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The carrier.

Look back to when unlimited was introduced.

2007 $20 unlimited. I actually opted out of data for a while back then when it was still possible.

2008 $30 unlimited required for 3GS.

2010 $15 200MB $25 2GB required

Prior to 2010 Unlimited was the only option. If you already paid $30 for unlimited, most didn't give it up for a $5 savings. If you were a light user the $15 plan made sense.

Unlimited data was offered and required when few used a lot of data.

Yeah but you have to consider how much data was being consumed back at the years specified.

The fact of the matter is, pushing data via cell towers was "relatively new" (let's not split hairs here folks) to consumers back then.

Often times, when some new form of technology or service changes or becomes available to new markets, a "manufacturer" or service provider will give good deals to people to increase consumer adoption of that product or service.

If you live in the states, you can probably relate to cable providers using similar marketing techniques. "We'll give you XYZ for $20/month*...." Then, 3 months later, the price of it goes up. Many times a cable provider will indicate that the offer is only good for 30 days or 90 days or for the term of your one-year contract. Point is -- the terms usually change and the prices usually go up as more users subscribe.

Data plans on phones aren't any different. Verizon did EXACTLY what they any other organization would do in their position.... lure people in with excellent marketing ("UNLIMITED OMG WTF BBQ" data), giving a cheaper rate to those early adopters but forcing them to pay for something that they'll never be capable of using (i.e. unlimited data... remember the pre-smartphone data-capable phones? Yea... you could never use "all you can eat" data on those things.) then, as more people start using it, allow the early adopters to keep their plans if they so choose, but force latecomers onto a more profitable pricing scheme.

Trust me, you may not like it, but it's not the first time something like this has been done... it's done over and over in different industries.
 
If on contract with ATT, you can not get the 200 price tag for a new phone every year. You must wait two years or pay the early upgrade price (which is an additional 250) on top of the fully subsidized price.


http://www.att.com/Common/about_us/files/iphone/pricing_fact_sheet_ip4.pdf as well as
http://www.computerworld.com/s/article/9215498/AT_T_hikes_iPhone_early_upgrade_prices which states ATT raised the early upgrade by 50

As you can see, if you are a new customer or at the end of your contract, you pay the fully subsidized price. If you have not yet fulfilled your contract, you pay 250 on top of the fully subsidized price. The full price is 450 on top of the fully subsidized model

As you said, do the math

I've gotten the fully subsudized price each and every year, including last year.
 
3.78 litres to one us gallon.
3.78*$2.25 = $8.50

Gas in US is about $3.80 per gallon these days, varies up and down about $.20 depending on where you buy it.

MANNNNNN......

Good job I've got the new iPhone to cheer me up! More than double here?

:(

I remember when I was in the states for 3 months and I filled up, it took forever for the numbers to go round! haha :)
 
Again, it seems like you and others are thinking only about your personal situations while discussing the business plan of a company that serves 90,000,000 customers. That doesn't make sense.

It makes PERFECT sense... I am certainly considering my personal situation but even more so, I REALLY AM CONSIDERING THE OTHER XX,XXXX Verizon customers. I'm recalling a statistic that I can't find right now but it went something like the top x percent of data consumers were consuming yy percent of the data. x being a number like 5 and yy being a number like 35 or something like that. The point is -- there are only a handfull of customers that are using a LARGE amount of data.

The same usage patterns exist on other carriers as well. This is what spawned the throttling of unlimited data that had sprint or ATT customers (whoever it was) all up in arms about being throttled on their "unlimited" data.

I would venture a guess that some graph/chart/statistic that Verizon owns shows that data consumption is going up... rapidly.

Considering the above couple of points, the changes reflected in the plans make perfect sense. I'm not saying I agree with them or disagree with them. I'm just saying that from a business perspective, they make sense. Trust me, we're a niche group. The fact that we're on the internet chatting about all of this immediately makes us a minority. Most people don't know and don't care. Verizon isn't going to alienate (or "piss off") the majority of their customer base. They're not dumb. It's my thought that they likely know exactly how many people are going to be directly adn negatively impacted by the change. My second thought is that they are willing to take that risk and the only way they'd be willing to do that is if that were a small small portion of their entire customer base.

Yes, with your current usage (which is extremely minimal) you should be on a capped/shared data plan and save money. But for people that use smartphones for media and "smart" activities rather than just calling/texting/and checking email twice a day, unlimited is the best thing ever.

