Internal Document Verifies Closure Of Loophole For Legacy Unlimited Data Subscribers On Verizon

[DroidModderX]

The document above is a memo that was sent to Verizon Wireless employees outlining the closure of the Loophole we wrote about earlier. This verifies that Verizon will indeed be closing the loophole allowing Legacy Plan subscribers to upgrade on a standard line and move that phone over to a legacy line. The memo specifically states that anyone upgrading to a smartphone regardless of whether they are on a legacy unlimited line or on a standard line would be expected to pay for a data plan for the length of the 2 year contract. The document goes on to say that those who are uncomfortable with the data package requirement could bring their own non-contracted phone or pay full price for a phone to avoid the data costs. This also verifies that the loophole will close on 8/24.

 

[gadgetrants]

Pulled this "switcheroo" move on two lines late last year. So we're good for another year and a half. Guess after that it's time to look into finding a new carrier. It's a shame -- I've had otherwise good experiences with VZW but this definitely tilts the scales the wrong way.

-Matt

 

[rhcp011235]

Honestly, Who gives a crap. This should have been closed day 1. Its pure abuse.

 

[StupidGenius]

Honestly, Who gives a crap. This should have been closed day 1. Its pure abuse.

Interesting comment. I'm not agreeing, nor disagreeing with it, but I wonder how the general community feels about this. I would assume many that frequent a tech forum such as this could be considered "power" users, so this will be a huge blow to them. I have access to a lot of wifi at home and work, so the loss of unlimited wouldn't impact me much. I think the most I've used in 1-month is about 3GB, but probably average about 1.5GB.

I checked in the poll section but didn't see these. I'd like moderators to do two polls:

1. "How much data use do you average each month"
(1-2, 3-5, 6-10, 10-20, 20+ how much)

2. "How do you feel about Verizon's push to get rid of "unlimited" data? Vote and/or comment.
They're just trying to make more money.
They're trying to protect their network for the general public.
Few people need it.

These are just off the top of my head, so edit or change as you see fit.

Again, I may not need unlimited, but I can see where people that don't have the same access to free wifi as I would like to stream and download at their leisure.

 

[gadgetrants]

Honestly, Who gives a crap. This should have been closed day 1. Its pure abuse.

Not exactly "pure" abuse. There's a two-way street here...like @StupidGenius I use between 1 and 2 GB per month, so even though I'm "squatting" on my unlimited plan I'm far from a data whore, as far as VZW is concerned. Just a nice, polite customer who's keeping himself grandfathered as far as he can go.

But remember, us grandfathered folk lost our upgrade/subsidy years ago, which means either: (a) we pay full price for a new (or find a used) phone, or (b) we work the loophole. I'm pretty much equivalent to the guy who downgraded his account to the 2GB-for-$30 option -- he gained the new-phone discount and lost unlimited, but also kept himself locked into a contract. In my case, the outcome is more or less the same...I use less than 2GB data and lock myself into a new 2 year contract (through the feature-phone switcheroo). In fact, I pay *MORE* than the 2GB plan guy because I pay the additional $9.99 plus taxes on the line that isn't even being used.

That's far from abuse (in a sense, VZW is actually the winner) but what I can't say is how many customers follow the same strategy. Surely there are grandfathered people out there on unlimited who suck every MB they can out of the system (i.e., use it as their own personal home 4G distribution system). I'm sure there are also customers who flip the smartphone off the line and sell it for a $200 profit within days of buying it (that to me is a completely different case). Anyway there's more nuance here than meets the naked eye.

-Matt

PS A coupe of interesting follow-up thoughts. First, I've worked this deal through Best Buy, and they were very helpful in getting it to go. I've also had VZW sales reps recommend I do it to "keep unlimited." That doesn't make it right, but it suggests to me that it's not a simple case of customers abusing the system. Second, and this is probably a lot more significant, in my wife's case VZW actually offered her a 6GB/month (for the same $30) option when she wanted to upgrade to a Moto X, for giving up unlimited (this is last November). Best Buy even saw the option as well. Not sure it's still available for unlimited users, but it's worth asking!

