Verizon CFO Says Tiered Data is on the Way

Ryan Whitwam

The US wireless industry is divided into two main groups. There are the "we try harder" folks, that's T-Mobile and Sprint. Then you have the market leaders, Verizon and AT&T. It seems that whenever one of the larger carriers makes a move, the other follow suit. We saw this when Verizon jacked up their ETF fee, only to see AT&T do the same a few months later. Now Verizon is making noises about joining AT&T in offering tiered, or limited, data packages.

Verizon's CFO, John KIllian wasn't mincing words when he made a statement today. “We will probably need to change the design of our pricing where it will not be totally unlimited, flat rate,” said Killian. The inflection point was pegged as the coming 4G changeover. Despite the fact that LTE is expected to have better bandwidth management, Verizon believes they will see excessive usage. AT&T's Pro data package has a 2GB cap. It's unclear where Verizon would draw the line.

We feel most consumers won't be negatively affected by data caps in the near term, but future streaming services could be held back by the restrictions. How much mobile data do you use a month? Would you agree to a capped plan if you could get substantially faster data?

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