A cheaper yet secured data plan for smartphone customers will be launched by Verizon Wireless by next week, says someone who knows the plans. This is said to be the follow up of AT&T Inc.’s offer of double-tiered pricing.
The country’s biggest wireless carrier considering its subscribers will give a proposal offering 150 megabytes of data for only a $15 monthly plan starting this October 28. the difference it has with AT&T is that the $ 29.99 monthly unlimited data plan will remain accessible for customers.
Carriers want to modify the way they charge their customers for Internet usage, email and music downloads through their cell phones, and this move is a part of it. They have to vary offering these data services at a permanent rate with enough investment in the networks behind them to make sure that the traffic smoothens up.
However, these lower-priced data plans seem to be a benefit for AT&T because it has been a way for them to entice the customers about upgrading into a smartphone. Verizon Wireless wishes that the presentation of its plan will pay off as they had expected, since the $ 15 plan is considered as a holiday promotion for the fourth quarter.
Roger Entner, an analyst at Nielsen, said the plan from Verizon is designated “to make data more affordable for entry-level users”, considering that there are many people who can’t pay for a $30 data.
The $15 monthly charge would be available for the whole span of the two-year contract.
Before even giving out decisions about the extension of the offer permanently, Verizon will still observe the success of it. This choice is seen to be a more affordable plan that could contend against the tiered offering of AT&T.
Verizon Wireless, a company having joint ownership of Verizon Communications Inc. (VL) and Vodafone Group PLC (VOD, VOD.LN), could also make important shifts to the plan the following year the moment it starts its promo for the fourth-generation wireless services. It will launch its 4G network in 38 markets when this year ends, and is overseen to offer modified plans for the service.
According to the Wall Street Journal, the carrier has as well left the door not closed to a go away from infinite information plans before of receiving the Apple Inc. (AAPL) iPhone. Verizon Wireless will sell the gadget prior next year.
Carriers have been fighting with how to present restrictions to hold back the exponential increase in information practice. Sprint Nextel Corporation has set aside to its limitless offering, however, charges $10 extra a month for phones with important information practice. T-Mobile USA, a unit of Deutsche Telekom AG (DTEGY, DTEXE), has talked regarding throttling, or delaying the link for important consumers.
Ivan Seidenberg, Verizon Chief Executive, said last month he anticipated to give a tiered model over the next four to six months.
He said he is looking forward to all carriers to finally give a lesser priced, however limited, data plan.
The first steps for Verizon Wireless marks the new plan. Consumers who go beyond 150 megabytes–which accounts to approximately 900 webpages or 5 hours of pouring out music a month–will be costed 10 cents per megabyte. Accessible clientele have the choice of going to the less costly choice, or staying their latest plan.
AT&T initiated its own limited plans for information. In place of a $30 unlimited plan, it started selling a $15 plan for 200 megabytes of data and a $25 plan for two gigabytes of data in June. Clientele who went over their boundary had to give a charge of $15 or $10, in that order. Obtainable AT&T customers were permitted to stay their limitless plans or change to the less costly restricted plan.
The head of AT & T’s wireless and consumer business, Ralph de la Vega said in a present interview that the lower-tier plan has been doing well in signing up latest customers. AT&T is scheduled to report third-quarter earnings with Wall Street anticipating nosh-up subscriber increase figures.
The latest suggestion appears no different day that Verizon Wireless will start selling the Apple iPad, even though the carrier is only selling the WiFi edition.