Archive for the ‘unlimited’ Category

Verizon Signals the End of the Unlimited Data Plan

The unlimited data plan party could end soon. Verizon Wireless has hinted it is likely to follow AT&T and restrict the amount of data consumers can suck in through their phones.

“We will probably need to change the design of our pricing where it will not be totally unlimited, flat rate,” Verizon’s chief financial officer John Killian told Bloomberg.

For nearly 90 percent of smartphone users, new pricing plans are unlikely to make a big difference in how they use their phones, says Chetan Sharma, who runs a consulting firm focusing on telecom issues. But for super-users, this could signal a change in how smartphones and apps are designed.

It could force developers and entrepreneurs to take a second look at how data is delivered and optimized.

“So far,  the ecosystem hasn’t paid attention to delivery efficiency,” says Sharma. “Content developers rarely care how much data is being transferred over their app. Now there’s room for technology that can help change that.”

Wireless service providers’ decision to do away with unlimited data plans plans runs orthogonal to what smartphones makers are doing. Smartphones today are in a race to offer more storage, along with the ability to shoot high-definition videos and photos. And they encourage you to share, uploading those files to YouTube and Flickr. Add to that video chat capability, especially over cellular networks, and there’s more stress than ever on the network.

“It was unsustainable,” says Sharma. “It couldn’t have gone on forever.”

After Apple introduced the iPhone in 2007, it unlocked a world where users spend more time surfing on the phones, playing with apps and watching YouTube clips than talking on their phone. A Consumer Reports study found that the average iPhone user consumes 273 MB of data per month. About 4 percent users in that study gobbled an average of 1 GB per month.

Sharma estimates an average iPhone consumer uses about 600 MB a month, while a smartphone user who’s not on the iPhone or using an Android device takes in about 300 MB of data monthly. Unless, something changes, that data consumption will only go up, especially with the introduction of more powerful smartphones, straining the network’s capacity, he says.

With the iPhone, AT&T has been the first to feel the pain. In response, earlier this month, AT&T introduced a tiered pricing structure for data. Instead of a flat monthly fee of about $30 for unlimited data, AT&T users will now pay $15 a month for 200 MB, or $25 a month for $2GB. (See what AT&T’s limited data plans mean for you.)

Verizon is not changing the status quo just yet. The company has hinted it will introduce tiered data pricing plans as it opens up its LTE or 4G network. 4G data cards on the Verizon’s network could be launched later this year, followed by the first 4G smartphone next year, estimates Sharma.

A Verizon spokesperson declined to comment on when the company plans to introduce new data pricing plans.

“Unlimited pricing works well when you are trying to create demand,” says Sharma. “But now carriers are facing the reality that while their data revenue is fixed, their costs keep going up.”

Last year, approximately 70 percent of data traffic on wireless networks came from data cards. This year, smartphones will pretty much account for all data requests, says Sharma.

“The iPhone has catapulted the whole data issue to the forefront.”

See Also:

• 3G iPad’s ‘Unlimited’ Data Plan Survives Torture Test
• AT&T Adds iPhone Tethering, Kills Unlimited Data for iPad
• O2 Cuts Unlimited iPhone Data to Just 1GB in UK
• What AT&T’s Limited Data Plans Mean for You
• Cap My iPhone? Try This Instead, AT&T

Photo: (DJOtaku/Flickr)

T-Mobile officially unveils $99 Even More, $79 Even More Plus plans and equipment installment option

Right on schedule with the whispers, T-Mobile lifted the veil off of its new price plan tier structure, Even More and Even More Plus, and from the looks of it all those leaks were pretty much spot-on. The traditional Even More plan is a two-year commitment and discounted phone, with unlimited individual prices starting at $59 per month and going up to $99 if you want unlimited messaging and text, too. Even More Plus scrapes the device discount but offers unlimited individual prices at $49 for voice / $79 for everything. It looks like the only major differentiator is the subsidized handset, but here’s where the numbers don’t add up: even with the steep $350 discount on myTouch 3G, factoring in that $20 premium would pay for the phone during the 18th month, leaving six months and $120 of extra payments left that have no obvious justification to us. Additionally the FlexPay / equipment installment plan is now available, letting you break up the cost of your phone into interest-free monthly bills. It seems Even More’s subsidized phones are offered over four installments (e.g. $37 per month for the $150 MyTouch 3G) while Even More Plus’ is two installments (e.g. $25 per month for the same device at the $500 full price). Our initial takeaway from the price tiers is that T-Mobile is doing what it can to drive its consumers away from the traditional and over to the non-traditional (for US, at least) Even More Plus plan, but hey, we’re not gonna argue over a beneficial contract-free plan, even if monthly phone payments keep us paying the company for at least 20 months. So T-Mo, any other Project Dark surprises in the cards? Inquiring minds want to know.

[Thanks to everyone who sent this in!]

Filed under: Cellphones

T-Mobile officially unveils $99 Even More, $79 Even More Plus plans and equipment installment option originally appeared on Engadget on Sun, 25 Oct 2009 11:14:00 EST. Please see our terms for use of feeds.

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T-Mobile’s Project Dark: $99.99 unlimited on Even More, $79.99 on Even More Plus?

The details of T-Mobile’s mysterious Project Dark definitely seem to be congealing around retooled handset billing and a set of new plans, and it looks like TmoNews might have the first word here on the all-important subject of plan pricing. Even More Plus, which would be contract-free and offer new handset FlexPay over four installments, is apparently tracking for a $79.99 all-you-can-eat package, $69.99 with 1,000 voice minutes, or $49.99 with unlimited voice and no data. Even More meanwhile, which basically amounts to new contract plan branding with traditional hardware subsidies, will come in at $99.99 for unlimited everything (mirroring Sprint’s pricing) or $59.99 for unlimited voice alone. It seems strange that the contract pricing is higher than the prepaid, especially since Even More Plus apparently won’t offer any hardware subsidies whatsoever, but we’re sure we’re going to find out how this all shakes out soon enough. Follow the break for another shot of the pricing grids.

Continue reading T-Mobile’s Project Dark: $99.99 unlimited on Even More, $79.99 on Even More Plus?

Filed under: Cellphones, Wireless

T-Mobile’s Project Dark: $99.99 unlimited on Even More, $79.99 on Even More Plus? originally appeared on Engadget on Wed, 21 Oct 2009 15:07:00 EST. Please see our terms for use of feeds.

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Achtung, T-Mobile: if Project Dark is $50 unlimited, you’re in trouble

Put yourself in T-Mobile USA’s shoes for a moment: rumor has it that the guys who pay the bills aren’t happy. History, happenstance, and the realities of electromagnetics have left you with an oddball 3G frequency that literally no other carrier in the world uses (at least, not for HSPA). Larger competitors don’t take you as seriously as you’d like, and you don’t have smaller ones — they’re all regionals who don’t play in the same space you do. So what’s your next move?

Continue reading Achtung, T-Mobile: if Project Dark is $50 unlimited, you’re in trouble

Filed under: Cellphones, Handhelds, Wireless

Achtung, T-Mobile: if Project Dark is $50 unlimited, you’re in trouble originally appeared on Engadget on Mon, 12 Oct 2009 02:00:00 EST. Please see our terms for use of feeds.

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