Again, it seems neither of us have hard stats to back our thoughts but I would fall back on the prospect that the majority of the 90,000 (or whatever the number is) customer base has data consumption habits closer to my situation rather than yours. Considering the small niche that is the Macrumors crowd, I would say you're more likely to find people with consumption habits matching yours versus mine (here on macrumors). I don't think every single verizon customer is an active participant on Macrumors.

Heck, I have N.O.V.A. 3 installed on my phone and when they decide to fix a few bugs or change the UI and they push out an update that is 1,700mb that I use on Verizon's LTE network! If i had to make sure I was at a wifi spot everytime i wanted to update my apps, use skype, watch netflix, or listen to Pandora, that would be annoying. It restricts the freedom that cell phones are supposed to give you.

This is EXACTLY why Verizon is doing what they're doing! More data being pushed = more taxing on their system != their problem/fault! They're putting the ball back in the court of the consumer so to speak. Instead of carelessly downloading a 1.6 GB update, they're forcing consumers to THINK before consuming that much data. Sure, you can still do it... but you gotta pay! I don't see a problem with this. Updates used to be small and less taxing. There used to be way less apps that needed updates. There used to be way less smartphones on the market. I'm sure if Verizons infrastructure were able to freely grow at the same rate as smartphone/data adoption/consumption with no extra cost to Verizon, we probably would CONTINUE to see the same type of data plans.

because there are more users where there used to be less and the infrastructure is growing at a much slower rate than the rate of people jumping to smartphones -- something's gotta give. It's almost as simple as basic supply and demand.

So yes, YOU should not have been paying $50 a month so that your wife can check her living social app and facebook app once a day (at least what my wife does :). But not everyone uses their phones like you or your wife and some people actually get an AMAZING value from paying $50/mo for unlimited data.


Neither of us have Facebook on our phones and she obviously doesn't check any social-networking type apps (or I'm sure her data consumption would be much greater). I use my phone quite a bit even without facebook (I do have other social-networking apps). I keep our settings conservative on our respective devices. If others choose to not do that, that's on THEM...

by the way... I'm not picking on you or trying to start any kind of e-war... I'm trying to have a discussion on a topic that I feel is very misunderstood by the average consumer.
 
Yeahhhhhhh, Leonard1818....I imagine you are a VERY intense person in real life, with a beard, and hopefully a fine brew in one hand.

I think there is miscommunication in that I thought you were speaking about your own situation, how it didn't make sense to pay for unlimited data. I was addressing that and saying, "Great, but for many people, it does make sense to have unlimited data and that number of people is only growing (we are all going towards MORE internet use, not LESS)"

Your response seems to be talking about a Verizon Business perspective and you are right. It makes sense for them to cap data, throttle data, make people share data, etc.

I realize most Verizon/ATT customers are not on macrumors, but I also do not believe the majority of either carrier has consumers with your data habits. If there were 46 million people on Verizon that used 300 mb or LESS data per month I would be SHOCKED. And my next question would be, "Why are they paying the high Verizon prices when they could go ANYWHERE and save money?" Some would answer it's still a better network to make calls on but for most people another network would work just as well if not better in their particular location.

As i said, my wife never updates her apps, doesn't do anything crazy on her phone and she will hit 900mb - 1gb this month again. I don't have stats, but it is very obvious that as a society, we are going towards MORE data usage rather than less. The carriers all know this and that's why the 2 biggest just came out with shared/capped data plans for everyone. They don't care about giving away unlimited voice/text with the plans because they know the money is with data.

Probably just miscommunication between us but i agree with you it makes sense from a Verizon business perspective to offer their current plans. I think we just disagree on the part of the average data usage for a VZW or ATT customer. I would wager the average over all 180 million users is much closer to 1-2gb than 300mb like you used.
 
I might be paying full price so I can stay on my grandfathered unlimited plan

You know you can grandfather into the unlimited plan and still sign a new 2 year contract to get the discount, right? That's what I've been doing.

Clarification: At least with AT&T
 
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I am currently with AT&T but out of contract already with an iPhone 4. I really hate AT&T and would love to dump them, except I do want to buy the new iPhone 5. I am debating whether to get into a new contract with AT&T or move to something like StraightTalk, which I just learned about. It's a no brainer with the current phones, but I don't know how things are going to work with the new iphone and StraightTalk, I guess it's a wait and see which features in the new phone won't work, right? Probably no LTE? though I am fine with 3G speeds.
 
