Verizon CTO: flat-rate data 'isn't long-term sustainable'
By Chris Ziegler 
posted January 11th 2010 5:25PM
posted January 11th 2010 5:25PM
We'd secretly hoped that 4G would spell the end of 5GB caps on so-called "unlimited" plans, but the problem is that new categories of wireless devices are coming into the mix so quickly that we're likely going to get crunched no matter how advanced the technology -- hence the FCC's pleas to free up spectrum. Echoing comments made recently by AT&T Mobility head Ralph de la Vega, Verizon CTO Dick Lynch is saying that he doesn't see how they'll be able to offer an all-you-can-eat plan when the company's LTE network goes live over the course of the next few years, citing its open development initiative as a key reason -- it's losing control over what devices (and what kinds of devices) can get on its network, raising the odds that there'll be gadgets that incur particularly heavy use. It's a disappointing line for the company to take, but possibly a necessary evil in a truly wireless world. Long-term, the FCC and FTC might need to take a good, hard look at real-time network utilization to verify that Verizon's pricing is in line with its claimed usage, but for now, let's hope we don't all get priced out of our MiFis.
Verizon can go fuck themselves.
@John Doe
Fuck you doughnuts are awesome!!
Damn I thought Verizon was perfect.
Umm, well.. Sprint's 4G is still Unlimited. I don't have 4G coverage yet, but on my 3G accounts, I still pull in 30+ GB on my Sprint Mobile Broadband plan. Then again, I have two mobile broadband accounts and two cell phones with Everything Data plans, so they are probably less inclined to piss me off by canceling my account or charging me extra since my bill is around $300/month.
The whole reason I switched everything from Verizon (voice & data) was because they kicked me off for "violating the ToS agreement", with no proof. Apparently, using more than 5GB even in 2006 MUST mean I am hosting websites, P2P file sharing, or streaming video. I high tailed it off of Verizon and over to Sprint and couldn't be happier.
@muzicman82
oh well, it is a lot of pron. :3
@muzicman82
In 2006 they didn't have many phones with full browsers, and the concept of "apps" was pretty much just WINMO phone apps for banking, so using over 5gb would take some effort.
On my droid I burn through about 2gb a month though, so I can see where you are coming from
I bet if all of you Verizon Executives sold one of your extra homes and went down to a perfectly reasonable $90-100K/year and ditched your $1-2million/year salaries it'd be sustainable. Because trust me, just because you do paper work and are addicted to your Blackberry does not make you any more special then your average office worker doing the same thing for $50K/year.
'flat-rate data 'isn't long-term sustainable'
He's right for 2 reasons.
1. Carriers pay based on bandwidth usage,s o the more used the more they pay. As usage increases the economy of their current supplies means they will not be able to afford unlimited services without a major hike in prices
2. Mobile broadband is very finite. There is only so much spectrum in any given area. Fixed line can add more cables but mobile cannot add more spectrum.
I wish it wasn't so and we could all get totally unlimited wireless broadband for pennies, but it's just not possible.
Hey look over here we are going to get the iphone and we are going to charge you out the kazoo for it!! And we are going to tell you ahead of time. Aren't we nicer than those guys over there?
@spodee
Most sites are pointing out that these changes most likely won't go into effect until 4g, and you'll still have at LEAST 5gb of data to burn through (though with smartphones you can easily use double that and Verizon won't give you a hard time unless you are tethering) for current prices.
What they are talking about is that once 4g comes out, especially with Android devices that let you pretty much do anything if you got the patience, (and are getting full flash support) they can't continue offering once size fits all plans for data. What this means for MOST users is that you can get away with a smaller plan since you won't be subsidizing the heavy users anymore.
I really fail to see how so many people can honestly think that users consuming 80+ GB of data a month is something companies should just ignore and continue underwriting.
Also remember that if you have a verizon plan currently, you won't have to care what changes they make until you go to get a new device.
hahaha vicious verizon, thank you so much for kicking dirt in the face of so called 4G.
how sweet it is!
Verizon/die
VZW is releasing the Pre with wireless tethering capabilities. You can connect up to 5 bandwidth sucking devices to it! And they have been selling laptop cards for a while now too, albeit with a 5GB limit. The thing is, that VZW is saying they can't offer a truly unlimited data plan because their network can't handle it. And it sounds like their 4G is gunna be the same way. The time is pretty much here where internet connections are going to be expected to go with us everywhere we are - Without limitations. If VZW wants to sell phones that are data-hogs, and wants to sell us their 4G... They need to step up it up and deliver a network that can handle it!
@theclerk74
They're not saying they can't handle it. They're saying that charging little to nothing for unlimited internet for every single device isn't sustainable for a long term company. You would end up spending MUCH more money enhancing, upgrading, and maintaining your network then you would receive from service fees. I for one agree. If I have 90,000,000 customers and say 50% of them have $29.99 data packages (unrealistic figure, probably closer to 30%), I would be receiving about $1,349,550,000 per year (with 30% your looking at $809,730,000). Take into account that Verizon put over $5,000,000,000 into it's network in the past 5 years (mainly for data enhancements) and you can see how this isn't sustainable in the long run, especially with more expensive enhancements for 4G/LTE deployments.
The dollar will always stifle innovation. Waiting for the big wigs to make their millions so that we can get the products we want is a never ending cycle.
It seems almost everyone on here commenting in favor of the Telecom company fell asleep during Economics 101. There are this things such as barriers to entry and economies of scale.
Where is the FCC in all of this? It's ridiculous how they yet to separate cell manufacturers with cell service providers. Competition brings about innovation and eventual power prices to the consumer. Let the consumer decide which is the best smartphone for their money without forcing them into overpriced contracts.