Announced price hikes by Verizon signal more increases coming
This week, Verizon made an announcement about their new pricing plans which go into effect on June 28th. These changes have created a lot of discussion both supporting and opposing the changes which are coming. And this is a continuation of changes by Verizon and other wireless carriers to move people into the new plans basically so they can gain more revenue. Exactly how this works out for various types of accounts is still a big discussion which is going on right now. If you have unlimited data today, this will impact you the most.
Those of you who have unlimited data plans and want to keep them have two choices. You can purchase a new phone prior to June 28th or you can pay the unsubsidized price for a new phone after that date to keep your unlimited data. Those are the only choices and is obviously an attempt to get people off the unlimited data plans. Verizon keeps making changes to either take things away or charge more and this is just another example of that activity. This is what the industry is doing right now. For loyal customers, they are offering fewer incentives to stay with Verizon, such as the old free every 2 years plan where you got a $100 discount on a new phone when you signed up for a new 2 year contract at the end of your current one.
Wireless carriers do not appear to value long term repeat customers as they have in the past and the gradually increasing costs for less data shows just where they are going. The discussions about whether these changes are good or not is continuing to be discussed. And Verizon finds themselves having to defend the new plans. Many are still looking to determine the impact of the changes though in the end it may not really matter. It is expected that other carriers will follow Verizon’s lead and force changes to reduce data usage for higher fees.
Like the airline industry who has been breaking out charges for things which were previously free, Verizon and other wireless carriers have shown a willingness to change fee structures and ultimately offer customers less than what they previously had. The most recent case which Verizon announced this week is for “Share Everything” which ultimately results in less data usage available while forcing unlimited voice and texting to customers. In the end, wireless carriers are going to have their customer satisfaction decline much in the same way that the airlines have seen because of increasing charges for baggage or paying for food.
While Sprint may get increases in customers with their unlimited data, we expect they will have to make changes in the near future to increase their revenue with data hungry mobile devices. What to you think about the changes?