AT&T and Verizon have both recently announced that they're introducing new phone plans. I love to compare, and do math, so let's play with some numbers, shall we?
Here's a breakdown of what the new Verizon "shared data" plan looks like, versus Family Mobile. Our example family: 4 smartphones, they want 8GB of data.
On Verizon's new plan, they'll pay $90 a month for 8GB data / unlimited minutes / unlimited text, plus $40 per phone "line access" fees. Total: $250 / month + tax. (Source: http://arstechnica.com/gadgets/2012/06/verizons-shared-data-plans-wont-save-solo-users-much-money/ )
On Family Mobile, they'll pay $150 a month for all 4 phones unlimited data / unlimited minutes / unlimited text. For 8GB of high-speed data, they'll add $40 per month. Total: $190 / month + tax. (Source: http://www.myfamilymobile.com/ )
There's another crucial difference, though. If they go over their 8GB data allowance on Verizon, they will be charged stupendous overages. This is because, as Verizon spokespeople will happily tell you, "unlimited data is not something that we think is sustainable in the long run." (Source: http://news.cnet.com/8301-1035_3-57450763-94/verizon-unveils-share-everything-family-plans-for-data/ )
On Family Mobile, however, if they exceed their 8GB data allowance, their data speed slows down, but they get no additional charges. (Source: https://www.myfamilymobile.com/Support/DeviceSupport/DeviceSupport.aspx?supporttype=RATEPLANS#GeneralFAQ-Answer5 )
AT&T is close to releasing a plan similar to Verizon's; they're already planning to, they're just finalizing details. (Source: http://reviews.cnet.com/8301-12261_7-57429659-10356022/at-t-mobility-ceo-family-data-plan-coming-soon-scoop/?tag=mncol;txt )
I wonder how long it's going to take people to figure out that if they buy their phones outright, they more than earn back the cost of the phone over the first two years ($600 for a really nice phone; $60 / month savings = 10 months to breaking even versus a contract = 14 months of straight-up savings at $60 / month = $840 dollars saved over the life of a standard two-year contract.)
Now, I used Family Mobile as an example; Straight Talk, Simple Mobile, US Cellular, Cricket, and boatloads of other low-cost, no-contract carriers are doing the same thing Family Mobile is.
I gotta admit, though, I think it's funny: the two biggest carriers in the country, AT&T and Verizon, are both advertising like mad to get people to come on their networks based on how fast their data service is, while simultaneously designing plans specifically to discourage heavy data use. And so, so many people will use the argument that they shouldn't be providing unlimited data anyway because "hardly anyone uses it."
Mkay, then, if few users actually use outlandish amounts of data, how does it hurt the company - or cost them anything - to offer unlimited data? It gives the customer the convenience of knowing that - for example - if they go on a vacation and will be taking, and uploading, lots of pictures, they don't have to change a thing. Kinda like, say, on Sprint, T-Mobile (Source: http://www.cnet.com/8301-17918_1-57438540-85/t-mobile-wont-join-the-shared-data-party/ ,) Family Mobile, or any of the no-contract carriers.
So... Who's up for ditching Verizon and AT&T stock?
