Carriers
AT&T and Verizon signal that unlimited data plans may come to an end someday
March 12, 2010 | by Andrew Kameka
AT&T, Verizon
The days of downloading web content and uploading videos from mobile devices to YouTube without caring about costs may eventually come to an end. That’s the lesson to gather based on recent comments from executives at both AT&T and Verizon.
Last week, AT&T Chief Executive Randall Stephenson said that a transition to “variable pricing” was in the cards for his company. Stephenson suggested that “heavy-use consumers will pay more than the lower consumers,” meaning AT&T subscribers could eventually have to weigh whether or not they want to keep streaming Pandora or Slacker knowing that it would increase their monthly data charges.
Verizon CTO Anthony Melone expressed a similar sentiment to the Wall Street Journal, saying that “as much data as you can consume is the big issue that has to change.” Melone suggested that when Verizon begins offering 4G in mid-2011, unlimited data plans is something that the company may revisit and change.
Current subscribers with unlimited data plans on AT&T or Verizon don’t have to worry at the moment. Both companies are several months or a year away from changing their policy to get rid of unlimited data plans. Such a move would also constitute a change substantial enough for subscribers to break their contracts without penalty. However, this news is discouraging in light of the progress consumers expected as technology advanced. Rather than enjoy their new high-speed networks, AT&T and Verizon customers might have to start monitoring their data usage to ensure that their favorite mobile activities don’t lead to major bill increases.
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YAY! I missed the days of paying for use. AOL rocked when I only had x minutes of usage and outrageous per minute overages. granted broadband is an always on connection so the only other way they can nail us is with per byte billing.
a load of crap is what it is.
I'm all for it. I use about 200 megs of data a month, so why should I pay to subsidize the 1% of people who are streaming HD tv to their phones? I want the iPad 500 meg plan for my iPhone. That would save me 30 bucks a month. The only people who don't like this idea are the people with crazy bandwidth requirements, but they also seem to be the most vocal.
You seem to be under the assumption that they would want to lower rates for "low use" data customers.
Very sad.
Honestly I nver thought about how much I actually use. I guess I used 2BG last month! I do listen to lots of streaming music …. beyond that not sure how I could pull this off!
It's just another attempt by big companies to squeeze more and more revenue out of consumers. Thanks for making our standard of living a little worse!
Verizon doesn't have an unlimited data package….It is maxed out at 5gb….even though it says it is "unlimited"…
@unlimited You’re wrong about that, I know people that go over 5 gigs every month and don’t get charged, and I have myself. I believe the 5 gig cap is for tethering restrictions.
@jared Verizon has unlimited data for phones only, modems, mifi, etc. Don’t have unlimited data, there is a 250mb and a 5gb (which at one point was unlimited) plans.
I would actually consider going to Sprint or T-Mobile if Verizon did this and they didn't.
I believe most companies have a cap of 5Gb on data usage, and I know tmobile will throttle you when you are reaching the limit but they wont charge you extra. Personally I dont use much data but I hate the idea of having to pay more at the times when I will use a lot, such as when flash becomes available and I begin streaming Hulu to my phone. But im with sprint and their amazing network so I don’t have to worry about it.
There isn't a 5 gig data limit for the unlimited plan on verizon. Use facts instead of hearsay when posting.
That is right, the only cap for Verizon is 5gb on tethering. There is no cap on hand held device internet usage.
Well no surprise here. Unlimited data was a market anomaly that was only viable when no one actually used mobile data. No one really expected ATT and VZW to subsidize mobile Pandora users forever did they? So what my media friends need to ask themselves now is how does the use of mobile streaming media change when the consumer knows they’re paying for it on a minute by minute basis?