Verizon to drop Unlimited Data on 7/29, tiered pricing to follow?

Discussion in 'Android News' started by wuyanks, Jul 20, 2010.

  1. kodiak799
    Offline

    kodiak799 Silver Member

    Joined:
    Feb 20, 2010
    Messages:
    4,964
    Likes Received:
    283
    Trophy Points:
    198
    Ratings:
    +294
    And that's why heavy users will pay more because they are more likely to be utilizing the network (and receiving more data) more at peak times. i.e., I can sell that block to 100 email users because the expected distribution of usage will be within capacity constraints....ORRRR I can sell that block to 1 person watching a flash movie.

    But if those 100 email users increase their usage, start wanting to also browse the web, then the higher than expected frequency, time and data requirements are going to see overloads at times - a person expected to use 10% of the block on average is now using 20% and we have problems because optimal subscribers has dropped from 10 per block to 5. And the immediate solution is to either cap usage, which may or may not be sufficient, or attempt to incentivize people to shift their usage patterns through various pricing plans (i.e. unlimited data after 9PM).
     
  2. clucernoni
    Offline

    clucernoni Member

    Joined:
    Jan 26, 2010
    Messages:
    154
    Likes Received:
    0
    Trophy Points:
    16
    Ratings:
    +0
    But also think about it this way..Let's say Verizon limits us to only 50 MBs per month...so they cut usage BIG TIME. But what if we all log on tomorrow at noon and use 1MB of that data at the same time. The data rate will still be very, very slow. So in that case, capping data usage didn't solve the problem at all. The fact is that while capping data will make people use the network less often, it won't necessarily make it any faster or the experience any better for anyone...Especially if people still use their allotted amount of data during the same time as they do now, but cut out the extra uses during "off-peak" hours.

    Some people will be more careful with how they use their data, which is what Verizon wants, but others will simply suffer because the times that they use their data, the network isn't congested anyway.

    Could we perhaps see something similar to the "Day Time" minutes and "After 7pm" minutes? Basically, Verizon needs to lessen the load during "peak" hours, so why not just cap data during those times only? I stream movies to my Droid at 2am sometimes...network load isn't a problem at that time at all, but it would still count against my data cap.
     
  3. clucernoni
    Offline

    clucernoni Member

    Joined:
    Jan 26, 2010
    Messages:
    154
    Likes Received:
    0
    Trophy Points:
    16
    Ratings:
    +0
    Yes I think this is the true solution to the problem. That way, people will shift their usage and maybe won't download that large file at 3pm in the afternoon if they can wait til after 9pm to do it. It makes sense to me. Just cap the peak hours.
     
  4. baaldemon
    Offline

    baaldemon Member

    Joined:
    Apr 16, 2010
    Messages:
    48
    Likes Received:
    0
    Trophy Points:
    6
    Ratings:
    +0
    Here's some basic math for you. Let's say my 3G connection is 1.5Mbits/sec. That means my theoretical limit is transferring 675Bytes an hour which works out to around 474GBytes a month. My highest data usage was around 15GB last month, I did not tether at all so all data was strictly through my phone. With that being said I utilized a measely 3% of my theoretical potential limit. If they were to implement the cap at 2GB they would only be allowing a utilization of 0.42% of what would be possible to use.

    So even with my "heavy usage" they can still oversell their network 33 times if all users used 15GB a month. What they would be asking for if they setup a 2GB limit would be to oversell their network 238 times. But once again all that doesn't matter because because there network can still only handle a total number of users hitting it at one time. Which is why capping doesn't solve any issue, but active throttling would.

    Sent from my Droid using Tapatalk
     
  5. baaldemon
    Offline

    baaldemon Member

    Joined:
    Apr 16, 2010
    Messages:
    48
    Likes Received:
    0
    Trophy Points:
    6
    Ratings:
    +0
    675Bytes should read MBytes

    Sent from my Droid using Tapatalk
     
  6. wuyanks
    Offline

    wuyanks DF News Team Premium Member

    Joined:
    Nov 6, 2009
    Messages:
    2,389
    Likes Received:
    0
    Trophy Points:
    101
    Ratings:
    +0
    interesting breakdown. can't disagree.
     
  7. clucernoni
    Offline

    clucernoni Member

    Joined:
    Jan 26, 2010
    Messages:
    154
    Likes Received:
    0
    Trophy Points:
    16
    Ratings:
    +0
    But you have to admit that it makes sense from a business perspective. It will lessen usage somewhat because people don't want to go over their data limit. So ppl like me will stop streaming pandora from their phone at work when they have a computer right next to them. And they still get to charge overage fees and make more money. Of course it makes no sense for the user outside of peak hours.
     
  8. kodiak799
    Offline

    kodiak799 Silver Member

    Joined:
    Feb 20, 2010
    Messages:
    4,964
    Likes Received:
    283
    Trophy Points:
    198
    Ratings:
    +294
    Well, in theory a cap would cause some amount of reduction in usage throughout the day, wouldn't be linear but should relieve some pressure at peak times. Agreed probably not an ideal solution and likely would not keep up with the added pressure from new subscribers.

    I guess I've been misusing the term and really been referring to tiers and assuming there is an unlimited tier. "Soft caps" thru tiered plans. Don't know, maybe we'll see something like allowances for "peak data useage" and free after 9PM like with cell.

