Verizon to drop unlimited data plans for upgrades from 3G to 4G LTE

Roger Cheng/CNET

(CBS News) Verizon Wireless announced Wednesday plans to drop their $30-a-month unlimited data plan for a tiered data model for customers who want to upgrade from the 3G network to 4G LTE.

Fran Shammo, Verizon Communications chief financial officer, told investors at the J.P. Morgan Technology Media and Telecom conference Wednesday that the company would drop unlimited plans for long-time customers who were able to keep their original 3G data plans.

"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," Shammo said to investors.

"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."

To be clear, "data share" is using one data plan for multiple devices. Mobile phones and tablet computers typically have separate plans.

While a data share plan may actually benefit customers who have smartphones and tablets on separate plans, it may leave people who don't have a tablet out in the cold.

Details of exactly when the changes will take place and what the plans will look like are still unclear. Verizon released a vague statement on its website, only suggesting that customers have been requesting shared data plans.

"Customers have told us that they want to share data, similar to how they share minutes today. We are working on plans to provide customers with that option later this year," Verizon said.

When asked if customer with unlimited 3G data plans would be grandfathered in, or be able to keep their plans, a spokeswoman for Verizon told CBS News customers who don't upgrade their plans won't be affected and sent an official statement via email.

"Historically, we have never forced customers to change their plan if they are not upgrading their phone or if they are within the terms of their contracts," Verizon said in an emailed statement.

Of course, Verizon's rhetoric only addresses customers who don't upgrade their plans. As smartphones evolve, the move from the 3G network to 4G LTE will likely be on the rise.

[sloar]

And Verizon wonders why people don't trust them!! This is the biggest fraud they've pulled yet! Time to switch, my contract's up and I'm gone!

[timmyj2007]

had OUR 3g mifi for 3 yrs now doenst work in the evenings to well if at all,, they say two many people and they tell me i will loose my unlimited if i switch to 4 g NEW MIFI. but i heard that happens all the time..I'm rural..why do i have to give it up if i am still part of the same system?we use it for our homecomputer and are often over their 10 g limit. lets face it our programs are always updating themselves, we arnt using it for phones. toO bad wind stream and charter wont come down my street. I would really like that.If your mifi stops getting 4g.it get 3g so whats the diff??
I am really tired of verizons "do as we say: ********.

ANYONE UP FOR A CLASS ACTION LAWSUIT????????????????????? I sure am ??????????????????

[Lilapps]

The only reason I have not already left Verizon is because of my Alltell contract. This is just the reason I need to leave Verizon PERMANANTLY! Their plans are worse than the All-Tell plans. It is time to switch.

[jkhersh]

Everyone should drop their data plan and watch the ceo squirm as revenues drop hand over fist. I have been a verizon customer for 17 years and I am seriously considering dropping them

[sloar]

I'm dropping mine! Time to go to T-Mobile or Sprint.

[qmpash]

How about changing the name to Scamizon?

[janeylawrence333]

I was a Verizon customer for 8 years. Back before they were a big name. I sat down about 2 years ago and went over my bill. I was paying 59.99/mo for 900 min, 20 for text unlimited, and 30 for unlimited internet. I now how AT&T- I NEVER go over my minutes as I have unlimited calls to all cell phones...450 min for land lines, with roll over which means whatever min i don't use- go to my next month so if I use more min one month then another- I don't get charged overage. Plus when I left Verizon, even though I payed my termination fee (which by the way was $300) they still charged me for the phone (which was free with upgrade - so I assumed the termination fee was to cover equipment charges- but no...which by the way I am still fighting with them about) - but in the long run- I have a 4GLTE phone- I have unlimited internet access- unlimited calling to cell phones- unlimited texting- and I spend 89.99 instead of 129.99- hmmmm yep it's a no brainer for me...but Verizon will still make money because consumers are too big of idiots to figure out they are getting screwed....PS did you know most cities (even mine of 4k people) have unlimited WIFI that blankets the town for 9.99...so if cell companies would allow us to not pay for data plans, or have minimal ones that were like 10/months...we would all save money.

[jarvila]

Verizons latest scam as of about 2 weeks ago is to charge EVERYONE $30 for your "Free every 2 year upgrade" EVERYONE! So if you get either a free "dumb" phone or a state of the art Smartphone for a discounted $200 you ALL WILL GET CHARGED $30.

If one million Verizon customers a year get any type of new "Free" phone from $0 to $300 discounted price then Verizon sticks $30,000,000 in their back pocket (bottom line)!

Should the Verizon manager who thought up this customer rip-off get a million $1,000,000 dollar bonus this year? I'm surprised thousands of customers aren't screaming about this little trick on a supposed "Free Phone" every 2 years. I'd signup on a class action suite if any "legal beagle" starts one.

[KansasCity-2012]

In general, the user trend for wired and wireless users has reflected increasing demand for bandwidth. The average user has increased dependency on data and internet access. Verizon, AT&T, & Sprint know that once a user has established a usage pattern, they will not change it and become willing to pay more just to keep what they have.

Computer and Smartphone addiction is a consumer habit that service providers have worked very hard to establish. It is the best way to create long term clients and grow revenues.

Few people can voluntarily do without their computers or smartphones for more than a few hours. It's a fact. Telecom infrastructure is transforming and polarizing consumer behavior into usage patterns more permanent than radio or TV ever did!

[hypnotoad72]

Streaming and the cloud - aren't they great and big cost savers for customers?

Apparently not. ;-)