As most (if not all) of you are aware, Verizon has been slowly altering their data plans over the past couple of years. They have been eliminating old ones and are introducing new ones that rarely benefit the customer, but instead benefit Verizon's profit margins. Apparently, that difference may be more pronounced than we thought. According to a minor analysis of Verizon's most recent earnings call, Verizon's costs associated with delivering data continue to go down, even as they are increasing costs to most of their customers. Here's a quote with some of the details,
Now, of course we don't fault a company for trying to earn a profit. After-all it would be silly to operate a business that does not generate profit. That would be a charity. Also, between heavy pension costs and Hurricane Sandy repairs, Verizon actually took a loss last year. Still, sometimes it's hard not to think that Big Red is taking advantage a little bit, especially because they claim that their data plans are designed to minimize network clogging. That has always seemed like a lame excuse, and is even more so, realizing that their 4G network is 5 times more efficient than their 3G network.As [The New York Times’ BrianX] Chen noted, Verizon’s average monthly revenue per wireless account grew 6.6% to $146.80 in the holiday quarter. The main reason for the growth is simple: 23% of Verizon’s wireless accounts are now subscribed to Share Everything plans.
The beauty of Verizon’s new plans, as the report points out, is that data is getting cheaper for Verizon to transmit even though the carrier is charging more for it. “The company says the 4G LTE network is five times more efficient than its predecessor, 3G,” Chen wrote. ”That means the more people who buy devices that connect to the newer network, like the iPhone 5, the more money the company will eventually gain.”
As an added bonus, Chen noted that Verizon’s faster data networks also cause users to eat through their data allowances more quickly. This eventually prompts them to buy more expensive plans with higher data caps, which of course net Verizon even more cash. ~ BGR
There comes a point when "min-maxing" just seems shady. Also, perhaps it would be an easier pill to swallow if VZW didn't shovel "horse-crap" excuses along with their policies. Share your perspective.