What is Tiered pricing?

[atmcgill97]

What is it and how much do you think the rate will be? All I know is that it will be bad if it happens. Also, lets say 4g costs $20 for 3gb or something. If I start to run low on gbs (Lets say I have used 2.8) can I switch the thunderbolt to run on 3g? Will this cost more?

 

[sidsixseven]

What is it and how much do you think the rate will be?

Whether it's a good or bad thing is a matter of perspective, really. The basic idea of Tiered pricing is that rather than offering a single price for an all-you-can-eat buffet, that varied prices will be offered based on consumption.

The basic voice plan model is a good example of Tiering. A 500-minute plan is for 500 minutes, a 1500-minute plan is for 1500 minutes.

The important thing to note is that a Tier pricing scheme doesn't necessarily mean that there isn't an Unlimited option. There MAY be an Unlimited option, but you usually pay a premium for it.

I'm paraphrasing a bit here but the main things that you can understand from what the CFO for Verizon recently said are that:

1) They want to offer a lower price point Tier to entice Verizon customers with voice only plans to start using Smartphones with Data plans.

2) They believe the price point existing smartphone users are willing to pay is between $30-$50.

3) We will see a glimpse of what Tiering will look like with the release of the Thunderbolt.

Now what that means is just speculations at this point. However, I think it's reasonable to assume that the expected price point for the Data plan that offers customers the most will be between $30-$50. AT&T prices their 4GB plan at $45, so I my bet would be on a $50 plan for unlimited 4G/LTE and less for 3G.

In addition, I think sometime in the summer you'll see some lower priced 3G data plans. Something like $15 for 250mb. It remains to be seen if the $30 Unlimited plan for 3G will go away or not.

Some people view Tiered pricing as a good thing. Certainly if you are an occasional Data user, a lower priced plan is a good thing. Chances are good, however, that if you are this interested in your Smartphone -- you are one of the target people they think are willing to pay $30-$50.

My issue here for me is that it's not just an increase on one line. I have multiple lines and already feel that (particularly compared to Sprint) the data plan rate is unreasonable.