Verizon's New 'Unlimited' Data Plans Still Have Very Real, Problematic Limits

from the terrible-precedent dept

Back in 2007, Verizon was forced to strike an agreement with the New York State Attorney General for marketing data plans as "unlimited" when the plans had very clear limits. Twelve years later and it's not clear the company has learned much of anything.

The latest case in point: Verizon this week once again revamped the company's not really "unlimited" data plans, and they once again come with some very real limits. For example the company's entry level "unlimited" plan still bans HD video entirely, throttling everything to 480p, then forcing you to pay extra should you want to view a video stream as its originator intended. But all of the company's plans feature some kind of limits with the goal (always) of upselling you to a more expensive plan should you, you know, actually want unfettered access to the internet and use your device as intended (say as a mobile hotspot):

Verizon has added a new wrinkle to the mix by banning 4K video streaming entirely unless you subscribe to a new Verizon 5G plan (still barely available in most areas) for another additional $10 per month. And again, all of these plans have limits that result in your "unlimited" connection being throttled should you, you know, actually use it. This throttling occurs after 25 GB/mo on Play More Unlimited, 50 GB/mo on Do More Unlimited and 75 GB/mo on Get More Unlimited.

Other mobile carriers like Sprint have similarly experimented with throttling games, video, and music, then charging you more money if you want to bypass these arbitrary restrictions. Again, the entire function of this model is to upsell wireless data customers (who already pay some of the highest prices for mobile data in the developed world) to even more expensive plans if they just want their damn connection to work. Customers who don't know what a gigabyte is or what these restrictions mean will usually migrate to the more expensive plan "to be safe." It's a pricing funnel designed to scare consumers into paying more.

It's fairly impressive that twelve years after Verizon was dinged for not understanding the definition of unlimited -- and after fifteen years of net neutrality debates -- some people still don't see the terrible precedent these kinds of pricing plans set. Letting ISPs impose arbitrary restrictions, then charge you more money to get around them, isn't a model that's going to be great for innovators over the longer haul. And with the triple punch of regulatory capture at the FCC, the death of net neutrality, and looming consolidation/competition erosion courtesy of the Sprint T-Mobile merger, there's a whole lot more of this sort of thing over the horizon.

Filed Under: data plans, unlimited, wireless
Companies: verizon

AT&T No Longer Offering Unlimited Data Plan To New Customers

from the no-longer-to-infinity-and-beyond dept

"Some customers, up until now, have been hesitant to sign up for a $30 monthly data plan" for unlimited access, says Ralph de la Vega

Filed Under: data plans, ipad, iphones, tethering, wireless
Companies: apple, at&t

If Flat-Rate Mobile Data Plans Are So Bad, Why Do Operators Keep Launching New Ones?

from the playing-both-sides dept

Filed Under: data plans, flat rate
Companies: at&t

Audio Streaming: Probably Not What Your Mobile Carrier Had In Mind

from the so-much-for-that-unlimited-plan dept

Regardless of what you think of his ideas about net neutrality, Tim Wu is unequivocally right about one thing: Ziphone is downright magical. Thanks to it I've been in possession of an unlocked iPhone for the past few weeks, and I've been quite pleased with it. The variety of things this little gadget can do is truly amazing.

But for the mobile carriers the sensation it prompts is probably closer to worry. These newfound apps are bandwidth-hungry, and not only for WiFi packets. iPhone Bittorrent is a rather extreme example; EDGE-capable podcatchers are a more plausible threat. But perhaps most striking -- and therefore menacing -- is iRadio, a native application that brings Shoutcast-based streaming audio to the platform. It's easy to imagine a lot of users wanting this functionality and using it heavily, particularly given how often I forget that I've left it playing.

Of course, the percentage of jailbroken handsets isn't likely to ever get particularly high. But that won't be enough to stop these applications. For one thing, most observers think that the SDK -- which is expected to be announced today -- will allow developers access to both the phone's EDGE and WiFi capabilities. For another, streaming audio has already come to the platform without the need for any new code at all. FlyTunes offers a number of radio channels through an iPhone web interface; it works great. Similarly, WFMU offers a specialized domain for listening to the station on your mobile. More of these apps are almost certainly on the way.

It's true that this is just one device, but it's already setting a standard for what consumers expect from a smartphone -- and proving that users and savvy developers will use every bit of bandwidth they can get to. This demand will only grow as Android arrives and the carriers' grip on the mobile platform inevitably loosens. I'm hardly longing for the days of per-kilobyte data charges, but it seems likely that many carriers will soon be faced with choosing between a return to metering or a flood of customers upset by unexpected transfer caps on their allegedly-unlimited data plans.

Filed Under: audio, data plans, streaming, wireless