opinions on new pricing tiers

[zak406]

If they want to charge more for data, then they should make it for the hotspot feature. if you have 8 devices running at the same time would chew up a lot more usage than a single phone would.

I agree but it boils down to this fact, at the end of this year it will only cover 70% of the nation. I am 20 and run a small landscaping business in the summer, do you think my customers would pay me full price to only cut 70% of there yard? SO why should I pay verizon more for something that is less established than 3g, 30% less established!

If you buy a smart phone today from Verizon, you are required to buy a $29.99 data plan - regardless of whether or not you live in a 3G covered area or plan to use the phone in a 3G covered area.

Verizon has to make money to pay for the expansion of the 4G coverage. Everyone is paying for that - even if they never plan to use 4G. Just like when you buy a new lawn mower - you pass that cost on to your clients with increased per cut costs - even if the lawn you are mowing is being mowed with an older mower. You don't charge different prices based on mowing someone's lawn with a new mower or an older mower.

Thats true, however if thats the case then shouldnt verizons 3g price of 29.99 a month already cover there 4g expansion? Plan ahead correct? Like you said I could use a 20 year old lawn tractor, or a 10000 dollar zero turn I still charge the same price?

 

[madkoda]

so if i understand all this correctly..the thunderbolt will launch with the tiered data plans? or will it start out with unlimited data first than tiered plans come later on?

 

[StinkyPete]

I agree but it boils down to this fact, at the end of this year it will only cover 70% of the nation. I am 20 and run a small landscaping business in the summer, do you think my customers would pay me full price to only cut 70% of there yard? SO why should I pay verizon more for something that is less established than 3g, 30% less established!

If you buy a smart phone today from Verizon, you are required to buy a $29.99 data plan - regardless of whether or not you live in a 3G covered area or plan to use the phone in a 3G covered area.

Verizon has to make money to pay for the expansion of the 4G coverage. Everyone is paying for that - even if they never plan to use 4G. Just like when you buy a new lawn mower - you pass that cost on to your clients with increased per cut costs - even if the lawn you are mowing is being mowed with an older mower. You don't charge different prices based on mowing someone's lawn with a new mower or an older mower.

Thats true, however if thats the case then shouldnt verizons 3g price of 29.99 a month already cover there 4g expansion? Plan ahead correct? Like you said I could use a 20 year old lawn tractor, or a 10000 dollar zero turn I still charge the same price?

Sort of a chicken and egg situation... and I know that money from one revenue stream doesn't go exclusively to pay for a specific cost center (it all essentially goes into one pot).

But in the end, the business needs to bring in revenue to pay for day-to-day expenses and then also to either
(a) expand the business further - like making capital investments (4G)
or
(b) return it to the shareholders (pay dividends).

We all have the ability to jump ship and use one of the other providers out there if we don't like the price Verizon is setting.

 

[StinkyPete]

so if i understand all this correctly..the thunderbolt will launch with the tiered data plans? or will it start out with unlimited data first than tiered plans come later on?

The Verizon CFO seemed to indicate today that it would launch with new data pricing. It could be just the 4G/LTE side of things as opposed to 3G...

 

[zak406]

If you buy a smart phone today from Verizon, you are required to buy a $29.99 data plan - regardless of whether or not you live in a 3G covered area or plan to use the phone in a 3G covered area.

Verizon has to make money to pay for the expansion of the 4G coverage. Everyone is paying for that - even if they never plan to use 4G. Just like when you buy a new lawn mower - you pass that cost on to your clients with increased per cut costs - even if the lawn you are mowing is being mowed with an older mower. You don't charge different prices based on mowing someone's lawn with a new mower or an older mower.

Thats true, however if thats the case then shouldnt verizons 3g price of 29.99 a month already cover there 4g expansion? Plan ahead correct? Like you said I could use a 20 year old lawn tractor, or a 10000 dollar zero turn I still charge the same price?

Sort of a chicken and egg situation... and I know that money from one revenue stream doesn't go exclusively to pay for a specific cost center (it all essentially goes into one pot).

But in the end, the business needs to bring in revenue to pay for day-to-day expenses and then also to either
(a) expand the business further - like making capital investments (4G)
or
(b) return it to the shareholders (pay dividends).

We all have the ability to jump ship and use one of the other providers out there if we don't like the price Verizon is setting.