    I could live with 500meg a month daytime. Then again, that wouldn't help on free weekends when I'm most likely to be out and about wanting to use a lot of bandwidth.
     
  9. Abe21599
    Offline

    Abe21599 DF Super Moderator Rescue Squad

    Joined:
    Dec 22, 2009
    Messages:
    6,334
    Likes Received:
    30
    Trophy Points:
    163
    Location:
    Ohio
    Ratings:
    +30
  10. wuyanks
    Offline

    wuyanks DF News Team Premium Member

    Joined:
    Nov 6, 2009
    Messages:
    2,389
    Likes Received:
    0
    Trophy Points:
    101
    Ratings:
    +0
  11. Abe21599
    Offline

    Abe21599 DF Super Moderator Rescue Squad

    Joined:
    Dec 22, 2009
    Messages:
    6,334
    Likes Received:
    30
    Trophy Points:
    163
    Location:
    Ohio
    Ratings:
    +30
    well thats y lol i posted that like a minute after u did

    thought maybe u missed it on twitter :) - but yea the title from droidlife is not really what the article is about
     
  12. kodiak799
    Offline

    kodiak799 Silver Member

    Joined:
    Feb 20, 2010
    Messages:
    4,964
    Likes Received:
    283
    Trophy Points:
    198
    Ratings:
    +294
    Interesting breakdown, but you are looking at it from the wrong angle. You are saying only X number of users can hit it at one time. That's correct, but what I'm saying heavy users are more likely to be hitting that. It's not X number of users, but a distribution of users, and that's where inequities come into play with heavy users (agreed it's not 1:1)

    What I'm saying is, you are 5X more likely or whatever to be on at a peak time, and probably using more bandwidth to boot - i.e. you'll be on twice as much between 5-6 and receiving 3X the data. That poses problems for a model that assumes a lower expected usage and blows out the distribution.

    When you start hitting capacity limits, one solution is to create different buckets based on usage patterns. You have 100 buckets you'll sell for $100 each, and you'll have 100 light users in one bucket and 10 heavy users in another, meaning the heavy users would pay 10x. It obviously doesn't work that way as you illustrate that using 10X the data doesn't mean you're using 10X the bandwidth at peak times (maybe 2-3X or something).

    Still not perfect because, in theory, all your use is at off-peak hours and you should actually pay LESS than a light user. But this is always how you would price from the start, unless you are running a type of promotion to attract users.

    I'm am absolutely against throttling down the network. I pay for performance and I want performance - LOL, that's why I'm a VZW customer. Throttling down the network is a form of subsidy to heavy users because I'm sacrificing utility to satisfy their much higher demand. Although, a pricing plan that offers different download speeds would be interesting (if that's even possible).
     
  13. obxsalvo
    Offline

    obxsalvo Active Member

    Joined:
    Feb 13, 2010
    Messages:
    248
    Likes Received:
    37
    Trophy Points:
    28
    Location:
    Hatteras Is. NC
    Ratings:
    +42
    Current Phone Model:
    Droid Turbo
    AWW Nuts!!!
     
  14. jsh1120
    Offline

    jsh1120 Silver Member

    Joined:
    Dec 9, 2009
    Messages:
    2,455
    Likes Received:
    1
    Trophy Points:
    103
    Location:
    Seattle, Washington
    Ratings:
    +1
    I have to say that this is one of those threads that make me weep for the absence of economics as a subject in the schools.

    As nearly as I can tell, there is a substantial number of people on this thread who think an ideal pricing model for energy would be a flat fee for everyone regardless of their use. Just send the power company a check for $30 every month and gobble up the kilowatts. The aluminum processing plant down the street would love it but those of us who get hit with brownouts might not find it so appealing.

    Likewise, there seems to be a rather sizable contingent who think that "greed" shouldn't be a driving factor in capitalist firms. My own feelings about capitalism are somewhat mixed, but however one feels about the entire economic structure, greed is what drives it.

    Furthermore, although consumers may (rightly) feel they are supporting VZW to an adequate extent already, it is worth noting that investors (who actually drive the construction of infrastructure) are not nearly as happy with VZW. So if the firm is committed to building more infrastructure, it needs to convince investors it's worth ponying up for the stock.

    Finally, there are various ways to control demand in the face of limited capacity. How one feels about various approaches depends on whose ox is being gored. And the simplest and most effective approach has always been shown to be price incentives. They have the delightful attributes of being easy to understand and immediately effective. More complicated incentives like throttling (which ultimately only stretches out demand) and time shifting are not nearly as effective.
     
  15. NeoandGeo
    Offline

    NeoandGeo Member

    Joined:
    Feb 10, 2010
    Messages:
    451
    Likes Received:
    0
    Trophy Points:
    16
    Ratings:
    +0
    But you're forgetting the grossly overpriced talk/text plans we are forced into getting in your electric company analogy. We are already paying well more than enough to subsidize our data use.
     
Search tags for this page
is verizon cutting unlimited data
,
verizon cutting unlimited data
,
verizon data prices ever change?
,

verizon drops unlimited data

,
verizon restricting unlimited data
,
why did verizon drop unlimited data
,
will verizon drop data prices