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    CR analysis: Tiered data plans won't change bills for most Verizon smart-phone users

    Consumer Reports News: July 06, 2011 03:08 PM

    As of tomorrow (July 7), Verizon will have replaced its $30-a-month unlimited plan with three new plans with varying data limits. But the least expensive of those is also $30, and it offers 2GB of data per month. That's far more data than the vast majority of phone users ever need—even Verizon smart-phone subscribers, who reportedly have relatively large appetites for data.

    Our past reporting, as well as other more recent reports from the likes of MSNBC, indicate that data usage, even by Verizon smart-phone users, averages no more than about 500MB per month. And many customers, of course, use far less than that—including owners of some regular phones (detailed in our Ratings, available to subscribers) that require a data plan, even though they can't use the data-intensive apps that distinguish smart phones.

    Unlike other major carriers, Verizon has not introduced a lower-priced tiered plan for the many smart-phone owners who send and receive only a small amount of data every month. For example, minimal data users on AT&T can get a 200MB-a-month plan that costs $15 (its 2GB plan costs $25 a month). T-Mobile's plans are even cheaper, at $10 ( 220 200MB) and $20 (2GB) a month.

    Minimal data users on Verizon will, then, continue to pay the same $30 they've been paying for the unlimited plan. The small percentage of data hogs among the carrier's customers will pay more: $50 a month for 5GB or $80 for 10GB.

    [UPDATE: As we stated in our previous post, Verizon's new data plans won't affect current subscribers already enrolled with Verizon's $30 unlimited data plan. -- Ed.]

    The amount of data used by smart-phone owners may, of course, increase in the future. That's especially true if they're on networks, including Verizon's, that are about to be upgraded (or expanded) to significantly faster 4G technology that may encourage greater data use by considerably increasing download and upload speeds. So far, Verizon isn't charging more to service the relatively few phones that run on its LTE 4G network. But that could change: Sprint, for example, charges a $10 premium on plans for its 4G phones.

    Want more detail? See our updated comparison of data plans from the major carriers.

    Related:
    AT&T kills unlimited data plans for new iPhone and iPad customers
    CR analysis: T-Mobile's new data plans could widen cost gap with AT&T

    Paul Reynolds


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