 

[cybertec69]

So now that Verizon has closed a loophole that favors you "it was a loophole and not something that was legit", but not the company, you all want to jump ship, all it was was a loophole, that's all, now you will have to go buy a phone outright like all the rest of the unlimited data users to keep the unlimited data plan, go cry a river somewhere else, yea of course you will go switch carriers, once you do let us know how your reception is outside your neighborhood.

 

[RemyL75]

There shouldn't be any outrage about this. Why?? Because everyone knew the second that Verizon switched to tiered data plans that Unlimited Data was eventually going away. And technically it is not gone yet, but it's closer to being gone than it has been. So, really, this can't possibly be a shock. They want everyone off Unlimited Data, and they will continue to chip away at it until there is nothing left of it.

 

[Dusty]

I would have put up with the squeeze they placed on grandfathered plans if they allowed Nexus or GPE devices. I left VZW last week, screw 'em. It wasn't like I wasn't dropping money on them monthly. They were making a lot of money off of me.

My observations: I just got back from a quick weekend trip. I will say this, people who think that TMo is just as good as VZW are just flat out lying or they never leave their town. When traveling from place to place the coverage is BAD. However, after you get to where you are going, TMo is usable.

I'm on the TMo $30 "unlimited" plan with a OnePlus One and I kept my MotoX as a tethering device bundled with my wife's phone on VZW. I use the MotoX as a backup for data when traveling. I now make due with the small hassle of using 2 devices to bridge the reliability gap of my old unlimited plan. I also closed out a dummy line that I used as a spare phone for my Mom. She didn't need it but I gave her my old phone and picked up a subsidized S4 (what a mistake) a long while ago.

But here's the bottom line... I'm saving $80 a month by switching to TMo, and VZW makes $120 less from me per month. That's money from VZWs pocket not mine. See ya Big Red I hope you get what you want.

 

[diesteldorf]

It'll be interesting to see how this is implemented. I recently used all of my upgrades available on all lines and now have all my Unlimited Data lines under contract till 2016. The most recent upgrade used extended my Unlimited Data line till 8/6/2016.

A couple things I am concerned about:

In the internal documents, they show a special section for the DATA PLAN REQUIREMENT contract. Of course, if you upgraded your phone and had no suspensions etc, it would mirror the actual two-year contract.

However, feature phones currently allow a 75 mb data plan for $10. Will that also count as a data plan if someone wants to put a feature phone on a line that used to have a smartphone (theft of smartphone, personal choice, punishing a child)?

Or, will Verizon prevent feature phones from being activated on former smartphone lines, or maintain that the data plan must stay at a minimum of $30, regardless of phone.

Also, in the past Verizon has allowed anyone to take any existing phone line and use it for a Home Phone Connect or a tablet/netbook. Will Verizon stop allowing this as well? Granted, a tablet requires a data plan already, but Home Phone Connect does not.

Finally, I'd be curious to know how this may affect someone who assumes responsibility of a line from another user. The new owner is currently responsible for any remaining time on the contract and ETF. Will Verizon also require them to keep a data plan when no actual transfer of equipment is involved?

 

[mountainbikermark]

I would have put up with the squeeze they placed on grandfathered plans if they allowed Nexus or GPE devices. I left VZW last week, screw 'em. It wasn't like I wasn't dropping money on them monthly. They were making a lot of money off of me.

My observations: I just got back from a quick weekend trip. I will say this, people who think that TMo is just as good as VZW are just flat out lying or they never leave their town. When traveling from place to place the coverage is BAD. However, after you get to where you are going, TMo is usable.

