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Verizon Communications United States

Verizon Says It Knows You Don't Need Unlimited Data (digitaltrends.com) 222

Ed Oswald, writing for DigitalTrends: While the wireless industry is moving back to unlimited data, one carrier is not. Verizon chief financial officer Fred Shammo told attendees at the Goldman Sachs Communacopia Conference in New York on Thursday that his company doesn't think you need it, and slammed current offerings. "At the end of the day, people don't need unlimited plans," Shammo said. While this is not the first time he's said this -- in March he claimed unlimited data "doesn't work in an LTE environment," and in 2011 he helped Verizon move away from unlimited plans -- it's now an entirely different market.
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Verizon Says It Knows You Don't Need Unlimited Data

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  • I'm only level 23 and I need those pokemon NOW!

  • by captaindomon ( 870655 ) on Thursday September 22, 2016 @05:19PM (#52942369)
    I would rather know what I am using and pay for what I use in at least a somewhat transparent fashion, than pay the exact same as all other customers and never really know what I am paying for. Verizon's system for me has been reliable and fast, and I pay for it, which I'm happy to do.
    • The entire concept of paying per multiple of bytes is ridiculous anyway. Maybe Verizon customers will decide this clown doesn't need their money.
      • Re:Makes more sense (Score:5, Interesting)

        by bondsbw ( 888959 ) on Thursday September 22, 2016 @05:37PM (#52942527)

        I'm not sure why you think so, it's pretty standard to pay according to what you consume when supply (capacity) is limited. It would be silly to say:

        The entire concept of paying per multiple of gallons of gasoline is ridiculous anyway.

        or

        The entire concept of paying per multiple of hamburgers is ridiculous anyway.

        • by msauve ( 701917 )
          "The entire concept of paying per multiple of hamburgers is ridiculous anyway."

          But, I will gladly pay you Tuesday for a hamburger today.
          • But, I will gladly pay you Tuesday for a hamburger today.

            "There are some things money can't buy. For everything else there's WimpyCard."

            It's amusing to see how going into short-term debt for fast food has become the norm since the Popeye era.

        • by maugle ( 1369813 )
          I prefer to think of it as a pay-by-weight buffet. Except every single item you put on your plate comes with a 10-pound piece of hardtack plastered with advertising.
        • Physical good analogies don't work here. Your gasoline or burger costs money to be created. Verizon isn't creative the data on the network so there is zero cost to Verizon for the data transiting their network. The cost of data transit is not a per data amount so charging that way is pure profit for Verizon
          • by Karlt1 ( 231423 )

            How is the cost of data 0? The more data that people use in aggregate, the more capacity that Verizon has to build or everyone's data slows down. When the last mile is terrestrial, if they are willing to throw money at the problem, they can always build enough capacity. But cellular is different.

            There is a hard limit on the amount of data that can be transmitted over a certain amount of bandwidth and only certain bands are well suited and allowed for cellular data. Verizon could build more towers and redu

            • The cost of the data to Verizon is zero. They didn't spend a dime to put YouTubes videos online for me to stream over Verizon s network. Congestion on the network is a real issue but unrelated to a per GB charge. nothing stops them from simply slowing speeds on a congested tower. Which solves that problem, but doesn't make them money. There is so far no evidence of the significant limits claimed by Verizon. Not the theoretical, but actual on the network.
            • by pla ( 258480 )
              The more data that people use in aggregate, the more capacity that Verizon has to build or everyone's data slows down.

              Bandwidth does not equal monthly usage.

              If Verizon said "we want to implement a time-of-day based surcharge to help reduce network congestion", we could reasonably discuss the merits of using financial rather than technical means of throttling heavy users.

              Charging me per GB of 2am Windows updates, however, counts as nothing short of rent seeking via regulatory capture. Every single un
          • The charge for data transit is pure profit for Verizon only if the network infrastructure they spend money on is pure loss. Obviously, Verizon isn't going to take that sort of financial hit without getting something for it, so they're going to have to charge their customers somehow. Verizon has to decide how much bandwidth to build, and the more people use the more Verizon has to supply and pay for.

            So, how does Verizon decide how much to build? Mostly, Verizon will estimate what it needs to supply at

        • by amiga3D ( 567632 ) on Friday September 23, 2016 @07:46AM (#52945807)

          I don't need unlimited data. I just need data that isn't 5,000% overpriced.

        • I'm not sure why you think so, it's pretty standard to pay according to what you consume when supply (capacity) is limited.

