According to Verizon’s (NASDAQ:VZ) new data plans announced on Friday, customers have to pay the full cost of the smartphone, to continue using the service, The plans will come to effect from August 13th, and customers will be able to stay with the current plans or move to new ones with “some restrictions.”
The data plans are available in four forms: Small: $30/month for 1GB of shareable data; Medium: $45/month for 3GB of shareable data; Large: $60/month for 6GB of shareable data and X-Large: $80/month for 12GB of shareable data. Customers will have only two options when buying a smartphone, either pay the full retail price of in small installments. Earlier, Verizon used to have 15 different kinds of plans with options for individuals.
“We’re simplifying the experience of choosing a wireless plan by focusing on what customers say matters to them most,” said Verizon spokesman Chick Hamby. Company’s vice-president of consumer pricing Rob Miller said in a statement:
“Choosing a wireless plan is now easier than ever. Customers said they don’t want to have to do a lot of math to figure out their best options, and we heard them. A plan with small, medium, large and x-large choices makes sense for the way people actually use their wireless service.”
Verizon is taking a cue from T-Mobile’s move by ending subsidized phones and streamlining data plans. The new prices are likely to save customers $20 a month, but will vary on the type of plans. Users can pay $20/month per smartphone, $10/month for tablets or Jetpack mobile hotspots and $5/month for “connected devices” like smartphones.
However, these plans have their own disadvantages as customers with family plans of 6GB will see a $5 increase, and this will further add up in the case of multiple lines. The company has withdrawn its 500-megabyte plan, priced at $20. This was considered as a good plan for older customers, who are not heavy data users.
Verizon mentioned that it wanted to clear up its confusion between megabyte and gigabyte, to stick with one standard in its plans. Rob Miller, vice president of pricing and promotion said that they will watch the new plans closely, and apply any changes in case of a huge market demand.[ Source ]