Verizon recently made indications that the company plans on charging wireless customers based upon their internet data usage and introduce new plans with limits. This move follows their rival AT&T's recent decision to stop selling unlimited data plan to customers. AT&T has moved toward selling two different service plans that include monthly caps.
This move was primarily due to the massive increase in Verizon's customer base. The wireless industry requires billions of dollars in investment in order to sustain a network that smoothly and effectively deals with traffic. While the details of this plan aren't clear, it may mimic the AT&T plan of $15 a month with a limit of 200 MB of data and $25 a month with a cap of 2 GB. The plans will allow Verizon to garner increased revenue for the wireless services they provide. Monthly fees coupled with the potential of people going over the cap will ease the strain companies have on maintaining smooth network traffic.
Increased revenue with Verizon's new data plans will allow more money to be siphoned into areas that will potentially increase innovative wireless technology while subsequently dealing with network trafficking. Critics have claimed that there may be a risk of consumers switching networks because they may like unlimited plans over the risk of overusing their data plan.
Regardless, the move symbolizes the company's greater goal of create a fiscally secure and strong company.
http://online.wsj.com/article/SB10001424052748703384204575509640930858752.html?mod=WSJ_newsreel_technology
Verizon is making a smart move since the expenses of a network are enormous. Charging costumers based on their internet usage is a more effective strategy than to offer unlimited plans. The question that many ask is: Will the costumers prefer other network than Verizon? This is however, not a concern for the network since the main competence of Verizon, AT&T, has stopped selling unlimited plans to the public. This will not be an issue Verizon will face but will be a benefit since they plan to bring wireless innovations which will also help to have more funds.
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