I don't know how it works in America, but here in italy you can get this:

- unlimited internet (you have 2gb high speed and then you get throttled until the end of the month)
- 2000 sms per month
- you can call 1 number for free

this is prepayed and it costs 11 euros per month (9 euros for the first 2 years).

with one other carrier you get:
150 minutes of phone calls
150 sms per month
unlimited internet: (you have 1gb high speed and then you get throttled until the end of the month)

this is also prepayed. It costs 9 euros per month.

Not bad and when something more convenient comes along you can switch carrier anytime you want. =)

The iPhone 4s 16gb is 650 euros. Quite expansive. But every year i sell last year iPhone for about 500 euros. So upgrading to a new iPhone is just about 150 euros per year.


Of course you can use wifi hotspot with no additional charges and, hopefully, this will be true for Facetime 3g as well
 
In the UK it's very worth it if you're willing to join giffgaff and put a little work in.

Currently I pay just £10 a month for 250 minutes, unlimited texts, and unlimited data.

Not only that, but if I post on their forums and answer questions, I get paid. If I hand out SIMs and they get activated, I get paid. I actually make a profit from my network every month because I'm active on the forums and rack up as many activations as possible.

I tend to get about £70 every few months, but the truly dedicated can make a lot more. I know a guy who made over £300 in one payback period and the highest paid giffgaff user got over £14,000.

So yeah, for me the upfront cost of buying the iPhone outright is way worth it ;)

P.S. If you want a free giffgaff SIM with £5 free credit PM me, I'm not allowed to post affiliate links on the forums.
 
Yeah but you have to consider how much data was being consumed back at the years specified.

The fact of the matter is, pushing data via cell towers was "relatively new" (let's not split hairs here folks) to consumers back then.

Often times, when some new form of technology or service changes or becomes available to new markets, a "manufacturer" or service provider will give good deals to people to increase consumer adoption of that product or service.

If you live in the states, you can probably relate to cable providers using similar marketing techniques. "We'll give you XYZ for $20/month*...." Then, 3 months later, the price of it goes up. Many times a cable provider will indicate that the offer is only good for 30 days or 90 days or for the term of your one-year contract. Point is -- the terms usually change and the prices usually go up as more users subscribe.

Data plans on phones aren't any different. Verizon did EXACTLY what they any other organization would do in their position.... lure people in with excellent marketing ("UNLIMITED OMG WTF BBQ" data), giving a cheaper rate to those early adopters but forcing them to pay for something that they'll never be capable of using (i.e. unlimited data... remember the pre-smartphone data-capable phones? Yea... you could never use "all you can eat" data on those things.) then, as more people start using it, allow the early adopters to keep their plans if they so choose, but force latecomers onto a more profitable pricing scheme.

Trust me, you may not like it, but it's not the first time something like this has been done... it's done over and over in different industries.


I agree with parts of what you said.

The best way to sum it up for me was I didn't agree with their plans, so I used the best voice I have. My wallet. Canceled my ATT contract and am enjoying ST at a lesser monthly price for same service.
 
Yeahhhhhhh, Leonard1818....I imagine you are a VERY intense person in real life, with a beard, and hopefully a fine brew in one hand.

I think there is miscommunication in that I thought you were speaking about your own situation, how it didn't make sense to pay for unlimited data. I was addressing that and saying, "Great, but for many people, it does make sense to have unlimited data and that number of people is only growing (we are all going towards MORE internet use, not LESS)"

Your response seems to be talking about a Verizon Business perspective and you are right. It makes sense for them to cap data, throttle data, make people share data, etc.

I realize most Verizon/ATT customers are not on macrumors, but I also do not believe the majority of either carrier has consumers with your data habits. If there were 46 million people on Verizon that used 300 mb or LESS data per month I would be SHOCKED. And my next question would be, "Why are they paying the high Verizon prices when they could go ANYWHERE and save money?" Some would answer it's still a better network to make calls on but for most people another network would work just as well if not better in their particular location.

As i said, my wife never updates her apps, doesn't do anything crazy on her phone and she will hit 900mb - 1gb this month again. I don't have stats, but it is very obvious that as a society, we are going towards MORE data usage rather than less. The carriers all know this and that's why the 2 biggest just came out with shared/capped data plans for everyone. They don't care about giving away unlimited voice/text with the plans because they know the money is with data.

Probably just miscommunication between us but i agree with you it makes sense from a Verizon business perspective to offer their current plans. I think we just disagree on the part of the average data usage for a VZW or ATT customer. I would wager the average over all 180 million users is much closer to 1-2gb than 300mb like you used.

