Saturday, June 19, 2010

Verizon: LTE Will See Tiered Pricing

Verizon expects "explosions in data traffic" so it "probably need to change the design of our pricing where it will not be totally unlimited, flat rate" - as told by John Killian, Executive Vice President and Chief Financial Officer - Verizon, to Amy Thomson from Bloomberg.

See "Verizon May Follow AT&T’s IPhone to Tiered Pricing" - here.

According to Killian "Verizon’s customers for smartphones, like the Droid and Incredible, are using between 600 and 800 megabytes of data per month, similar to what iPhone customers consume" [The iPhone number should be a quote from AT&T] . 

See a chart from a recent FCC report (here).

Also, mobile network are becoming a smartphone domain - "Smartphone users will make up 70 percent to 80 percent of the company’s customers “over time,” up from about 17 percent today". This may have some reflection on network elements implementing services that may no longer be needed (such as content adaption and WAP gateway) while other services will be enjoy higher demand (such as security related services, as smart devices might be a subject for attacks).

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