Wednesday, June 13, 2012

Verizon pricing changes raise controversy as dependence on cellular wireless grows

A major front page story in the Wall Street Journal Wednesday by Anton Troianovski and Thomas Gryta describes major pricing changes by Verizon aimed at data services and reversing a past trend toward lower costs. The link is here

New customers will have to pay for “data buckets” in 2GB or 6GB increments, and will find multi-device plans more economical.  Existing smart phone customers can keep unlimited data plans, but would have to pay full price for new smart phones when contracts expire in order to keep unlimited use.

The policy raises concerns, because as 4G cellular wireless becomes stronger, customers will want to use it (for example, by using Verizon's new iPad as a hot spot) because they don’t need storm-vulnerable land wire connections in many cases.  

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