          I agree that for consumables it makes sense. I pay x dollars a gallon for water and n dollars per kilowatt hour of electricity at home. I would agree that "pay for what you consume" makes sense for broadband, both mobile and at home, if the charges themselves actually made sense. Even $0.05 per text is absurd, considering each message is a low-bandwidth near-tweet using a (formerly or mostly) empty emergency channel. The "true" cost per tweet is negligible. Similarly with broadband, the "true" cost of a gig

        • by pla ( 258480 )
          The entire concept of paying per multiple of hamburgers is ridiculous anyway.

          I know, right? Because, just like bandwidth, hamburgers come off an endless conveyor-belt steadily spitting out X million hamburgers per second and each one that doesn't get scooped up and eaten goes to waste forever!
    • I would rather know what I am using and pay for what I use in at least a somewhat transparent fashion, than pay the exact same as all other customers and never really know what I am paying for. Verizon's system for me has been reliable and fast, and I pay for it, which I'm happy to do.

      You may want to look at Project Fi, though I can't comment on the reliability.
      https://fi.google.com/about/plan/

    • With Verizon, they don't even know how much data you're using [cleveland.com], but they'll be glad to charge for more.

    • The problem is the particular business model they use: impose a specific cap based upon the plan, and then charge large overage rates if you go over.

      If it were just a matter of paying a base charge and then paying per GB (or similar) used, then it might make sense. Those overage rates, however, make the model problematic at best. Especially when they fail to notify [patch.com] customers that they're getting close to their quota.

  • How about, if you have to have caps, you simply throttle speeds so that emails and navigation are still possible, rather than gouging people on overage charges?
    • by ArtemaOne ( 1300025 ) on Thursday September 22, 2016 @05:49PM (#52942595)
      That's how their plan works starting recently (if you convert to the new one). I ended up saving about $30 a month and have rollover data and if I use it all up I get throttled instead of charged. You complained about them not having their exact current plan.
      • Good catch.

        I recently called about an account issue and they offered to "upgrade" my prepaid account. That is, they put me on the current offering that I was already paying for, rather than the old offering, which had less data. It looks like the "always on" data was part of the deal. I wish they'd just give you the best deal you're already paying for automatically.
  • by Austerity Empowers ( 669817 ) on Thursday September 22, 2016 @05:30PM (#52942485)

    Unlimited data requires infinite bandwidth which requires infinite power. We definitely don't need unlimited data.

    We need max LTE bandwidth 24x7.

  • But he has a point! (Score:5, Interesting)

    by Anonymous Coward on Thursday September 22, 2016 @05:33PM (#52942503)

    People don't "need" unlimited data, what they need is "unmetered" data.

    In a LTE environment, someone can saturate the hell out of the cell and thus render everyone in a one mile radius of it unable to use it. That is the tradeoff of CDMA-based technology (LTE is a CDMA technology) TDMA-based do not have this limitation because you're limited to a time slot. TDMA however doesn't allow for low-latency applications and the more users there are, it slows down for everyone equally. So TDMA forces carriers to actually have enough capacity, while CDMA only forces carriers to make cells small enough to not be blown away by one user monopolizing it.

    At the end of the day, "unmetered" is what all carriers should be aiming for, and only differentiating their plans by bandwidth pipes. eg a GSM/LTE 5G path would allow users to pay for "voice","voice, text and data", or "voice, text, data, video" or "voice, text, data, video 4K" Someone paying for a "4K" connection and not using it with a 4K TV still gets the bandwidth of a 4K connection to use, but a "IPTV" offering by the same carrier would suck up all the bandwidth allocated. 4K would be kinda wasteful on LTE, but beside the point.

    Same with landlines. It doesn't matter that fibre is in the neighborhood, you want to differentiate the plan based on what the user intends:
    A) 4$/mo Home security (approximately 5Mbps, bi-directional, good enough for a single HD stream at 10fps)
    B) 15$/mo Basic Internet (Asymmetric 25mbps down, 5 up, good enough for two 1080p HD streams at 30fps or one 60fps (ATSC is 19Mbps, ATSC QAM-256 Cable is 38.8)
    C) 25$/mo Basic Internet Family (Symmetric 80mbps, good enough for two 4K streams or 4 HD streams, essentially "4 20Mbps streams")
    D) 50$/mo Deluxe Internet (Symmetric 160mbps, 4 4K streams, good enough to have family members stream to each other at 4K television quality)
    E) 100$/mo Professional Internet ( Symmetric 1Gbit , basically capacity for 25 4K channels, or 100 HD channels, simultanously, basically this option is "I'm hosting everything at home, the cloud hosting can bite me")

    In the case of C,D and E, it's assumed that people would be doing backups over the internet, likely to other family member locations, if not a cloud service. Once you get over 100Mbps it becomes viable to do so. So if you live in Seattle and your family lives in New York, you could effectively use each other as a backup and cut all the cloud storage providers out of the picture.

