TieredPricing
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Verizon finally killing unlimited data plans this summer, says it'll get iPhone 5 at same time as AT&T
Verizon's been telegraphing its intent to drop unlimited data plans for nearly a year, and despite the fact that LTE smartphones launched with all-you-can-eat options, those plans haven't changed one bit. Reuters reports that Verizon will finally nix the megabyte buffet this summer, replacing it with a fully tiered data pricing scheme, though CFO Fran Shammo also floated the idea that tiered data could open up an avenue for family data plans. We've never really enjoyed sharing minutes, so we doubt counting our kilobytes will be much fun, but we suppose there's always room for Verizon to pleasantly surprise us with a really low price for mobile web browsing. Right? By the by, Fran also reiterated claims that the next iPhone will be a global device, and said that when it launches on AT&T, it'll hit Verizon stores at the very same time.
Sprint set to introduce tiered data for mobile broadband, steal candy from children (update: 3G only)
There's a rumor flying about that Sprint is about to drop the unlimited act and give its mobile broadband pricing a shot in the arm. Based on its current plan, $50 per month buys you unlimited data, but after this purported change, the same fee will limit you to 5GB each month -- assuming you're already a Sprint customer using data on your phone, because otherwise it'll cost you an additional $10 per month. Sure, we get that Sprint isn't a charity, but is simply copying and pasting Verizon's mobile broadband pricing really the way to go? Like VZW, it's also been suggested that the Now Network will implement a 3GB plan for $35 and a 10GB option for $80. On the bright side (possibly maybe?), Sprint is throwing in an additional 300 minutes on top of its 450 minute voice plan, though frankly we'd rather have more data. Does anyone have change for 300 unused minutes? Update: Looks like this tiered pricing only applies to 3G, and that WiMAX data plans remain unlimited (see picture after the break). Update 2: Sprint has confirmed that WiMAX usage over mobile broadband cards will stay uncapped, and would like to remind everyone that its data plans for phones will remain unchanged (and of course, unlimited). [Thanks, Korey]
TiVo Premiere now free on contract for $20 monthly, as TiVo introduces (and enforces) tiered subsidies
Well, it seems we finally know why TiVo was waxing poetic about software in recent months -- it's the way the company primarily plans to charge for its DVR hardware from now on. Following a week-long experiment of free-on-contract DVRs conducted last month, TiVo's opening up subsidized and partially subsidized pricing tiers to the entire US for those willing to chain themselves to a pricier $20 monthly fee. You can now get a TiVo Premiere for $0 on a two-year contract or $100 with a one-year arrangement, or pick up a TiVo Premiere XL for $300 on a one-year deal -- the same price the regular old 45-hour TiVo Premiere cost originally. TiVo's also kept the original $12.95-a-month plans around in case you want to pay full price for your hardware, which would normally make better financial sense after about three years, if not for the fact that there are still lifetime subscriptions available for $400 if you're truly in it for the long haul. We're all for expanding our buying power in this arena, but there's one group of customers who are liable to get mighty pissed at the new arrangement -- the regular Joes and Janes headed to Best Buy right now to pick up a $99 TiVo Premiere "on sale." You see, retailers apparently didn't get the memo about the new tiered pricing and are advertising the arrangement as a $200 discount instead, which leaves TiVo's fine print the unenviable role of explaining that they're going to pony up $20 a month from now on. 2.1.2 When purchasing a TiVo Premiere box from a third party retailer at $99.99 (includes an instant $200 savings off MSRP) for the TiVo Premiere box or $299.99 (includes an instant $200 savings off MSRP) for the TiVo Premiere XL box, you may only subscribe to the TiVo Service on a monthly basis for $19.99 a month with a one (1) year commitment (renews monthly after one year). Choices, choices. [Thanks, Daniel and Chris R.]
T-Mobile to intro $10 data plan for smartphone data lightweights?
It's getting pretty clear that T-Mobile is rethinking its mobile data strategy, what with all the prepaid plans, data throttling and WiFi calling going on, and TmoNews says it isn't done shaking things up -- the carrier will reportedly introduce a 200MB data plan specifically for smartphone owners at $10 a month. Before you voice your hatred of tiered data pricing, know that Magenta will reportedly retain the existing $30 unlimited data plan, unlike its blue-and-white rival, and customers who pick the cheaper option will apparently be able to upgrade on the fly. If and when the option debuts in November, it could make that next batch of smartphones all the more accessible. Perhaps you'll be able to afford an LG Optimus T for the young'uns after all.
Verizon CEO confirms plans for tiered data pricing
We told you so. The Wall Street Journal has updated its recent article detailing disclosures from Verizon Wireless chief Ivan Seidenberg, and the latest news is as bad as it is predictable: VZW plans to consign unlimited data plans to the annals of history over the next four to six months, to be replaced by tiered, consumption-based pricing. Seidenberg says Verizon's prices will surely differ from what AT&T recently introduced, noting that his company values data differently to the competition -- though he wouldn't say whether that means costs will be higher or lower. Either way, Droidsters, enjoy your last few months in the unlimited sun. [Thanks, Tyler]
Cricket's new tiered data plans seem like a model for the industry to us
Here's something we can all agree on: data caps are a bummer, especially now that we've all got smartphones capable of gobbling literally gigabytes a day. Unfortunately, they seem to be a necessary evil in this crazy supply-versus-demand world of capitalism we all call home, particularly in light of the spectrum crunch the FCC keeps warning us about. Or are they? One great band-aid rarely explored by North American carriers is the concept of bandwidth throttling, whereby you don't have a hard cap that results in overage -- instead, you just get slapped with a lower data throughput if you blow past your quota. That's what regional value carrier Cricket is doing with the launch of its new data plans today, offering buckets of 2.5, 5, and 7.5GB for $40, $50, or $60, respectively, at maximum speed on its EV-DO network -- but additionally, the quota is on a rolling 30-day basis, which means you can potentially free up some of that bucket each and every day of the month (depending on your usage patterns). If you exceed your cap, you risk falling down to a lower speed where you "may only be able to do basic email and web browsing." The downside is that this represents a $10 increase in the cost of Cricket's 5GB plan -- and bandwidth throttling still isn't fun, of course -- but at least you can keep using your modem without the dread looming in the back of your mind that you're going get a 20-page bill at month's end.
Surprise! The American Cable Association favors tiered broadband pricing
Guess what everybody? Time Warner Cable isn't the only one who thinks tiered broadband is the future -- so does the American Cable Association (ACA). The group claims that a stepped set of packages is the only way in which the high-speed industry can survive the coming hellstorm of your online TV viewing and rampant MP3 downloads. According to ACA president Matt Polka, "the outcome is certain," that metered pricing is on the way -- even if there aren't standardized plans in place yet. The ACA's ex officio chair Patrick Knorr adds that current billing models are "not a sustainable business model," and that "a la carte for the net is consumption-based billing." Though some of the arguments are compelling, the ACA also dramatically suggest that grandmothers shouldn't subsidize those with HD downloading habits, and can't seem to get a fix on just how they want to meter users or what kind of overages should be charged -- both of which seem to be common points of debate. While we're not sold that there's only this single option for pricing broadband (one which heavily favors the provider's bottom lines), the group does bring a tiny bit of thoughtfulness to the discussion, with a member noting that Time Warner Cable's approach hadn't made a very good case for the practice. We suggest a page from Cablevision's playbook, guys.
