Verizon announced this morning that it is simplifying its data plan strategy with the introduction of new S – M – L – XL options. “So a plan with small, medium, large and x-large choices makes sense for the way people actually use their wireless service”. Subscribers who bought family plans for 6GB of data per month will now pay $5 more for the same terms with the new plans.
The new plans, which go into effect August 13, aren’t necessarily cheaper nor are they more expensive. Also as before, Verizon will offer some bigger bucket allotments, but you’ll have to call in to learn what they are according to the carrier. But when your contract ends, Verizon will automatically lower your access fee, and you are free to move to the new plans (or you can keep your existing plan).
In the past, Verizon had separate plans for single lines, and also charged more per smartphone when paired with a small data bucket than when tied to a large one. A smartphone is $20, a tablet or Wi-Fi hotspot is $10, and a connected device, like a smartwatch, is $5.
As much as 24 analysts have advised buy on Verizon Communications Inc.
Once you select your plan, you’ll pay a per-line access fee for each device that’s on the plan. But if a customer is on a contract, the person would have to continue paying $40 for the access fee until the contract is up.
When Verizon’s geese come home to roost, they’re going to find a whole different set of smartphone plans. So at least this way it’s easier to add up and decide on a plan.
The changes won’t be universally embraced. Verizon is the largest carrier in the US and I think most customers were satisfied thinking they were getting a new iPhone for $200. That adds up if you have a large family with multiple lines. With the move, Verizon’s upgrade options will no longer be known as Edge.
Verizon said it wanted to clear up the confusion between megabytes and gigabytes, sticking with one standard in its plans. During the past week, the shares have seen a change of -0.32% in the shares.The block trade data suggests an inflow of $57.23 million in upticks and an outflow of $6.77 million in downticks.
The changes come as T-Mobile, in particular, has stepped up its own offerings, including a plan that gives each individual 10GB of data.