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Verizon Defends Data Price Discrepancy in Share Everything

By - Source: TechRadar | B 25 comments

Verizon defends why its tiered Share Everything plans are priced so weird.

Recently Verizon revealed that it offers five additional Share Everything plans not listed on the company website. These can be obtained either by calling customer support, or by visiting a local Verizon store. The company said these five plans aren't advertised because consumers typically don't burn through more than 2 GB per month anyway.

The additional plans essentially build upon the 10 GB for $100 per month tier, adding an additional 2 GB to the data pool for an extra $10 per month. That said, the five additional tiers consist of 12 GB for $110, 14 GB for $120, 16 GB for $130, 18 GB for $140. Compared to AT&T's higher tiers, Verizon customers receive the better bargain.

But now several reports are pointing out a huge price discrepancy. For starters, let's make a small chart to show what's going on:

1 GB = $50
2 GB = $60 or $30 per GB
4 GB = $70 or $17.5 per GB
6 GB = $80 or $13.33 per GB
8 GB = $90 or $11.25 per GB
10 GB = $100 or $10 per GB
12 GB = $110 or $9.17 per GB
14 GB = $120 or $8.57 per GB
16 GB = $130 or $8.13 per GB
18 GB = $140 or $7.77 per GB
20 GB = $150 or $7.50 per GB

See the problem? A Verizon customer paying for 20 GB of data per month is essentially shelling out $7.50 per GB. However customers who only need 1 GB of data are paying $50 per month. Since all plans include unlimited calling and unlimited texting, it seems that customers would have a better deal doubling their data pool for only an extra $10 per month at the least.

"Pricing is based on a number of strategies and while cost is a part of the part of the equation, we recognize people are using more and more data," Verizon spokesperson Brenda Raney told TechRadar. "We introduced the Shared Data Plans so customers could share their data service across multiple devices."

That's fine, but the 1 GB customers are seemingly getting ripped off on a massive scale, right? In Verizon’s eyes, it's like heading out to Sam's Club and buying in bulk -- you pay a bunch of money for a large group of Cap'n Crunch boxes bundled together, but if bought individually, the same number of cereal boxes would be more expensive.

"Those customers who purchase more data are effectively given a discount," Raney said. "If I had to use an analogy from a different industry, I would look to the consumer goods where people who purchase in bulk pay less per unit cost."

Hot Hardware questions why consumers can purchase a $60 router that projects Internet across the house, but are charged the same price for 1 GB that's streamed from huge cell towers standing out in the open. Maybe it's because we essentially move from one tower to the next, unlike our wireless routers at home?

Read Hot Hardware's argument -- it presents a good case of how wireless networks are ripping off its subscribers.

 

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  • 17 Hide
    AznCracker , August 10, 2012 6:07 PM
    rip off
  • 1 Hide
    Gundam288 , August 10, 2012 6:10 PM
    I wouldn't be shocked to hear people just "sharing" a share everything plan to save money for just making phone calls and texting if it does work out to be cheaper. (Haven't looked @ the details since I have no intent on going to them given the recent comments/stances/etc.)

    My only question is: How many things can you add to it?
  • 4 Hide
    whiteodian , August 10, 2012 6:14 PM
    Ridiculous prices are why I'm switching to Straight Talk and paying $45 a month for Unlimited Talk/Text/Web. I'll be using my 3 year old 3GS, but plan to buy an International (unlocked) Galaxy S3. I wish more people would take advantage of the non-contract services and put the squeeze on the big phone companies. I am currently on AT&T with unlimited data (grandfathered), unlimited text and 450 minutes. I use less than 1GB of data, about 1K texts, and less than 100 min of phone and pay $100.
  • 0 Hide
    DroKing , August 10, 2012 6:16 PM
    *vomits* Im glad I am getting off sprint's service this fall once my contract is up. All of the contracts are bunch of ripp offs hidden under fees. Going straight to prepaid world wheeeee.
  • 0 Hide
    wildkitten , August 10, 2012 6:17 PM
    jacekringI have unlimited data from Verizon, grandfathered. Wonder if I can move that over to a share everything plan and then sell phone numbers for a monthly fee on ebay I won't charge $50! How about $45?

    Problem is you won't have that plan for long. From reports, the moment you change calling plans or even get a new phone, you lose it.

    http://www.usatoday.com/tech/news/story/2012-05-16/verizon-wireless-unlimited-data/55028254/1

    "As you upgrade in the future, you will have to go onto the data-share plan," Shammo said. "A lot of our 3G base is unlimited. As they start to migrate into 4G, they will have to … go into the data-share plan. And that is beneficial for us."

  • 4 Hide
    jtsyo , August 10, 2012 6:22 PM
    Gundam288I wouldn't be shocked to hear people just "sharing" a share everything plan to save money for just making phone calls and texting if it does work out to be cheaper. (Haven't looked @ the details since I have no intent on going to them given the recent comments/stances/etc.)My only question is: How many things can you add to it?


