Dear Visitor,

Our system has found that you are using an ad-blocking browser add-on.

We just wanted to let you know that our site content is, of course, available to you absolutely free of charge.

Our ads are the only way we have to be able to bring you the latest high-quality content, which is written by professional journalists, with the help of editors, graphic designers, and our site production and I.T. staff, as well as many other talented people who work around the clock for this site.

So, we ask you to add this site to your Ad Blocker’s "white list" or to simply disable your Ad Blocker while visiting this site.

Continue on this site freely
  HOME     MENU     SEARCH     NEWSLETTER    
CUSTOMER RELATIONSHIP MANAGEMENT NEWS. UPDATED 4 MINUTES AGO.
You are here: Home / Mobile Tech / Tiered Data Plans To Start at Verizon
Tiered Data Plans Will Begin at Verizon Next Month
Tiered Data Plans Will Begin at Verizon Next Month
By Mark Long / CRM Daily Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JUNE
21
2011
Verizon Wireless confirmed Tuesday that the carrier will move from unlimited to tiered data plans, beginning next month. The change won't have an immediate impact on subscribers currently under contract, but new customers and renewing subscribers will need to choose from a slate of data-capped options at prices to be announced next month.

Verizon's looming switchover comes as mobile data usage continues to grow at an astounding pace. According to a new survey by Nielsen, smartphone owners -- especially those with iPhones and Android-powered devices -- are consuming more data than ever.

"This has huge implications for carriers, since the proportion of smartphone owners is also increasing dramatically," the firm's researchers wrote in a recent blog. "Currently, 37 percent of all mobile subscribers in the United States have smartphones."

An Opportunity for Sprint

Some industry observers believe Verizon's move will encourage some customers to switch from smartphones to Wi-Fi-only media tablets to reduce monthly costs. However, the full impact of the change isn't likely to register immediately with the majority of Verizon subscribers.

"Given the nature of contacts, this won't impact current individual-liable subscribers in the near term -- until those contracts expire," noted Lisa Pierce, an independent analyst at the Strategic Networks Group. "For the same reason, it won't have any immediate impact on corporate-liable subscribers."

Longer term, Verizon subscribers' use of Wi-Fi will undoubtedly increase, Pierce observed. "I highly doubt that Sprint will move away from offering an 'all you can eat' plan, so that's another alternative," she added.

There is reason to think that Sprint Nextel will benefit from Verizon's switch to tiered data plans. According to the latest American Consumer Satisfaction Index (ACSI), Sprint tied with Verizon with a 72 score -- the highest reported among the major U.S. wireless carriers.

However, Verizon dipped one percent for the second straight year, while Sprint's score has risen 15 points over the past three years and now claims a share of the industry lead. What's more, in the wake of the proposed merger announcement by AT&T and T-Mobile the ACSI scores of both carriers fell four percent to 66 and 70, respectively.

For AT&T it was the worst score since 2006 -- the year before the carrier's launch of the first iPhone. "Assuming the [merger] deal is approved, it remains to be seen if a much larger AT&T can regain the strength of its customer relationships," said Claes Fornell, who founded the ACSI at the University of Michigan's Ross School of Business.

Data Deluge

According to Nielsen, the amount of data consumed by the average smartphone user each month grew 89 percent to 435MB in the first quarter, compared to year-earlier results. "A look at the distribution of data consumption is even more shocking," Nielsen researchers wrote.

Data usage for the top 10 percent and one percent of smartphone users rose 109 percent and 155 percent, respectively. What's more, devices running Apple's iOS and Google's Android platform are clearly driving the upsurge.

Mobile subscribers with Android-based smartphones consumed an average of 582MB per month, while the average iPhone user consumed 492MB. Nielsen also noted that monthly mobile data consumption among Windows Phone 7 users doubled over the past two quarters, "perhaps due to growth in the number of applications available," the firm's researchers suggested.

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
MORE IN MOBILE TECH

NETWORK SECURITY SPOTLIGHT
A security researcher has found that hundreds of different models of HP notebooks, tablets, and other devices include a keylogger that could track and record every keystroke a user makes.

CRM DAILY
NEWSFACTOR NETWORK SITES
NEWSFACTOR SERVICES
© Copyright 2017 NewsFactor Network. All rights reserved. Member of Accuserve Ad Network.