Verizon plans to kill "grandfathered" unlimited data plans:

[Irish Rose]

Verizon customers, say goodbye to grandfathered unlimited data plans if you want to upgrade:


By Chris Welch | The Verge, Thursday, May 17, 9:38 AM

Verizon Wireless will no longer be allowing customers on a grandfathered unlimited data plan to upgrade to a 4G LTE smartphone when the carrier launches its tiered data share plans in mid-summer. Executive Vice President and CFO Fran Shammo announced the news during an investors conference Wednesday morning. "LTE is our anchor point for data share, so as you come through an upgrade cycle and you upgrade in the future, you will have to go onto the data share plan, moving away from the unlimited world," he said. "So when you think about our 3G base — a lot of our 3G base is unlimited — as they start to migrate into 4G, they will have to come off of unlimited and go into the data share plan, and that's beneficial for us for many reasons, obviously."

Unlimited data is a concept that has been heading towards extinction for some time now, and Verizon's decision to no longer honor the plans with LTE-capable devices will only expedite the process. AT&T continues to honor grandfathered unlimited plans for 4G upgrades, and Sprint remains the lone major carrier that still allows new customers to sign up for the privilege. Verizon had already been making a clear distinction between LTE and its legacy 3G network, offering data-doubling promotions exclusively to those shopping for an 4G-capable handset.

Story found here: Verizon customers, say goodbye to grandfathered unlimited data plans if you want to upgrade - The Washington Post

[M in LA]

At the moment, all this appears to be speculation, as nothing formal has been announced. That being said (and knowing Verizon), it is likely to become a reality.

After more than 18 years with Verizon (and its AirTouch and PacTel Cellular predecessors), this may force me to rethink staying with them. Though for me, AT&T, Sprint, and T-Mobile aren't much of an option. Been there, done that with all of them.

I'll see how this plays out. Not a good move by Big Red...

[Irish Rose]

We'll see, Mike. However, from everything that I've read including the statement that was made by Verizon's CEO, this does in fact appear to be true. I am not bashing Verizon, as ALL wireless carriers do things like this, but based on Verizon's past history I can definitely see them going ahead with something like this.... Although, I remember not too long ago, when Verizon was going to do something negative and after everyone complained, Verizon pulled the plug on that plan. Maybe the same will hold true with this as well?

[Quint101]

This sucks! Only reason I'm not complaining too loudly is because I am already on a LTE phone, and I'm not eligible for a discounted for another 18 months. Who knows what the other guys will do in that time span? I haven't had many issues with Verizon as of late but coverage is paramount. My other option is AT&T but it is more of the same. Sprint and T-Mobile doesn't have the coverage for me yet.

sent from my DROID RAZR MAXX!

[Irish Rose]

This sucks! Only reason I'm not complaining too loudly is because I am already on a LTE phone, and I'm not eligible for a discounted for another 18 months. Who knows what the other guys will do in that time span? I haven't had many issues with Verizon as of late but coverage is paramount. My other option is AT&T but it is more of the same. Sprint and T-Mobile doesn't have the coverage for me yet.

sent from my DROID RAZR MAXX!

Quint, you bring up a very interesting point here. What is going to happen to the previously grandfathered LTE unlimited data customers?

[Gamer03]

"Verizon, in an attempt to officially clarify all things unlimited data vs. shared data tiers, has published another note and sent an email to the NY Times that should set the record straight. Let’s just say that this note from Big Red is exactly what we already told you in our clarification post from earlier in the day. This was nice of them to settle it once and for all though. Well, for the most part."

The email in bullets:

• Customers will not be automatically moved to new shared data plans. If a 3G or 4G smartphone customer is on an unlimited plan now and they do not want to change their plan, they will not have to do so.
• When we introduce our new shared data plans, Unlimited Data will no longer be available to customers when purchasing handsets at discounted pricing.
• Customers who purchase phones at full retail price and are on an unlimited smartphone data plan will be able to keep that plan.
• The same pricing and policies will be applied to all 3G and 4GLTE smartphones.