    You have to pay per device you add to the plan. Not worth it for just voice and text.
  • 0 Hide
    burmese_dude , August 10, 2012 6:24 PM
    I currently have a 3G unlimited with Verizon. Anybody got a good advice what I should do come next year when the contract ends and I can get a new phone but I would have to leave 3g unlimited plan?

    I don't want a 4g capped plan and I don't want to pay 500 to 700 from for a new phone to keep 3g unlimited plan.
  • 4 Hide
    subasteve5800 , August 10, 2012 6:25 PM
    Wasn't Verizon's whole argument for these ridiculous data tiers that "our networks can't handle the excessive amounts of data people are using"?

    The way these plans are structured, it looks like Verizon is encouraging people to use more data.

    Just more BS from Big Red. If another carrier had halfway decent coverage in my area, I'd switch in an instant.
  • 1 Hide
    amstech , August 10, 2012 6:32 PM
    Verizon is one of the best, most efficient companies at being scandalous. They are professional con artists and have been for several years. They have all types of bullshit charges and fee's. Terrible, overpriced plans and horrible customer service. Thier signal is fantastic and its the only reason people stay with them.
  • 1 Hide
    burmese_dude , August 10, 2012 6:33 PM
    jacekringGet the iPhone 4S, it's only 3g. That's the best 3g phone out there right now....otherwise you might be screwed.


    There's got to be other options. I'm Android all the way. I don't support any Apple products.
  • 0 Hide
    heizenbrg , August 10, 2012 6:42 PM
    Interesting article on Forbes: http://www.forbes.com/sites/ciocentral/2012/06/13/the-mobile-data-economy-how-much-do-you-need/

    Someone should start a petition or something, that molly girl did it and owned BOA for the 5$ debit card fee. This is insane, just started the 2 yr 8gb share everything yesterday, but I knew how much I was going to pay, even the hidden fees. Verizon, If you really want to charge a shitload for data, AT LEAST take off that ABSURD 35$ activation fee. You got that PLUS a 40$ for smartphone. About their hidden taxes,If you read their contract carefully they say that most aren't state taxes but applied from Verizon as a whole. They have a monopoly, and they should be controlled.
  • 0 Hide
    ntrceptr , August 10, 2012 6:53 PM
    Maybe i'm getting old but i will not change to a smartphone unless it's straighttalk or similar. I refuse to pay for internet a second time. I pay alot for my home connection and see no need to check facebook every 5 seconds. Compete with the prepaid and we can talk, i'll need 3-4 phones unlimited everything.
  • 4 Hide
    teh_chem , August 10, 2012 6:53 PM
    I'm less concerned about the price/gb discrepancy between the 1GB plan and the 20GB plan. I'm more concerned with the fact that 1GB costs $50. That's an absurd price. At the sacrifice of the broader network, you can get a virgin mobile plan for $55/mo with unlimited everything and no lame monthly contract.
  • 1 Hide
    kryten42 , August 10, 2012 7:05 PM
    I'm confused. You're saying the $50 for 1GB includes unlimited talk and text, but your calculations all act as if the talk and text is free.
  • 0 Hide
    seanhallam , August 10, 2012 7:44 PM
    Not worth it, This is a total scam. This is the reason i only have a prepaid phone.
  • 1 Hide
    heizenbrg , August 10, 2012 7:52 PM
    ntrceptrMaybe i'm getting old but i will not change to a smartphone unless it's straighttalk or similar. I refuse to pay for internet a second time. I pay alot for my home connection and see no need to check facebook every 5 seconds. Compete with the prepaid and we can talk, i'll need 3-4 phones unlimited everything.


    Yes, If it weren't for GPS signal and the usefulness of traveling with an internet connection( checking out restaurant's, cheap motel, finding the latest bargain on craigslist while you're on the road) I would stick to those old Nokia phones my grandma has, you now the black & white ones that are like totally unbreakable? fuck gorilla glass those phones where the best, snake owned fruit ninja soooo sosooo much
  • -1 Hide
    pierogi210 , August 10, 2012 8:13 PM
    I'll stick with my unlimited data plan that i still have. :) 
  • 0 Hide
    kelemvor33 , August 10, 2012 8:13 PM
    Yet another reason to use something like Virgin Mobile. Unless you use more than 300 minutes per month, $30 or $35 gets you unlimited data (throttled after 2.5 gigs). I love my $25/mo grandfathered plan. I never use minutes I either text or call from home/work.
  • 1 Hide
    kelemvor33 , August 10, 2012 8:16 PM
    heizenbrgInteresting article on Forbes: http://www.forbes.com/sites/ciocen [...] -you-need/Someone should start a petition or something, that molly girl did it and owned BOA for the 5$ debit card fee. This is insane,....


    Money talks. If more people say F You to Verizon and the rest and start hopping onto prepaid, maybe they change.

    Virgin Mobile gets you unlimited data for $35/mo. Includes 300 minutes. $45 is unlimited data and 1200 minutes. Who needs more than that. And that's everything included. Not a separate fee for voice and data and such.
  • 0 Hide
    dalethepcman , August 10, 2012 9:32 PM
    I have six words/acronyms for verizon "Thanks for the 3g unlimited MiFi" They can suck it for all their current data prices, i'm keeping this bitch forever..
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