Wednesday, March 2, 2011

Verizon to end unlimited data plans this summer


By James Kendrick | March 1, 2011, 1:39pm PST

Summary

The Verizon CFO indicated today that the carrier’s conversion to metered data usage will take place this summer, about the time Apple is expected to introduce the next iPhone model.

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James Kendrick
Verizon Wireless has not been shy in the past about admitting it wants to charge all customers with mobile data plans based on a usage tier. CFO Fran Shammo indicated today that the conversion to metered data usage will take place this summer. This timing would put the Verizon switch from unlimited data for a fixed monthly fee to a tiered fee based on actual data usage about the time Apple is expected to introduce the next iPhone model.
Shammo also stated that Verizon expects a backlash from current iPhone customers when the new iPhone model is announced, as those customers will be locked in a contract with the older model phone. He went on to state that the carrier would see a financial hit for a quarter after a new iPhone hits the market.
Smartphone owners have grown used to the unlimited monthly data plan, and may be in for sticker shock once the conversion to metered usage takes place. Customers will have to pay attention to how they use the smartphone under such plans, as common activities like streaming audio/ video will keep the usage meter clicking.
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