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Verizon to Ditch Unlimited Data Plans With 4G LTE

- By - Source : Tom's Guide US

Verizon Wireless has said the company will launch a 4G handset by next summer. More importantly, CTO Anthony Melone says that the superfast 4G network and its LTE handsets will be the end of unlimited data.

Melone said Verizon expects to offer LTE handsets within 3-6 months of rolling out its 4G network, something that's expected to happen at the end of this year. Speaking to the Wall Street Journal, Melone hinted that the biggest issue with rolling out a 4G network is all-you-can-eat data plans. "As much data as you can consume is the big issue that has to change," the CTO said.

However, Verizon Wireless doesn’t want customers worrying about their data usage. Melone says the company needs to offer a transparent way for customers to track how much data they're using. "It's one thing to say all you can eat is gone," he told the Journal. "It's another to have consumers worrying, 'Can I stream this radio?' That's what we don't want."

Unlimited data plans are extremely popular with smartphone power users who use data intensive apps and sending emails with pictures and video; precisely the kind of people who would benefit from Verizon's 4G network and subsequent LTE handsets.

AT&T has similar plans for tiered or metered data usage. Last week, CEO Randall Stephenson talked about the industry progressively moving toward what he referred to as "variable pricing" or having customers who consume a lot of data paying more than those who pay less.

What do you think of metered data plans? Let us know in the comments below.

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dacman61 03/12/2010 4:04 PM
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Looks like a continued movement to screw us people who are up with the times and actually know how to use there smartphones to their fullest extent. Not having unlimited plans is going to blow severely.

andboomer 03/12/2010 4:05 PM
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Quote :What do you think of metered data plans? Let us know in the comments below.


I think it will work about as well as Time Warner's plan to cap monthly bandwidth at 40 gb. And unlike the regional monopolies enjoyed by many high speed ISPs, phone service is generally more competitive. If Verizon decides to cap, then it's goodbye Verizon, hello Sprint.

Verizon has better coverage in my area, but I'll take less than perfect service over BS policies any day of the week.

Anonymous 03/12/2010 4:05 PM
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such liars .... verizon hasnt had a a actual unlimted data plan in over 3 yrs ... they say unlimted but fine print says 5 gb. thats why i dropped ur sorry A$$e$$

Pei-chen 03/12/2010 4:09 PM
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soo-nah-mee 03/12/2010 4:11 PM
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I was almost ready to jump on the smartphone bandwagon, but I sure won't if I have to pay for a variable amount of bandwidth. I imagine I wouldn't use the online features too much if I have to worry about going over my limit.

chomlee 03/12/2010 4:12 PM
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What good is a faster service if they dont want you to be doing traffic intensive tasks. If all I wanted was texting and email, I would be waisting my money on a faster speed.

joebob2000 03/12/2010 4:13 PM
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edec 03/12/2010 4:16 PM
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Quote: "What do you think of metered data plans?"

Archaic, inefficient, wasted opportunity, money grabbing.

Here in Sweden, one of our major networks Telia are launching their 4G service imminently and have done the sensible thing – it’s primarily being launched for data, with unlimited plans, aimed at power users / businesses.


Anonymous 03/12/2010 4:17 PM
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Whichever company offers the unlimited data plan will prevail. Ultimately, consumer have been screwed by Phone companies soo often that they would be drawn to a plan that allows them to feel the phone companies can't screw them anymore.

ljport78 03/12/2010 4:21 PM
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Those that think this is a good idea don't realize that the cheapest data plan offered will still probably be $30 after the change.

dman3k 03/12/2010 4:26 PM
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Verizon and ATT are the same company. It's just sibling rivalry. All this bogus lawsuits are just them playing us as fools saying they aren't monopolies as if they are competitors.

ac21365 03/12/2010 4:28 PM
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ac21365 03/12/2010 4:28 PM
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dacman61 03/12/2010 4:29 PM
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edec :
Quote: "What do you think of metered data plans?"Archaic, inefficient, wasted opportunity, money grabbing.Here in Sweden, one of our major networks Telia are launching their 4G service imminently and have done the sensible thing – it’s primarily being launched for data, with unlimited plans, aimed at power users / businesses.



What about cost though?

jtt283 03/12/2010 4:32 PM
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Hilarion 03/12/2010 4:34 PM
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Since their "unlimited" data plans are anything but, this means they want to charge people for for every byte instead. Gotta love "marketing!" It's just ways of making more money off of the chumps for less service and hoping they won't notice.

PostmanPat 03/12/2010 4:36 PM
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I don't see a problem in tiering... I'd be interested in a data plan for occasional use if it was say $10/mo for 100Mb, I know I wouldn't use it much so $30 isn't worth it to me. They could still offer an unlimited plan for maybe $50.

andybird123 03/12/2010 4:37 PM
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rajangel 03/12/2010 4:42 PM
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You know. I don't even have a cell phone. I get along just fine without it.

It boggles my mind why people want to shell out $100 dollars a month for these "services." It's nice to stay in touch with people. It's to the point where its becoming an accepted cultural addiction. People who use food stamps to purchase their food and stuff come through my line with droids, iphones, and other smartphones. Then they cry about how they don't have enough on their foodstamps to purchase everything they want. (This isn't everyone just most of the more selfish ones).

This is a sick backwards world where we are living. H.G. Wells said our fears would kill us. I don't think that's quite the case. If anything our addictions and wants will kill us.

i8cookiemonster 03/12/2010 4:43 PM
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If they meter the most user friendly way to do it would be the way the electric company or water company does it...in a very fine grained manner in usage tiers. That way, if you aren't a heavy user you don't pay excessively, but if you are you pay more, but less per MB. As long as they can accept charging acceptable rates per MB that is (fat chance...I guess there's the hole in my idea lol).

