Speaking with The Wall Street Journal on Tuesday, Verizon COO Lowell McAdam said the unlimited data plan for the iPhone 4 will be temporary. He revealed that his company intends to follow in rival AT&T's footsteps and adopt a tiered pricing structure.
Though McAdam did not indicate when Verizon might adopt tiered data plans, the report indicated that the change will occur in "the not too distant future."
It was last June that AT&T stopped offering its unlimited 3G data plan to new customers. Now, AT&T offers 2GB of data for $25 per month, or 200MB for $15 per month.
For now, Verizon customers who buy the iPhone 4, set to debut on Feb. 10, will only have the option of the carrier's $30-per-month unlimited plan. Unlike AT&T, Verizon will not offer a less expensive plan. But unlike Verizon, AT&T does not have an unlimited option for new customers.
Verizon customers who want to get an unlimited plan should act quickly when the iPhone 4 arrives to secure the $30-per-month limited-time offer for at least the two-year-term of a new contract.
McAdam indicated that not offering an unlimited plan for the launch of the iPhone 4 would create a barrier for customers who might otherwise switch from AT&T. "I'm not going to shoot myself in the foot," he said.
The COO also said that he feels anticipation for the arrival of the iPhone on his network held back smartphone sales in the fourth quarter of 2010. Prior to the announcement earlier this month, rumors persisted throughout the second half of 2010 that Verizon would get the iPhone in early 2011.
47 Comments
they are probably doing this to attract those iphone customers on AT&T who have the unlimited plans since they were grandfathered with the change happen at AT&T. They will probably keep it in place until the see the migration of AT&T customers dropping.
Kind of smart in their part...
And this is how collusion works in the wireless industry. Companies use the press to signal their intent and to make sure they don't start actually competing on price. Translation, "We're going to offer an unlimited plan at first to steal a few of your customers, but don't worry, AT&T, you just keep that cap on yours and we'll be joining you shortly. Let's not do anything stupid."
And this is how collusion works in the wireless industry. Companies use the press to signal their intent and to make sure they don't start actually competing on price. Translation, "We're going to offer an unlimited plan at first to steal a few of your customers, but don't worry, AT&T, you just keep that cap on yours and we'll be joining you shortly. Let's not do anything stupid."
So true
And this is how collusion works in the wireless industry. Companies use the press to signal their intent and to make sure they don't start actually competing on price. Translation, "We're going to offer an unlimited plan at first to steal a few of your customers, but don't worry, AT&T, you just keep that cap on yours and we'll be joining you shortly. Let's not do anything stupid."
Certainly not 'collusion' in any sense.
Certainly not 'collusion' in any sense.
If it isn't, its close enough.....