Adios Verizon, hello Sprint?
If you intend to buy a smartphone running on Verizon's network, get ready to pay more for the privilege At 12:01 today, Verizon dumped its unlimited data plan leaving the congenital dawdlers among you with one fewer dollar-saving option to choose from.
Even worse, the trend is not likely to reverse direction. For carriers like Verizon, unlimited pricing has become an increasingly less attractive option, especially given the exploding growth in data traffic (not to mention the commensurate burden on carriers to spend big bucks on upgrading their networks.)
But what about the "little people" (as Leona Helmsley once so charmingly referred to the rest of us.) Prices for smartphone subscriptions are not exactly cheap and if you want to take advantage of the cool things an Internet handset offers, such as watching video, web browsing, or listening to music - you know, the cool things that are the supposed selling points of buying a smartphone - this creates no small amount of anguish for budget-conscious shoppers now in the market for a handset.
But you know the old adage about the proverbial silver lining attending every storm. Just because Verizon is bowing out doesn't necessarily put the kibosh on unlimited data plans. Roger Cheng at CNET has a terrific analysis piece up this morning detailing how this might play out as well the potential opening it opens for Sprint to appeal to folks such as yours truly who still retch at the prospect of paying so much money for a phone
Fact is that there aren't many other options. The other major carrier in the market, AT&T, earlier dumped its unlimited data plan and instead now offers a tiered model. It also has a definitive agreement to buy T-Mobile USA (now awaiting regulatory approval.) For its part, T-Mobile has been taking its own measures to deter data hogs, so that leaves Sprint as the only national carrier offering unlimited data with no strings attached, a narrative that Cheng observes could translate into a rare advantage for Sprint.
"Sprint, which has hinged its turnaround on more affordable, simple, flat-rate pricing plans, is expected to press its advantage. It could also become a major selling point if it also ends up carrying Apple's iPhone."
The good news for shoppers - at least for now - is that Sprint intends to stick to its current pricing strategy. Earlier this year, it upped the price of its plans modestly, a move that should allow it to keep the all-you-can-eat option for quite some time. If consumers begin voting with their feet - and wallets - this could turn out to be quite an interesting turn of events.
For more about this, check out Verizon's new pricing plan is a godsend for Sprint
