Verizon Will Introduce Tiered Data Pricing in Next 4 to 6 Months, Says VCast App Store is about ‘Choice’


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We have heard talk for a while of Verizon moving to a tiered pricing plan for data on their network along with the launch of their 4G LTE service, and it seems plans are moving ahead. The Wall Street Journal is reporting that the new pricing structure could be in place in four to six months. It is unclear whether tiered pricing will apply only to 4G, which is also set to launch in the same timeframe, or if it will be slapped across the board for 3G as well.

There is no talk of exact pricing, but Verizon Chief Executive Ivan Seidenberg made sure to voice his disagreement with the valuation of data in competitor AT&T’s similar pricing scheme. That leaves some hope for reasonably priced (or as reasonable as VZW pricing could be) data packages to meet the demand of users no matter how much data they chew up month to month. We’re sure to be hearing a lot more about the new pricing over the next few months.

And just like tiered pricing offers users a “choice” when it comes to paying for only the data they use, Verizon is defending the announcement of their own V CAST Apps store for Android phones on the same basis. While many have viewed it as a blatant attempt to one-up Google at their own game, Verizon is taking a different stance. “V CAST Apps is NOT out to take over the phone. It’s about choice, and about simplicy [sic] – carrier-billing — and quality — great apps,” they tweeted in response to questioning at the Verizon Developer Community Conference.

But is it really about choice? Or rather, is there anything wrong with Verizon’s app store? Samsung features media and app stores on their Galaxy S devices in addition to the Android Market. Many carriers without access to the Market or paid apps in the Market have instated their own avenues of pedaling priced apps. Yes, the V CAST Apps store may take a step back from the progressive changes Verizon seemed to make when they launched their first Android device, the Motorola Droid, but it isn’t all gloom and doom for the future.

The point is Android and Google allow for things like third-party app stores and proprietary apps. Yes, it often leads to annoying bloatware or something along the lines of the whole Verizon/Bing/Fascinate fiasco, but it’s part of the reason why carriers and manufacturers are so keen to adopt Android. They can do with it almost anything they want and then turn a huge profit off of the whole deal. It’s the price we have to pay to play in an open source environment. That’s my two-cents, anyway. What about yours?

[via BGR, TechCrunch]

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  1. Thanks to the bastards at Cisco… ugh.

  2. I guess I wouldn’t have a huge problem with tiered data pricing if VZW and AT&T included text within data like Sprint does. For most there should be no problem with the tiered route. But with on damand video and video calling becoming possible on more and more phones, in the long run it will be just another way for these companies to empty our wallets.

  3. I… still don’t get it. There’s a Verizon tab on the app market app on my Droid 2. I assume they could just use that to surface quality apps, if that’s what they’re trying to do.

  4. Verizon is old native American word for greed.

  5. If this spans across the board to both 3&4g(lte) I see nothing good about it unless they leave the $30 unlimited as an option. How many apps have you seen that give disclaimers on how much data they use.

    My question is if you pay for the nfl app and service to watch games next year are they going to give you unlimited data so you don’t have to worry about stopping the game at half time? If not how are they going to justify charging you for the data service and monthly vcast service and in the end you either get charged for the overages or stop watching a service you pay for.

    I’ve been against tired data ever since they mentioned it but I guess the only thing to do is hope they leave the unlimited as an option(while not raising the price of it).

  6. Heheh Verizon strikes again.
    I wouldnt have Verizon if they were the last cell provider in the world. I got rid of the land line because I was sick of their nonsense.
    They always have their grimeys in their customers pockets.


  7. So big red is using the “its all about choice” reasoning 2 justify this nonsense. I find that quite ironic due to the amount of UNINSTALLABLE bloatware that they stuffed in2 froyo. Where is my choice with that????? Rooting is gonna void the warrenty, right VZW???? I understand (but dont like) them tossing the crapware on there, but the most ridiculous thong about it is that 99% of it u have 2 pay 2 use. So they are forcing useless apps on us, but say that if we want 2 use said bloatware we have 2 pay 4 the forced services??? Hmmmm, what was that about “choice” again big red?…….”Here is your burger sir, u didnt want/ask for cheese, but its on it & if u eat it u have 2 pay extra, and no, im sorry sir, u cant remove that slice of swiss”

  8. Open source is great, but once the carriers and manufacturers put their bloatware and crap onto the device and then lock it down so you can’t even get rid of it, is it still operating within the spirit of open-source software? I don’t have a problem with the distribution of their crapware, but at least let us take the stuff off of the phone…and furthermore, don’t restrict future OTA updates to the phone if you have removed said crapware (a la Droid X).

  9. Someone should remind Verizon that changing the terms of the contract allows all of its users to leave without paying an ETF…

    …and that is just what I will by doing if they try to get one more dime out of me.

    I need to dig out the email I got from Verizon’s head of customer support from 2-3 months ago where he very profusely and steadfastly claimed that there were no plans to move to tiered service.

  10. BS…its all about the benjamins. $$$$$

  11. What is the point of 4G is you can’t use it for video and other high data uses?

  12. Haggie where does it say they want to change the terms of existing contracts?

    The reality is as data usage explodes carries will have to do something. What people like you want is your high data usage subsidized by having users with lower data usage pay the same flat rate as you. I certainly don’t want to pay Verizon any more, and I will definitely consider switching if they don’t give me the options I want (unlimited data plan for very close to what I pay now), but it is reasonable and fair to have users who use much more data pay higher fees.