I'm on the TMo $30 "unlimited" plan with a OnePlus One and I kept my MotoX as a tethering device bundled with my wife's phone on VZW. I use the MotoX as a backup for data when traveling. I now make due with the small hassle of using 2 devices to bridge the reliability gap of my old unlimited plan. I also closed out a dummy line that I used as a spare phone for my Mom. She didn't need it but I gave her my old phone and picked up a subsidized S4 (what a mistake) a long while ago.

But here's the bottom line... I'm saving $80 a month by switching to TMo, and VZW makes $120 less from me per month. That's money from VZWs pocket not mine. See ya Big Red I hope you get what you want.

Another paper cut. I gave them 4 paper cuts this year add as well moving my 4 lines away from Verizon post pay.
My thing with unlimited is not so much that I was every a heavy user. I go to a buffet and I eat what I want, never being a glutton, but at the same time I see gluttons and I'm not bothered because we both had the right to consume as much or little as we wanted according to the rules. Verizon has changed the rules of data consumption now. I truly do not believe any of those changes were because of gluttonous users but, or more revenue made from overages, but simply because they could. With tens of millions of customers I doubt a few power users made much of an impact on their bottom line. They can get users to pay the subsidized rate plan while not subsidizing their phone, more profit. They can get users to pay a new customer activation fee though they're not new customers, more profit. They can get free advertising with stories such as this, more profit. In convinced Verizon is making much more profit with the millions of customers that are in tiered data plans that don't use their allotment than they could ever lose from the power users if they left things as is but because they can they do. As far add throttling, that'll only be temporary until they come up with something different because the federal government has stepped in on the throttling situation.

Sent from my LG-D801 using Tapatalk

 

[bkdodger]

IMO Verizon is not getting rid of the unlimited plans ...I just feel they won't announce hey no more unlimited for you plans ...they are doing their best to sway peeps away from it ...it's really simple ..you want to keep unlimited then pay for the phone ...if it's important to you and you use enough data (not hogging ) but if it's financially better for you then pay for the phone ..you can keep it the 2 yrs and the difference in price between retail and subsidized you are ahead ...if you want a new phone then flip the phone with a sale and buy new one ..you can leave like I did ...tried T-Mobile but it didn't work right for me ..and the price was not better for me considering the company discount difference and all ..you still pay for a phone ...outright ..I'm at at&t now and they are not much better price wise on plans ..but I get a chance at Nexus and GSM compatible networks....I'm still paying full retail though..that's me ..
Bottom line everyone is different ..different usage ..areas ...what's good for one might not be the other ...

M8 tap'd

 

[xeene]

If I would go to T-Mobile right now my bill would double for same usage I do on Verizon(2 unlimited everything lines + 1 unlimited talk and text for $140 after taxes). I'd rather buy phones then pay more every month.

 

[cybertec69]

If I would go to T-Mobile right now my bill would double for same usage I do on Verizon(2 unlimited everything lines + 1 unlimited talk and text for $140 after taxes). I'd rather buy phones then pay more every month.

Also have service everywhere.

 

[Dusty]

The thing that smelled funny to me when I spoke to VZW was the language behind the throttling. I was told that if you we're in the top 5% and on a tower that was congested you'd be given a low priority. I asked what constituted a "congested" tower she could only say it was a tower where subscribers were "competing for band width" it doesn't matter if the tower is at or below its engineered capacity. Users simply have to be using it to be considered competing.

So basically... get ready for 3G speeds because, according to their statistics, if you use more than 6GB that month you're gonna be in the "throttle zone" because the average user consumes below 3GB for the month. The "HEAVY" data user plan is considered 6GB per month. The people who are burning 5+GB at the mid-month mark (like me) are about to be squeezed hard, plain and simple.

--> Is this user on a grandfathered unlimited plan?
-->Has this user consumed more data than 95% of the subscribers currently using this tower?

** THROTTLE **

 

[Rognish]

on my unlimited phone line i get a company discount of 8% which I believe is the lowest discount out there. I also have a phone which was converted to a tier plan almost two years ago and at that time i also lost my discount for my data on that line.