    So when you're on your LTE device, you can access the storage from either location or while on the road.

    Captcha: asinine

    • Verizon does offer unlimited data in that they don't cut you off when you've reached your 2GB - it's just that your speed becomes slower. So if you have been using your data on the road for VOIP calls and run out, the quality may drop, but you can still use your phone's GPS to get to Uptown
  • ...as some may call it.
  • What we don't need is fees _after_ we use a service. I'm fine with data caps, but there needs to be a popup where you confirm the charges for the additional data, and each additional charge, not afterwards when you get slammed with a $300 bill.

    There's an oligopoly of wireless companies and they all primarily use a model where you get billed _afterwards_ for as much as they can trick you into using. And you always pay far more for "overages" than the same service cost if paid upfront. And of course they d

    • I have an AT&T account, and a family member pushed us over our 15 GB one month. I kept getting notifications: "you're getting close to using your 15 GB" "you've gone over your fifteen GB and we're charging you for another GB", "your'e getting close to using up the GB we just sold you", "you used it up and we're charging you for another one" I don't know how Verizon does it, but AT&T gives me plenty of warning about using excess data in time for me to do something if I want.

      • ...So? It's been generally this way for 50 years. The fact that you have a recent and inadequate counter example doesn't mean you're right.

  • by iCEBaLM ( 34905 ) on Thursday September 22, 2016 @05:45PM (#52942575)

    Nobody needs unlimited data, because nobody can use infinite amounts of data, they just need as much data as they use.

    The problem is, nobody knows how much they need, because it's impossible for the average person to gauge data usage.

    How much data does going to facebooks website take? Will I get the regular version of the site or the mobile version? Do I have a lot of pictures posted on my wall this time or not? How many times will I go there? Does my provider count facebook data against me or is it included in some fucked up social media exclusion promo? That's just one website. Throw in youtube, netflix, music streaming, mobile gaming, how is anyone supposed to fucking know what they need?

    That's why everyone wants unlimited plans, so they don't have to worry about it.

    • Instead of counting megabytes, like we used to count sms messages or minutes, just give unlimited usage, but limit the max speed. want the fastest possible speed, pay the highest price. lowest speed, lowest price. billing would be simple, but then there's no money made in simple billing.
      • To go this way you would need some way to actually offer something resembling advertised speeds to all customers. Unfortunately signal strength would put some of them permanently in the lowest tier and then they would complain that they dont get what they paid for - technical limitations dont work for this kind of people (and actually why should normal user need to "measure" their own maximum net speed?)

    • it's impossible for the average person to gauge data usage.

      In a comment to a post on the BlockAdblock blog, I suggested how to fix this at the level of the user agent. A browser can establish a 1 MB quota for each page view, pause the page's connection once the quota runs out, and give the user "Add 1 MB" and "Add 10 MB" buttons to resume downloading.

  • unlimited voice minutes and unlimited text messaging or nationwide calling or ...
  • I'm with Shamu, here. Pay for what you use, instead of trying to squeeze an "unlimited" square peg into a finite round hole.

    So Verizon just needs to bill $0.001 for every MB used, and everyone would be happy. No bullshit about tiers, overages, etc. If you're on WiFi all month, your cell bill would be $0. After all... "At the end of the day, carriers don't need tiered plans." Tiered data just "doesn't work in an LTE environment."

    That leaves some paperwork/billing issues, but they're easily solved by on

  • Unless Verizoncan offer a metered plan with SIGNIFICANTTLY HUMONGUS savings compared to the unlimited competition, I'll choose unlimited any time.

    Otherwise, the first time I slip up with an OTA update, the choice of a slightly more expensive unlimited plan will pay for itself.

    Besides, peace of mind has no price.

    Besides, is more easy to do our financial planning with a constant quantity than a variable one.

    Besides, who knows what services can catch my eye tomorrow, either as a passing fad (leading to a coupl

  • It is what they find convenient or desirable, which is to use the service to the capacity that is being offered without concern about the details of the frequency or amount one is using it, and not getting surprised later on with higher overage charges than one was expecting.

