Verizon's CFO Says that "unlimited" is "just a word" and "doesn't mean anything."

Discussion in 'Android News' started by dgstorm, Sep 21, 2012.

  1. gadgetrants

    gadgetrants Senior Member

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    It doesn't take a high school diploma to figure out:

    (1) Verizon analyzed voice/text/data usage for a few years

    (2) In particular, they computed average data consumption, which I'm guessing is under a GB per device per month (hence the comment that "'unlimited' doesn't exist or mean anything because the vast majority of users consume so little data)

    Assuming that low-bandwidth voice/text are almost free for the carrier, data is the expensive commodity:

    (3) Verizon then modeled what happens to their income stream by moving everybody over to "unlimited voice/text", while placing heavy caps on data.

    The result of the model is:

    (1) The average user gets a specified data amount that, on average, they shouldn't exceed

    (2) Occasional data overages create additional revenue

    (3) They offer "unlimited" voice/text, which cost Verizon almost nothing but have great perceived value to the "average" user

    (4) They offer "shared" pools of minutes/texts, which depending on the number of "families" (I'm assuming > 50% of the customer base) is also a high-value option

    (5) Relatively expensive data consumption is bottlenecked, and hi-density data consumers are chased off the network


    I think that was how it worked. Not a personal decision, not an emotional decision, not a social-progressive decision. Just a business decision.

    -Matt
     
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  2. metalspring

    metalspring Silver Member

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    on second thought, the cfo had a point, unlimited data doesnt mean anything...ON 3G...when you can only get about 2.5 mbps then yeah 2 or 4 gb a month is pretty reasonable, when you 10-20+ mbps then 2 or 4 gb seems like nothing...
    they should have waited for the shared data plans until they had more data collected on how much data people with 4g use (it takes time for people to realize what they can do with those crazy high data speeds)
     
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  3. gadgetrants

    gadgetrants Senior Member

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    Excellent point. :clap:
     
  4. Theot

    Theot New Member

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    Amen, the last two weekends I've been away from home and used the nfl mobile app to watch red zone. On 4G, about 5 hours of use between the two weekends and it put me well over 12 GB, and I usually use 4-5 tops. They can't keep pushing streaming of video and music and all the things you can do and expect people to pay ridiculous overages to use these services long term. People are going to go without.

    From an Eclipsed GNEX
     
  5. cybertec69

    cybertec69 Silver Member

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    REALLY:blink:
     
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  6. captdroid

    captdroid Senior Member

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    Really 'unlimited' means nothing eh' ok well this pin head cfo better be sure that another carrier doesn't catch up enough in coverage for me along with a better deal because I will inform Verizon what exactly the word 'cancel' means! :biggrin:

    As a side note where do they find these guys? lol must be Obama fans... can't add and they speak out both sides of the mouth.
     
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  7. jroc

    jroc Silver Member

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    He's right......key point he left out tho was the type of service. lol.

    Verizon and AT&T are good in my area....Sprint n T Mo suck in my area. AT&T might be better than Verizon in my area.
     
  8. liftedplane

    liftedplane Gold Member

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    I think I'm going to go checkout a sprint plan for a while and see what the coverage is like in my area, then if it's good port out my two main numbers and cancel the rest... I'm tired of verizon's garbage and how they treat their "network" the only way to change their mind is to vote with our wallets.
     
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  9. 52brandon

    52brandon Active Member

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    if unlimited is just a meaningless word, why go through all the trouble of eliminating it?
     
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  10. rsccarlson

    rsccarlson New Member

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    Unbelievable.

    What planet did Shammo come from. "Unlimited data" is not just a word. They want to minimize it so they can direct people to their only alternative, shared data plans, the only place where you can pay a fortune for very little data.
    It has redefined pure greed on the part of Verizon. What will be interesting is how they will try to bump people off existing unlimited data plans in the future. Its not a reasonably priced good value product for the consumer , its what makes lots of money for Verizon.
    Unlimited texting and unlimited phone minutes don't cost the
    company anything, the unlimited data is the wrong road they went down and are now trying to correct with big time profits. I know of no one happy with the shared data plans, simply lots of money for very little data. Push the concept and people will come to accept it. Maybe you can watch 1/2 a movie on Netflix with 2 gb. Unbelievable. Be competitive with good products priced appropriately that you offer to the public and you will be on top. Try to brainwash the public with your overprice products and they will eventually jump ship. I think some of the other companies are
    going to re-instate unlimited data plans. What will Verizon do then.
     
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  11. billyk

    billyk Member

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    Unlimited doesn't mean anything?

    Unlimited means $100+ savings per month for this customer.
     
  12. Tillmorn

    Tillmorn Active Member

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    Hmmmm. I personally use right around 20GB a month due to services like Google Music (I'm on the road for at least two hours daily), Netflix, and the occasional game that requires a data connection. There's no way I can afford to switch over to a shared plan. Nor would I want to given that Verizon promised grandfathering in to unlimited 4G if you had unlimited 3G. Not, oh you can keep it for a little while, then we're going to rape you with our new price scheme. Unfortunately this means I'm either transferring to Sprint or T-Mobile when the current contract is up. Why? Because my family will want to move to the "unlimited talk and text" family plan and get new phones at the "cheap" price. Now I'm sure if I were to talk to a rep via phone, we could work out a deal where my line does not get switched over to the shared plan and I buy a new device outright. Perhaps the rep could even set up my own contract separate from their's that kept my unlimited data (doubtful). However the rest of my family are firm believers that they get better deals by talking to someone at a store. So...hello Sprint?
     
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