Anonymous 03/12/2010 4:45 PM
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I think it is another way for these companies to rape and pillage the consumers. It is a way for them to charge large fee's for little service and yet demand what service we can have because of the phones they offer. look at AT&T for over 4 years now they have had the Iphone, and yet they want to charge you 50 bucks a month for unlimited data and texting, 30 a month for the apple data plan and then 20 bucks for the unlimited data, when a non smart phone can get the same unlimited data and texting for 30 bucks total. isn't a text nothing but raw data anyways?

and now with all these new phones coming out soon will all force you into a data plan even if you dont want it, what happened to buying and paying for what you need? not what the company is telling you, you have to have?

dman3k 03/12/2010 4:45 PM
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joebob2000 :
Good, let those leechers pay more for bandwidth. I would rather not pay the full $30/mo for a data plan of which I rarely use more than 200 MB/mo. and have never used more than 500mb/mo. If they want unlimited, sell it to them for $99/mo and let me pay $15/mo for a 500Mb/mo plan.For those that whine about the limits, I really doubt you know how hard it is to actually use more than 1GB/mo on your phone (*without* tethering to a PC)

I don't tether. I have a factory Sprint HTC Hero (unrooted) which is incapable of tethering. I use around 1 GB a month. And what I do is watch Sprint TV in the restroom and listen to Pandora radio in the car.

Not hard at all.

drksilenc 03/12/2010 4:46 PM
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joebob2000 :
Good, let those leechers pay more for bandwidth. I would rather not pay the full $30/mo for a data plan of which I rarely use more than 200 MB/mo. and have never used more than 500mb/mo. If they want unlimited, sell it to them for $99/mo and let me pay $15/mo for a 500Mb/mo plan.For those that whine about the limits, I really doubt you know how hard it is to actually use more than 1GB/mo on your phone (*without* tethering to a PC)


its quite easy its called you tube and other multimedia applications like internet radio... bandwidth leacher ehh? you pay for a connections you should have it. not our fault of the isp's dont have the backbone to support what we pay for

pink315 03/12/2010 4:48 PM
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I think this move is great, its going to get the other big three to offer cheaper and better plans. I for example, get unlimited everything through sprint on my blackberry tour for about $60. That plan includes 4G (limited headset availability, but unlocked 4g dongles for sale). I think this will be a great move to push ATAT into finally offering some better plans and data capability. T-Mobile should take the intuitive as well. Sprint already jumped to take all the pissed off Verizon customers who got tired of paying an extra fee for blackberries and who got tired of paying 100 for capped internet usage. Of course where you live will decide which network to buy into. Where I live Sprint is wonderful. Mileage may vary :)

blbec 03/12/2010 4:50 PM
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It depends what the caps are. If it high enough for surfing and email fine. They just obviously dont want everyone downloading video and music over an infrastructure that doesnt have the capacity to support it.

blbec 03/12/2010 4:50 PM
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It depends what the caps are. If it high enough for surfing and email fine. They just obviously dont want everyone downloading video and music over an infrastructure that doesnt have the capacity to support it.

rodney_ws 03/12/2010 4:51 PM
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I take issue with this. Verizon charges what... $30 for a data plan for their phones and even then they cap it at 5 GB / month... and there are overage charges beyond that. Well, why not give us UNDERAGE (I made that word up) charges since most of us rarely use our allotted 5 GB of bandwidth. It should go both ways or not at all.

cracatoa 03/12/2010 4:51 PM
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joebob2000, I just don't think you have any idea how this works. These guys will not lower your rate because they introduce tiered pricing, they'll just make yours the new base. You find me just one instance where a company actually did something that was really good for the consumers (especially amongst cell phone companies) and not just something they said was good for you but turned out to be better for them.

Rollover minutes anyone? AT&T charges 15 - 20 bucks more per month for the same minutes as anyone else, and whatever happens with those "rollover minutes"? Nobody really uses them. They expire every year, and if you save up enough minutes for an entire month, or even 10, you don't get anything free from that.

megamanx00 03/12/2010 4:55 PM
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Bull poop.

apmyhr 03/12/2010 4:56 PM
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Honestly, I'm not sure what is the right or wrong path for wireless ISP's when it comes to data plans. But news like this makes me less anxious to jump on the smart phone bandwagon (which I was planning to do with WP7). Because if I do get a smart phone, I will want to be able to consume a lot of online media.

blbec 03/12/2010 4:57 PM
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rajangel :
You know. I don't even have a cell phone. I get along just fine without it. It boggles my mind why people want to shell out $100 dollars a month for these "services." It's nice to stay in touch with people. It's to the point where its becoming an accepted cultural addiction. People who use food stamps to purchase their food and stuff come through my line with droids, iphones, and other smartphones. Then they cry about how they don't have enough on their foodstamps to purchase everything they want. (This isn't everyone just most of the more selfish ones).This is a sick backwards world where we are living. H.G. Wells said our fears would kill us. I don't think that's quite the case. If anything our addictions and wants will kill us.



I got a job that takes me out to peoples homes often. It is amazing to me to see how many have a big screen tv in the middle of squalor. There is garbage all over the yard and the place is a mess, but there is a tv, an xbox/playstation, and everyone inside has a good cell phone. Its all about priorities. (Many of these are also "undocumented" workers who don't have health insurance. Interesting eh?)