Tiered Pricing on Verizon..Friend or Foe? Fact or Fiction?

Ever since AT&T moved to tiered pricing there has been a heated debate as to whether or not the move was a good deal for customers. Some argued that the deal will save a ton of people money, and gives customers more options for payment. Other argue that it simply swindled heavy users out of wireless freedom.  Throw in recent rumors that Verizon is going to follow suit and you have a tough topic.

However rumors for tiered pricing on Verizon seem to be just as true as rumors about the Verizon iPhone. Which is to say that they haven’t panned out. For instance, take this quote by Verizon CFO John Killian

On pricing we are performing extremely well right now. If you look at our data revenues this quarter, they are up about 24% year on year. If you look at data ARPU for our postpaid base, they are up over 19%. Again, as I said to you earlier, a lot of upside potential there, given where we are around smartphones and multimedia devices in the future.

We have indicated in the past, as we move to an LTE world and LTE pricing, we will probably look very hard at tiered pricing, and that continues to be our thinking right now. So more to come on that. By the way, I should say that all of our efforts, all of our plans on getting LTE launched in the fourth quarter are on schedule.

To me it seems Killian is sending mixed signals by alluding to tiered plan only for LTE (4g) . Does it really make sense to limit the faster, more data-heavy network users are more likely to depend on?

Only time will tell if tiered pricing becomes a tried and true model, or a failed one. What do you think? Do you AT&T customers like the tiered plans? Do you Verizon customers worry about having to limit your usage? Let us know in the comments.

[Source: zdnet]

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