  13. Verizon’s and AT&T’s “4g” as referred here is NOT 4g. It’s enhanced 3g, let’s clarify that.

  14. @Rob
    It is much closer to 4G that what sprint is advertising.

  15. Great, I read the same thing about sprint going up on their rates too. Well its back to Dixie cups and string for me.

  16. That’s pretty much the major question – why do I need 4g if I run my 2gb limit in a matter of hours without effort. With apps like netflix a single movie will take over 10% of your MONTHLY GOD DAMN LIMIT on AT&T. Basically saying – go wifi or go home (which you probably are, and have a computer 2ft away).

  17. @Rob: when is the last time you got true 3G speeds on your phone without using WiFi? It’s all crap. The terms 3g and 4g are nothing more than marketing ploys.

  18. @ tsanuri

    and you know this because VZ has a 4G network running for the public currently?

    Theoretical speeds in a lab don’t mean shite…Sprint has a currently running 4G network in the real world with real people using it. Not saying VZs isn’t going to be faster but comments like that are just idiotic and have no actual data to back it up. Lets wait and see what they come in with prior to judging.

  19. Interesting. Well, I guess this is where I thank myself for signing that contract to lock in my un-tiered data pricing. If the tiered pricing is outrageously priced, looks like I’ll be switching to Spring and grabbing one of their Android devices! :) Of course I’ll have to move somewhere better than where I live now…Sprint has no coverage here! :P

  20. I just hope that when Verizon does go to tiered data plans, they go the direction they have talked about. Family share tiered data plans and no changes to 3G data.

  21. You guys are all so funny, the majority of folks dont use tons of data, and some people would love a 10, 15 or 20 dollar option to lessen their bill, frankly 29.99 for unlimited is ludicrous, and always has been. Think about most of the nerds you know using their email contantly, web searching, facebook, online school, music DL’s, Video DL’s.
    I know people that carry 3 batteries on them, so that they dont run out during 18hrs of constant usage, you really think its fair for someone to pay 29.99 for 1gb/mo or less of usage when someone else is ripping up 10gb/mo and paying the same amount monthly?…..I dont think so
    even a 49.99 unlimited for those said people is still a “good” deal considering what you are using and consting everyone else….schmucks….

  22. What would be smart is having a tiered data package and allowing you to combine packages for cellphone and tablet.

    Say $15, 20, 30 for different ranges of use. The alternative is having 2 $30 unlimited packages as a requirement for a Android phone and tablet. They have to know that no one is going to spend $60 for internet on your phone and tablet.. with still needing wifi in most homes as well.

  23. I don’t have too much of a problem with tiers if done correctly.. The problem I see with the way it’s done is that you either get a “sweat it” tier that you have to worry about and watch like a hawk.. or you get an “over the top” tier and feel like your wasting money.. They’ve done the same thing with phone minutes for years.. no middle ground, that’s the problem.


  25. So much outrage on here. Drink a couple fewer Venti Caramel Macchiatos in a month and you’ll be able to afford it.

    Life is about choices. You don’t have a Constitutional right to subsidized 3G coverage.

    Verizon hasn’t even announced their new pricing structure. For all you know, they may stick with $30 unlimited plan and make new tiers with limits below that.

  26. When I PURCHASE and OWN an electronic device, let alone one that I must pay a monthly FEE in addition to ridiculous TARIFFS and TAXES in order to USE I find it IRONIC that the carriers will look to GORGE themselves upon the bandwidth the device is supposed to have in the first place!!! Absolutely ridiculous… AT&T did the tiered pricing thingy to cover their asses because they just couldn’t provide the bandwidth to customers, so rather than provide the necessary upgrades, they attempt to deter bandwidth usage and accomplish the same effect. Verizon saw an opportunity to price gouge their customers because, hey!, they have the best coverage – right? No different from when TEXT Messaging took off and became popular, now they will feast upon all the smartphone users until the trade off with customer retention reaches a critical loss/gain then they will ease off. Anyway, Sprint has and will continue to offer the most competitive plans, it is why I’m with them and will stay with them.

    My $.02

  27. Verizon should read these forums. I’ve read several different forums on multiple sites and it sounds like even the mere mention of this change has pissed people off enough to talk about walking. Why would you want a 4g phone if you have to constantly eye your usage? I use my Droid X for literally everything. Guess Im getting a dumphone again. Just as Android was starting to take off its going to be crippled by a greedy carrier. This will only hurt VZW in the long run.

  28. Greedy f√¢kers!!!

  29. Seems to me, that this may just be another way for verizon to take advantage of its customers.. abuse the fact that they are currently the largest carrier around so far.


  31. I will probably switch to another carrier if Verizon follows through with this plan.
    They are always the last to have the best phones and they still have the most expensive prices.

    I would say that their marginal better coverage is not worth the extra dollars.
    Also, ATT and T-mobile are spending $$$ to improve their coverage issues.

    Verizon, people will decide to leave if you do this.

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