    I have unlimited nationwide roaming and long distance on my cell phone plan, and it's kinda nice to be able to freely use my phone wherever I am without worrying about any long distance charges that would otherwise apply.

    With so-ca

  • I'll settle for Kbps x 2.6 Gb per month.

  • the commons that is. The air waves. If we don't feel Verizon is doing a good enough job shepherding them then I don't see any reason to leave them in charge (outside of outdated notions of ownership that ought not to apply to a natural resource like airwaves).
  • Frankly, I don't need data period. I am around WiFi most of the time and can download music to listen to while driving.

    However, I want unlimited data and selling people the things that they want is how capitalism works. Enjoy seeing T-mobile erode your market share.

    • by tepples ( 727027 )

      I am around WiFi most of the time and can download music to listen to while driving.

      And you pay a lot of money for that car insurance. My cousin doesn't drive because when he shopped for car insurance, he got quotes that by themselves are more expensive than a monthly bus pass, even without counting fuel and maintenance.

      Point is that a lot of people ride the bus, and they expect to use that time productively.

  • Verizon and the rest assume that nobody needs that much data because the phone companies make you pay out the ass for any kind of reasonable mobile data. So I never use it unless in an emergency or trying to get a bus schedule (trackthet.com works quite well) in Boston. I'm halfway into my data plan and I've used 249MB for the month. I'll use WiFi or go without.

    It doesn't matter what service - vzn, t-mobile, sprint, whatever. I'll only use their mobile data under duress.

    4G is useless.

    --
    BMO

    • by b0bby ( 201198 )

      You should look at Cricket. I have their basic plan, $35/mo on autopay; unlimited talk and text, and 2.5GB of 4G data over AT&T towers. Now, that data is limited to something like 8Mbps I think, which is plenty fast for me, and if I ever hit the limit (I never have, but my kids have on theirs) I'll be throttled to 128kbps which is still enough to stream Pandora or run Waze. I know exactly how much I'm going to be paying each month, I can use whatever unlocked GSM phone I want, and i can switch at the dr

  • Hey there Mr. CFO. Time for some lessons in business. First of all, customers don't like to be told what they need and don't need. If demand exists, you provide. Or you lose customers to those who are willing to listen to demand.

    The more critical lesson here is humans don't like limits. Perhaps this would be more obvious to you if your Board of Directors suddenly announced salary and bonus caps for all executives at half your current rate. You know, because one "doesn't need" to be paid more than they

  • Having as much data as you want changes usage patterns. I stream music and movies on my PC, and never would dream of it on my phone with Verizon. The *second* another carrier has the same coverage - Verizon is going to bleed customers who decide "actually I do want to use my phone to stream media". Since Verizon markets streaming media apps - they are feeding the very hunger that will take away customers who want to see those promises delivered on.
  • Let me keep what I don't use then. If I used 2gb of my 4gb, let me rollover the 2 remaining to the next month and so on and so forth. If in 3 years I have 50GB free so be it, I paid for it.

  • That's why I prefer unlimited data. It's not because I plan on consuming unlimited amounts of it, but I do want to be able to go to work, plug in the headphones, and not have to think about my data plan when I decide if I want to stream music or listen to music I already bought.

    Companies can make up what I "need", but the bottom line is that if your competitor offers a service that makes me happier, as in same quality and I never have to think about billing again, then I'm not your customer anymore.

  • then there's only profit to be made if they are buying it anyway...
  • I was once a Verizon customer, many years ago. (Actually, I started off with AmeriTech who they took over.) Back then, it was all about your analog cellular minutes per month in your plan. Even then, Verizon became unworkable for me because as I used my phone heavily for business and personal use, I kept racking up more minutes of usage in a month than my plan had. Overages were billed at something outrageous like 25 cents per minute.

    I called Verizon's customer service at one point, saying basically; "He

  • There's really no mystery to this: Verizon is sticking to that unconvincing party line, because they're between the proverbial rock and a hard place. The restrictions they agreed to when they purchased their Block C spectrum license state that they're not permitted to restrict the ways in which you use your data connection on their wireless network; if you want to tether your BitTorrent PC to your Verizon Wireless cell phone and let it saturate that connection 24/7, they can't stop you -- they quite literal

  • If you don't need unlimited data (hint: It's true. You may need a lot of data, but with a limited bandwidth you cannot even use unlimited data), they don't need to limit it, as you won't use it anyway.

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