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No More Unlimited Data Plans From Verizon

Fran Shamo, Verizon’s CFO, stated at the Reuters Global Technology Summit on Thursday that the company would give up the current $30 unlimited data plan and switch to new tiered pricing plans this summer. The aim of this action is to make smartphone owners who use a lot of data to actually pay for it.

The move is not surprising given the fact that AT&T also axed its unlimited data plans last year and soon after, Verizon came with a 150 MB monthly traffic offer for $15, which is 50% less than the unlimited plan price. The company used this method to test the market but gave up the offer a couple of months later.

Verizon has not released any information about its future tiered price plans, but since the company tends to have similar pricing plans to AT&T, one could assume Verizon’s price plans should be in the same range as AT&T’s. AT&T monthly pricing plans vary between $15 and $45.

Nielsen carried out a study last year which revealed that the average monthly data usage was around 300MB. The study concluded that 99% of all users would spare money if they used tiered pricing plans instead of unlimited data options. Shamo also suggested the company could introduce family-data plans, but nothing has been decided as yet.