Monday, November 22, 2010

Verizon - Speed and Usage Price Tiering

Roger Cheng and Shayndi Raice report to the Wall Street Journal that Verizon Wireless "are exploring ways to charge consumers based on the speed of their wireless data connection in addition to the amount of data they use .. The speed factor throws in another wrinkle in how carriers are looking to price their data plans".
See "Verizon Rethinks Pricing" - here.

Verizon Chief Financial Officer Fran Shammo (picture) said  "If you want to pay for less speed, you'll pay for less speed and consume more, or you can pay for high speed and consume less ..Verizon's 4G network, which is based on technology called Long-Term Evolution, can deliver between 1 and 12 megabits per second of data, allowing for tiered pricing structure similar to home wired Internet service.

Chief Executive Ivan Seidenberg said "he expects the number of data users to jump to about 75% of Verizon's contract customers over the next three to four years from 23% today, regardless of the device .. by 2016 or 2017, it wouldn't surprise us if 30% of our customers are using a gig[abyte] a month"
See also Vodafone Growth Strategy: "transitioning our data pricing plans to tiered plans and differentiated service levels" - here and TeliaSonera's New Business Model: Value-based Pricing - here.


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