Yeah, you're probably right. Most people probably do use much more data than me. Hell, I work in the tech industry with a bunch of "tech" type people and I've already had to lecture TWO of my coworkers on the advantages of (and reprocussions of not) allowing your phone to automatically connect to yoru home WiFi!!! My one coworker said she was super pissed about Verizon's share everything plan. She told me how much data her and her kids were using and I thought it was high. I told her that she needs to set them up so that their phones will pick up their home wifi and use it when at home. I showed her how to do it on her phone (android) and she did it for her kids. Her data consumption is DRASTICALLY lower... I just can't believe how many people are ignorant to the different methods of transmitting data (3G/4G/Wifi) and how it impacts their consumption and phone bill.

Another coworker was complaining because his kid wanted to play with his iPhone all the time but he was worried about using all of his data up. I had to explain to him how to turn on wifi and that it will connect to his home (apartment) wifi when he's there and as long as it's up and running properly, he doesn't have to worry about his kid using up all of his data since he's on a capped plan.

I've fully given up on explaining to my parents the difference between wifi at home, wired connection at home, the internet that you get at "Panera" and the difference between 3g and 4g (that was fun when they were deciding on what iPad to buy...). It's like I'm speaking Greek. They just dont' get it. They don't understand that Verizon puts out two types of signals that your phone can accept (3g and 4g) but your phone can also pick up wireless internet (wifi) at your home and you can also connect to what are called "wifi hotspots" which are free public internet provided by business and some cities. It's like I'm saying "Sheep hairy french dog ketchup on time for bugs and yellow sign log fish"...

Unfortunately it's this ignorance/complacency that contributed to us getting here to begin with. Even for people who KNOW how it all works, I'm sure there are people out there who do things like donwload a huge update or whatever while not on wifi. Now, Verizon is just holding people more accountable, that's all.

On a personal note:
Unfortunately, I don't have a beard. Maybe for "no shave november" :D I generally have the "I haven't shaved for two days" thing going on (because I don't shave often) and I do enjoy a fine craft brew from time-to-time. After class last night I endulged in a Bells Hopslam. You're probably asking yourself: "How did he get a Bells Hopslam in September?!?!" Well... you just have to be patient!

On a side note:
As I was typing this I got an IM from a co-worker alerting me to the fact that the school district that rents out offices above mine has just opened up free wifi!!! My company (who shall remain nameless and shameless) forbids wifi for security reasons. For this, I have to sit at work all day using ONLY data from verizon.... Not anymore!!!! Now my data consumption is going to be REALLY low... lol
 
I definitely used to always connect to my home wifi and would use around 750mb-1gb of data. Then i tested my speedtest app and realized VZW LTE was 2-5 times as fast as my 15mb Comcast connection (it only every gave me 6-8mb down). So I started using more LTE at home because it was faster.

What got me to cancel Comast is that a Verizon CSR told me I had the option of adding unlimited 4G hotspot to my phone for $30. My Comcast bill was $55 with the modem rental. Saves $25 right there, so a no-brainer. There was no point in paying double for data at home just so i could have an always on connection.

It's also really nice that VZW LTE has super low pings. So my call of duty/counter-strike gaming sessions aren't ill-affected at all.

Never heard of a Bells Hopslam but it sounds good. Had a Guiness Black Lager last night though and I'm fairly fond of those.
 
In Aus

I always prefer to buy mine outright, as it just gives me the option to move and I have the cash up front and who knows what the next 24 months will bring. I signed a new contract with the 4 and under my providers current plans it will cost me about $20 a month more for the same amount of credit and data (damn you telstra) then the phone will be about an additional $15 a month anyway.

Don't complain too much about your out right prices, the US gets a bargin compared to Australia. Current 4s prices;

Australian Prices
64 AU$999 = US$1036
32 AU$899 = US$932
16 AU$799 = US$828
 
I definitely used to always connect to my home wifi and would use around 750mb-1gb of data. Then i tested my speedtest app and realized VZW LTE was 2-5 times as fast as my 15mb Comcast connection (it only every gave me 6-8mb down). So I started using more LTE at home because it was faster.

What got me to cancel Comast is that a Verizon CSR told me I had the option of adding unlimited 4G hotspot to my phone for $30. My Comcast bill was $55 with the modem rental. Saves $25 right there, so a no-brainer. There was no point in paying double for data at home just so i could have an always on connection.

It's also really nice that VZW LTE has super low pings. So my call of duty/counter-strike gaming sessions aren't ill-affected at all.

Never heard of a Bells Hopslam but it sounds good. Had a Guiness Black Lager last night though and I'm fairly fond of those.

Liquid awesome:

http://beeradvocate.com/beer/profile/287/17112
 
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