Verizon Officially Clarifies the End of Unlimited Data One More Time – Echoes Our Thoughts From Earlier – Droid Life

Verizon Wireless: Updated Statement on Data Plans

[Gamer03]

IMHO, it is only a matter of time before AT&T decides to follow Verizon and start offering tiered shared data plans. So anyone that has unlimited data on AT&T can also look forward to this in the near future.

[Irish Rose]

"Verizon, in an attempt to officially clarify all things unlimited data vs. shared data tiers, has published another note and sent an email to the NY Times that should set the record straight. Let’s just say that this note from Big Red is exactly what we already told you in our clarification post from earlier in the day. This was nice of them to settle it once and for all though. Well, for the most part."

The email in bullets:

• Customers will not be automatically moved to new shared data plans. If a 3G or 4G smartphone customer is on an unlimited plan now and they do not want to change their plan, they will not have to do so.
• When we introduce our new shared data plans, Unlimited Data will no longer be available to customers when purchasing handsets at discounted pricing.
• Customers who purchase phones at full retail price and are on an unlimited smartphone data plan will be able to keep that plan.
• The same pricing and policies will be applied to all 3G and 4GLTE smartphones.

Verizon Wireless: Updated Statement on Data Plans

From Verizon's own "clarification" and link that you posted here, it looks like they are still doing away with their grandfathered unlimited data plans when a customer upgrades their handset at the discounted pricing and signs a new contract. This would also explain how Verizon could get existing unlimited LTE data customers off of that plan as I was wondering about earlier. The only way a customer can keep the unlimited data plan (if I'm reading this quote correctly), will be if the customer pays "full retail" for the handset thereby choosing not to extend their contract. This might not sit well with some considering some of Verizon's top LTE handsets are at least $600 full retail.

Customers who choose to purchase phones at full retail price and are currently on an unlimited smartphone data plan will be able to keep that plan. The same pricing and policies will apply to all 3G and 4GLTE smartphones.

[Irish Rose]

IMHO, it is only a matter of time before AT&T decides to follow Verizon and start offering tiered shared data plans. So anyone that has unlimited data on AT&T can also look forward to this in the near future.

True, AT&T "could" follow Verizon, or they "could" just use this to their advantage and keep their existing grandfathered unlimited data customers like myself, which I'm sure there are are still a lot of. I still think Verizon could change their mind about this as they've been known to do in the past if customers complain enough.

[Irish Rose]

Basically, you can keep your grandfathered plan, but you're going to be paying full price for all your phones from now on. Which, you know, is totally unsensible for the average consumer.

Take the iPhone. A 16GB iPhone 4S costs $200 with a carrier plan. The same 16GB model costs $650 without a contract. That's the difference you'd be paying for the right to keep the grandfathered plan, every time you upgrade your phone. That $450 price gap is the same for all other iPhones, and also the same as the Droid Razr Maxx, which retails at $650 as well, and is available for $200 from Verizon.

Over the life of a two-year contract, that's an extra $18.75 a month, taking your "expanded data" package—which you are still staying faithful to even though the subsidy is meant to retain customers—to $48.75. That's the equivalent, roughly, of a $50 5GB/month plan. So you can still eek out some value under the new rules if you use more than 5GB of data per month. The bad news, though? Fewer than one percent of unlimited data plan holders actually do that.

For everyone else, it destroys all value, and is counterintuitive, considering it's still screwing over the customers who don't abuse their unlimited plans, but still want what they originally signed up for—on principle, or for future-proofing, or for whatever else. The only people who survive Verizon's buzzsaw are the ones who are causing the problem in the first place.

So for all practical intent, Verizon's grandfathered plans are dead to you—keeping them will be a negative value. That is, unless you're a data slob who uses a ton of bandwidth and doesn't mind paying $650+ for a phone every two years.

After reading this article from Gizmodo, there doesn't seem to be a point to paying full retail for Verizon's smartphones just to keep the unlimited data plan. Gizmodo mentions here that Verizon has a 5GB/$50 data plan, when in fact it would actually be 10GB/$50 with Verizon's LTE double data special that they are currently running. Since most people won't even come close to this amount of data I think this might be a better option for most instead of paying full retail for a device..... Verizon Unlimited Data Not Quite Dead, But There's No Point In Keeping It