I see your point sir, and believe me im not being disrespectful or "calling your bluff" at all. My main point is, how can you exclusivly charge for something thats not 70% complete? I understand you have to cover your cost but like I said I cant leave a customers yard 70% cut. It would be one thing if they raised the price of our plans (minutes) but its another to specifically raise a price on something thats not 70% complete

 

[TheDig]

I wouldn't be so sure. I could be wrong but didn't he say in the same presentation that we all knew this wasn't going to last forever...implying that we all knew that 3G would not be unlimited forever

 

[zak406]

its not 3g that wont be unlimited its the new 4g, but the problem I have with that as I have stated, It will only be 70% coverage at the end of this year

 

[madkoda]

so if i understand all this correctly..the thunderbolt will launch with the tiered data plans? or will it start out with unlimited data first than tiered plans come later on?

The Verizon CFO seemed to indicate today that it would launch with new data pricing. It could be just the 4G/LTE side of things as opposed to 3G...

but this is also supposed to start mid-summer right? that's what he had said as well.

 

[wvdroidman]

I wouldn't be so sure. I could be wrong but didn't he say in the same presentation that we all knew this wasn't going to last forever...implying that we all knew that 3G would not be unlimited forever

As much as I want to get a new phone I think I will wait until verizon decides on their plans and then look at the other providers like sprint.

 

[zwade01]

Thats true, however if thats the case then shouldnt verizons 3g price of 29.99 a month already cover there 4g expansion? Plan ahead correct? Like you said I could use a 20 year old lawn tractor, or a 10000 dollar zero turn I still charge the same price?

Sort of a chicken and egg situation... and I know that money from one revenue stream doesn't go exclusively to pay for a specific cost center (it all essentially goes into one pot).

But in the end, the business needs to bring in revenue to pay for day-to-day expenses and then also to either
(a) expand the business further - like making capital investments (4G)
or
(b) return it to the shareholders (pay dividends).

We all have the ability to jump ship and use one of the other providers out there if we don't like the price Verizon is setting.

I see your point sir, and believe me im not being disrespectful or "calling your bluff" at all. My main point is, how can you exclusivly charge for something thats not 70% complete? I understand you have to cover your cost but like I said I cant leave a customers yard 70% cut. It would be one thing if they raised the price of our plans (minutes) but its another to specifically raise a price on something thats not 70% complete

Great point. It's as if you offer lawn mowing AND tree trimming services. Not all of your customers with lawns own trees, but you're charging them for the tree trimming service anyway.

Sent from my DROIDX using Tapatalk

 

[kptphalkon]

Sprint doesnt even use ev-do rev. A....yuck! I tried comparing browsing and download speeds on 3G from my girlfreind's optimus s and my droid 2 global, page rendering aside the data speeds aren't amazing by comparison. And this after I thought verizons 3G in my area is bad.

 

[zak406]

Verizon is always trying to make more money its crazy to think that I pay 90 dollars for a phone line now that's insane these prices need to start going the other way not up

Everything else is going up in price lol I paid 3.35 a gallon for gas today, diesel is at 3.89, so has teh price of grocerys. Verizon just wants there cut!

 

[wvdroidman]

Sprint doesnt even use ev-do rev. A....yuck! I tried comparing browsing and download speeds on 3G from my girlfreind's optimus s and my droid 2 global, page rendering aside the data speeds aren't amazing by comparison. And this after I thought verizons 3G in my area is bad.

What about their so called "4g"?

 

[TheDig]

New network, new prices...makes sense. If they do it to 4G they will almost have to do it to 3G otherwise everyone will keep signing 3G unlimited contracts, not smart if you are trying to promote your fancy new network.

I can't see them letting those that jump on the Thunderbolt right away have unlimited 4G just because it isn't nationwide yet, especially when they plan on having alot of the country covered in the next year and a half.

I don't know where everyone got the idea that it was staying the same. It's been proven that nobody from any local BB or Verizon store has a clue as to what is going on with the Thunderbolt/LTE launch.

We will have to see what they do in the next few weeks, hopefully the 4G (tiered or not) price doesn't go through the roof and is comparable to what is offered by Sprint/ATT. It would be nice if they dropped the 3G price a little but that goes back to not helping 4G sales.

If they can offer a LTE package with 450 minutes and unlimited text for around $90, I would give it a look. Simply because thats what my bill is now before discount. That is assuming I still get my 5GB of data for that price.

 

[TheDig]

After re-reading the Znet article from earlier, he almost made it sound like if it wasn't for the iphone coming to VZW that 3G and the soon to be LTE would already be tiered. They didn't want to drive people away so they left it at $30.

Anyone else notice that Apple is having a big press event tomorrow, about the "ipad2" and possibly the iphone5? Haha I love the timing, JUST out of the return window. Who says Apple and VZW aren't in bed together....