4.0.4 when customer activate their phones AT LAUNCH. Yet Verizon’s Galaxy Nexus phones are still stuck at 4.0.2. Verizon is also not allowing Google Wallet on their network because they will have a competing product next year. Again, not giving their customers any choice, but using predatory business practices to force their customers into paying more.

    This is all happened within the past 6 months.

    So why would people want to stay with Verizon? They do have the most coverage in the United States, and the most 4g coverage too. But other companies will catch up with them.

    So the question still remains. Will Verizon keep adding customers with all the crap that they are giving their customers, or will we see an exodus from Verizon after this year.

    I for one will be looking at another carrier when I am up for upgrades. I have 4 lines and while you might think that the shared data plan will be beneficial to me, but with 2 kids on the account, they do not have smartphones now, and will not ever get smartphones unless they take the phone line to their own account. I know that both of these kids would suck up data like their is no tomorrow if they had smartphones, and with no unlimited data plans anymore, then the costs to myself would be huge.

    I know that only 2 carriers have unlimited data plans, Sprint and T Mobile. Sprints customer service is worse than Verizons, and T Mobile will throttle your account after 3 megs in a month. So those are not options in my book. ATT is really my only other choice at this point because of an employee discount that I get with Verizon. ATT has almost the same discount. So I will see if moving will save me money or not.

    • RTWright

      Well the thing is, Verizon has not really been “Unlimited” at all.  They had a restriction, a cap.  Sprint does not and has not for quite some time.  I’ve been with them for 2 years now and they have been pretty decent with me.  Customer Service for me has been good, I call them and they handle everything well, better than I got from other places I do business with that’s for certain.

      AT&T has been the better carrier though, they have the better reception signal here where I live in Texas.  They also had extremely good Customer Service the one time I was with them.  But they do throttle after so many Gigabytes used based on your contract.  Then there is T-Mobile, I started out on them and it was grate when I had the simple Razr flip phone, but their range was poor.

      I’m using an Evo 4G at this time, I’ve been more than happy with my phone, Sprint’s coverage in my area is poor though, not nearly as bad as T-Mobile, but Verizon and AT&T both are far better.  Their costs are much higher though for similar contracts.  I would buy me a Galaxy Nexus from Google if they offered the 32GB version for sale, all they have is the 16GB though. Then I would get updates as they become available from Google and could go to pretty much any Carrier I want.

      I’m just at a loss now as Verizon is getting MORE expensive than they were already ( I pay less than people using Verizon on Sprint right now ), so now they’re no longer an option for myself at all.  I may be stuck on Sprint and the phone I really want is the Samsung Galaxy SIII, but I’ll never be able to get the device I truly want with a Quadcore, all because the carriers base everything they do off of the CPU.

      So it looks like my options are the GSIII or the newer Evo 4G on Sprint.  Hoping to see that as an option soon for me, but US Customs are now screwing that up and I would love to see Apple get it in the arse for this.  They’re going to get what’s coming to them at some point when people wise up and see just how wrong that company is.  But aside from that, Sprint isn’t terrible, AT&T is more expensive, close to what Verizon is going to and T-Mobile unless they’ve changed over the last 3 years?  They’re worse than Sprint so…. Looks like I’m staying where I’m at.

      • Curt

        Verizon’s unlimited does NOT have a cap. They do throttle a little, but it works differently than ATT and Tmobile. ATT and Tmobile will throttle you for the rest of the month if you hit the magic ‘top 5%’ of data users, but Verizon will only throttle you if you are one of the ‘top 5%’ AND the network node that you are on is congested. Once you move off that node, or the node is no longer congested, then you will return to the regular speeds. 

        My usage of data is not that large, only between 1.5 and 2.5 gigs per month. But I do not normally watch videos on my phone other than some TED talks, but that is more an exception, not the norm. I mostly use my data for my work email, twitter, and internet radio.

        I used to have Nextel, but left them after Sprint bought them out. The customer service sucked, and I got a discount through Verizon and have been a customer for over 10 years with 2 lines, and the other 2 lines were added over the years. My wife and I both have Android phones and both have unlimited data plans. Her renewal is at the end of the year, and I wonder if they will force me to move to the shared data plan if we upgrade her since her line is secondary to my line. Time will tell.

  • Emunny05

    Holy shit. And i though ATT was bending me over by slowing me down after 5 gigs on LTE. If i ever get this news about cutting off my unlimited by buying a new device ill freak out.

  • Jack Holt

    As someone who has used Verizon for 10 years I can safely say that as I have seen them progress I am moving my business else where when my contract is up. First the Nexus debacle, followed by the upgrade fees and the nail in the coffin being the loss of my unlimited plan. Yes I don’t utilize it the way I should however the safety blanket of knowing that I can use it should I need to was there. Now that it’s going away I will be moving to AT&T. They may have crappier customer service, but I prefer their line of phones over most of the Droid Line anyway.