Verizon's iPhone Honeymoon Ends: Tiered Data Plans This Summer

By  |  Tuesday, March 1, 2011 at 8:03 pm

As expected, Verizon will phase out the unlimited data plans currently available to iPhone customers, instead opting for a tiered data plan structure. The change will come around the time of the new iPhone on the carrier, expected this summer. The comments were made by Verizon chief financial officer Fran Shammo at a tech investor conference sponsored by Morgan Stanley.

Interestingly enough, Shammo did not mince words when she spoke about the introduction of a new iPhone model. Verizon fully expects a backlash from customers under contract with an iPhone model that was made obsolete within months of its release. In addition, the new iPhone wouldn’t be financially beneficial to the carrier: margins would be much less.

Call me crazy, but isn’t this a good reason why Verizon should have just waited a few months to prevent pissed-off customers? Then again, I guess they must have seen something in their customer base that told them the benefits of releasing the phone outweighed the negatives–and certainly what we’ve seen from actual numbers show that there was definitely a pent-up demand for Apple’s iconic device.


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5 Comments For This Post

  1. Devin Says:

    The benefits would be that they lock in anyone that absolutely "needs" an iPhone right now for two years, then double-dip on that same customer when they "need" the new iPhone. Contrary to popular belief, there is a lot less consumer backlash these days. People complain, but it really doesn't stop or prevent traditional consumers from following in others' footsteps.

    Case in point, the new iPhone 3GS (AT&T) had an issue with reception and not really having good service in areas outside of a metropolis. That didn't stop people from buying them, then complaining about their reception even though it was a known issue from the start.

    I guess long story short, Verizon doesn't care because there will be no backlash.

  2. Dave Says:

    I have a feeling that Verizon will let iPhone 4 users keep their unlimited plan until at least until their contract is over. Otherwise, their contract is void for changing its terms. It might be a good reason to buy the iPhone 4 if you do not need the probable faster dual core cpu.

  3. Aaron Says:

    That's precisely why I bought my iPhone 4 when I did, because I thought I would be grandfathered in to the unlimited data plan. But now the joke may be on me, because I didn't read the contract. I don't even know if the contract allows them to change the terms like this… hopefully not.

  4. Elizabeth Rhoads Says:

    Did u read the contract I want to get the unimited iphone verison for my daughter! Hep anyone???

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