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Verizon Wireless To End Unlimited Data Plan Ahead Of iPhone 5 Launch?

Verizon Wireless has decided that it will end its unlimited data plans for the iPhone as early as summer, which officially starts on the 21st of June 2011, two weeks after what we expect is the launch date of the iPhone 5.

Financial news outlet Bloomberg reports that that Chief Financial Officer Fran Shammo told an audience at a Morgan Stanley conference that unlimited data service on the iPhone especially at the current entry point of $30, is "not a long term solution".

Verizon Wireless, which has started to sell the iPhone 4 at the beginning of February, will shift to a tiered pricing model in the second half of the year in order to prevent iPhone users from impacting negatively on the quality of service of the network.

The mobile phone carrier is expected to sell more than two million units this quarter alone, a number that is set to rise if, as expected, Apple delivers a CDMA version of the iPhone 5 from launch.

Verizon Wireless revealed that it may limit download speeds of its top five percent customers in some specific areas to avoid congestion, while seeking an additional revenue stream (when selling optional data packages) as users gradually move to smartphones.

Shammo mentioned that up to two thirds of Verizon Wireless customers currently use feature or multimedia phones with optional data plans ranging from $10 per month upwards.

Désiré Athow
Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.