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Mardi, 05 Juillet 2011 23:04

Verizon Halts Unlimited Smartphone Data Plans July 7

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Verizon Halts Unlimited Smartphone Data Plans July 7

A Verizon spokesperson confirmed the company will soon shift to tiered pricing data plans. Photo: Jon Snyder/Wired.com

Verizon confirmed Tuesday it will end its unlimited data pricing plan options for smartphone customers on July 7, continuing a broad shift to tiered-use plans amongst cellular carriers.

Instead of the existing $30 monthly fee Verizon currently charges for an unlimited data package, the company’s new structure mimics that of others in the industry. Verizon will charge $30 for 2 GB of monthly data, $50 for 5 GB, and $80 for 10 GB, according to mobile industry publication Fierce Wireless.

The elimination of unlimited data plan offerings confirms an earlier leaked report that the company would shift to a different pricing model before the end of the summer.

In doing away with unlimited data, Verizon follows the lead of the other major carriers. AT&T killed its unlimited data buffet last year. And just this May, T-Mobile rolled out a high-speed data access plan which throttles your connection speed to a lower rate after you hit your data limit. Verizon tried a similar data-throttling maneuver, although the company tried to sweep it under the rug by burying the change in an unpublicized memo.

As smartphones tied to data plans grow more commonplace, wireless carriers change data policies quickly to adjust to demand. Over half of all U.S. mobile phone purchases within the last three months were smartphones, according to Nielsen research findings, while data use has nearly doubled over the past year. Yet the cost per MB of data has dropped by nearly 46 percent. That’s a figure the carriers don’t want to see.

Sprint remains the sole holdout of the four big U.S. carriers, offering its unlimited 3G/4G unlimited data and minutes plan for $100/month, unlimited data and 450 minutes for $70 a month, and unlimited data and 900 minutes for $90 a month. In January, Sprint also tacked on a $10 “premium data fee” for any new smartphone subscribers requiring a data plan.

There’s some good news to Verizon’s announcement: If you’re an existing Verizon customer not on contract, you can upgrade your smartphone and still keep your unlimited data plan even after the July 7 deadline. The flip side to that, however, is you’ve got to sign a two-year contract.

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