Verizon's new data plans broken down in complete detail
Having a hard time wrapping your head around the upcoming changes to Verizon's smartphone data plans? We just got all the dirty details dropped in our laps. Charts, e-mails, the whole kit and kaboodle, folks. — Let's start with what you see above.
Context & Ripple Effects
Two days after Droid Life reported that tiered plans were headed to Verizon on July 7 with packages starting at $30 for 2GB, Android Central has published the full breakdown — charts and internal e-mails spelling out exactly how Verizon will meter smartphone data once unlimited goes away.
The move lands on a carrier riding momentum: Chitika ad-network data showed Verizon took 12% of the U.S. iPhone market within a month of carrying the device, and the company has committed to expanding its 4G LTE network to 145 markets by the end of 2011. The timing detail worth noting is that Verizon extended its free 4G hotspot promotion one final time through July 6 — the day before the new pricing takes effect.
First-order effects
- Verizon smartphone customers lose flat-rate unlimited data on July 7 and face metered packages starting at $30 for 2GB, with heavier users paying progressively more.
- The free 4G hotspot perk ends after July 6, so Thunderbolt and other LTE owners who have been using tethering at no charge must fold it into paid plan decisions immediately.
Second-order effects
- With LTE speeds making 2GB easy to burn through, Verizon's own 145-market expansion push turns its cap structure into the main purchase consideration for iPhone and Android buyers choosing between carriers.
- Carriers still advertising unlimited smartphone data now face a pricing benchmark set by the largest U.S. carrier, pressuring them to either match the tiering or compete explicitly on the unlimited promise.
Third-order effects
- If the pattern holds, usage-based pricing becomes the default structure for U.S. mobile data, tying carrier revenue directly to consumption and making network capacity investment — like the LTE buildout — the basis on which plans are designed rather than an all-you-can-eat flat rate.
The trend: U.S. carriers are dismantling unlimited flat-rate data in favor of metered tiers as their LTE networks scale, with Verizon's July 7 switch marking the decisive turn.