Use a ton of data every month? Love it? Kiss it goodbye.
Verizon recently announced its Share Everything data plans that replaced its old data packages. If you were an early subscriber, chances are you might still have an unlimited data plan. You can't upgrade without paying full price for a phone, or switching off of that data plan, and Verizon's perfectly happy about that. In fact, the company's executive vice president and chief financial officer Fran Shammo recently declared unlimited data dead.
Speaking during a Goldman Sachs event, Shammo said that Verizon Wireless has seen more of its customers adopt its new Share Everything plans that it originally expected. "The thing that really surprised us is we have a lot of people coming off unlimited to go to shared," he said. "So what customers are understanding and through our good sales routine is once you explain to a customer their usage on a monthly basis, unlimited is just a word, it doesn't really mean anything and that people don't really — I think a lot of consumers think they consume a lot more data than they really do. So that whole unlimited thing I think is going by the wayside and they see the benefit of going to the shared."
I've been told myself that most wireless consumers eat up less than 2GB of data per month, so Shammo's statements are pretty dead on. But I know the tech geeks in all of us still don't want to worry about surpassing a data cap. It's just that natural feeling that we're all used to from the days when speaking on the phone too much would send our bills skyrocketing.
Ultimately, Verizon made its choice to stop offering unlimited data to new customers in an effort to boost revenues. "The plan is doing exactly what we thought the plan would do because when you think about revenue growth into the future, the shared revenue plan and what I'll call revenue per account if you will, is really the critical piece because there are two functions," Shammo explained. "One is get people to share so that data becomes the most signficant piece of the plan and the more data they consume the more they will have to buy up in bundles." The other plan?
Shammo wants to make it easier for customers to "attach more devices" to its network.
Do you agree unlimited data should go by the wayside?