Verizon: Nobody Really Wants Unlimited Data Plans, And Those Who Do Should Ignore Such Silly 'Gut Feelings'

from the these-are-not-the-droids-you're-looking-for dept

As we've made repeatedly clear, consumers really like the ease and simplicity of unlimited data plans. Whether that's on fixed-line or wireless networks, users don't really like having to guess if they'll make it in under the wire this month, and don't particularly enjoy being socked with $15 per gigabyte overages should they stream a few extra songs or watch a YouTube clip. However, when you enjoy the kind of regulatory and market power AT&T and Verizon do, you don't have to give a flying cellular damn what your consumers actually want.

As such, both companies decided to eliminate their unlimited data plans entirely a few years ago, replacing them with shared data plans laden with caps and steep overages. And while both companies did grandfather existing unlimited users, they made life as uncomfortable as possible for those users, whether it was by secretly throttling them after a few gigabytes of usage or restricting their access to specific apps unless they "upgraded" to a shared, metered plan. Meanwhile, competitors T-Mobile and Sprint have tried to differentiate themselves by continuing to offer unlimited data options.

Continuing the proud tradition of telling users what they want instead of giving them what they want, Verizon this week offered up an amusing blog post in which an analyst paints unlimited data plans as a public menace of the highest order. To hear analyst Jack Gold tell it, we should all agree that you can't have unlimited data plans, because they'll obliterate the network and leave us all weeping over our smart devices:

"The quality of connection is important to wireless users, and when connections become slow or disconnections occur due to overcrowding, users become disappointed. Let’s face it, if everyone had unlimited data and used it fully, the performance of the networks would suffer because of bandwidth restrictions and the “shared resource” nature of wireless. The bottom line is: users agree that degrading the networks is something that they don’t want to happen."

If I only had a nickel every time the congestion bogeyman was trotted out to defend anti-competitive pricing and policies. While spectrum is certainly a finite resource, Gold intentionally ignores the fact that offering unlimited data plans doesn't mean idiotically ignoring all network management and letting your network implode. While both Sprint and T-Mobile offer unlimited data, they still implement network management and throttling practices that ensure traffic loads remain relatively balanced and the consumer experience remains consistent.

In other words, most unlimited data plans aren't really unlimited anyway, or users have to pay a steep premium for the privilege of not having to worry about data thresholds. That's because AT&T and Verizon dominate 85% of the special access and cell tower backhaul market, resulting in Sprint and T-Mobile (and most everybody else) having to pay an arm and a leg too. It's all quite by design.

Gold knows this, but it's apparently much more fun to try and argue that unlimited data plans decimate the fabric of the space-time continuum and rip the very axle of the universe from its foundation. Disagree? Verizon's analyst proceeds to imply you're simply being overly emotional:

"So, while unlimited data may sound attractive, there is no practical effect of data limits on the majority of users. Understanding this should bring rationality to a discussion that is often held on a “gut feeling” level. Keeping adequate speed and performance while allowing all users to share the limited commodity we call wireless data is the fair way to deal with wireless connectivity. And ultimately, that is what is beneficial for wireless consumers."

Just so it's clear, it's "rational" to support Verizon's vision of internet pricing, in which you pay some of the highest prices among developed nations, but it's a "gut feeling" should you start to desire a better value plan. It's never quite clear to me who these telecom blog authors actually think they're speaking to. Surely the goal is to influence an overarching policy discussion, but all they generally wind up doing is having their brand mocked mercilessly by news outlets for being painfully out of touch with what consumers actually want.

Filed Under: consumers, data caps, jack gold, unlimited data
Companies: verizon