Verizon Still Experimenting With LTE Pricing Models
In an interview with The Wall Street Journal Thursday, Verizon CEO Ivan Seidenberg said that the company was considering charging customers on the basis of both their connection speeds and the amount of total data they consume.
But Seidenberg on Thursday indicated that the company might open up more options for users besides just paying more per month for larger data allowances.
4G technologies such as LTE and WiMAX represent the next stage in the evolution of wireless data technologies and generally deliver average download rates of 3Mbps or higher.
Since both WiMAX and LTE are both IP-based wireless data standards, the wireless industry has started moving away from all-you-can-eat wireless data plans and toward tiered service plans. AT&T got the ball rolling earlier this year when it announced it was dropping unlimited data plans for the iPhone in favor of plans that offered between 200MB and 2GB of data consumption per month. Verizon shortly followed suit by saying it would implement a similar pricing scheme for its 4G LTE services that are due to launch later this year. Verizon COO Lowell McAdam hinted earlier this year that LTE plans would give users a certain amount of data they could consume every month before they would have to pay overage fees.
Not all U.S. carriers are on board with metered wireless data consumption, however. Earlier this year Sprint 4G Vice President Todd Rowley explained that Sprint would be reluctant to implement 4G data caps after it experimented with 5GB data caps on its 3G EV-DO Rev. A network. Rowley said that the company found many customers becoming worried about using data after implementing the cap, meaning there was less consumption of data on the network overall.
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