Verizon Says Customers Don't Need Unlimited Data Plans
Majority of the U.S. mobile operators are moving toward unlimited data plans. However, Verizon Wireless says that mobile device users in the country do not the service.
During the Goldman Sachs Communacopia Conference in New York on Sept. 22, Fran Shammo, the Chief Financial Officer of Verizon, slammed the doors on unlimited data for its customers.
"At the end of the day, people don't need unlimited plans," said Shammo.
This is not the first time Shammo has rejected the idea of offering unlimited data to customers. In March this year, he said unlimited data "doesn't work in an LTE environment." In 2011, Shammo also helped the carrier move from unlimited plans.
In mid-August this year, John Legere, CEO and president of T-Mobile, announced the T-Mobile One unlimited plan.
"The era of the data plan is over. After Un-carrier 12, the wireless industry will never be the same again," said Legere.
"Only T-Mobile's network can handle something as huge as destroying data limits," added Legere. "Dumb and Dumber can't do this. They've been running away from unlimited data for years now, because they built their networks for phone calls, not for how people use smartphones today. I hope AT&T and Verizon try to follow us. In fact, I challenge them to try."
On Aug. 18, Sprint also announced the launch of a plan that offered two lines with unlimited talk, text and data for $100 per month.
"Wireless customers want simple, worry-free and affordable wireless plans on a reliable network," said Marcelo Claure, CEO and president of Sprint. "There can be a lot of frustration and confusion around wireless offers, with too much focus on gigabytes and extra charges. Our answer is the simplicity of Unlimited Freedom. Now customers can watch their favorite movies and videos and stream an unlimited playlist at an amazing price."
In early September this year, AT&T also confirmed that its customers will not have to worry about data caps while streaming content from DirecTV on a mobile device.
"You can stream video via your DirecTV or U-verse App without using your mobile data when you're on the go with Data Free TV on the AT&T mobile wireless network. It's easy and automatic after registering and it doesn't count against your AT&T mobile data allotment," says AT&T.
Verizon offers 20 GB of data (shared between four lines) at a monthly cost of $160. The network believes that users tend to abuse unlimited data plans and as a business, there is no way of being profitable by giving such services to customers.
Data has become very important for people on the go. Customers like watching movies, listening to music and doing other activities that consume data. No customer would want data cap. In a competitive market, all the top four carriers want to attract more and more subscribers with competitive services.
In the end, it remains to be seen if Verizon feels the pressure from rivals and start offering unlimited data plans in the near term.
Photo: Mike Mozart | Flickr