What I don't understand is why both the shared data plan and per line access fees for phones cost so much.
Verizon is also introducing shared data-only plans for data-only devices such as tablets, hotspots and modems and pricing for that is much more reasonable:
4GB: $30 (vs $70 w/voice)
6GB: $40 (vs $80 w/voice)
8GB: $50 (vs $90 w/voice)
10GB: $60 (vs $100 w/voice)
Per Device Access Fee:
Mobile Hotspot/Notebook/USB/etc: $20
Tablet: $10
Obviously, part of the $30/$40 access fee for smartphones and dumbphones go to phone subsidies. Let's take out $10 as access fee for phones (same as the access fee for unsubsidized tablets) and we're left with $20 for dumbphones and $30 for smartphones. A typical contract is 2 years or 24 months so that gives us $20 x 24 = $480 (dumbphone) and $30 x 24 = $720 smartphone. Most dumbphones I see at online retailers are under $100 (heck, I've bought a few for $20). Low-end Android devices, you could buy for $100-150 without contract. The Galaxy Nexus is $400 and the iPhone, carriers only subsidize $450 at most.
rui-no-onna,
I'm really not trying to bash you in particular here but this post highlights one of the major mis-perceptions I have noticed in response to these new share everything plans.
Many times I have seen people look at the "Account Access Fees" for the mixed voice&data share everything plan, and have attributed that 100% as the "data fee" The truth is the reason the 10 GB of data "costs more" than in the data-only plans is because in the mixed plan the account access fee also goes to pay for the
unlimited text and talk. Just because the only visual difference in the mixed plan levels is the data bucket you are given, doesn't mean that is all you are paying for.
Take a gander at the voice-only option in the new share everything plan. That has only 300MB of data, but has an account access fee of $70. "Account Access Fees" are definitely not synonymous with "Data Access Fees"
Your list actually highlights that nicely. The "price per data bucket" is $40 higher in the mixed plan at all buckets, and includes the same additional feature at all levels (unlimited talk and text). It is clear that VZW is valuing the unlimited talk and text at $40.
To expand on my explanation of "why are the prices so high?".... Its the unlimited talk and text. Sure VZW is moving to more cost-efficient ways of providing those services, yes they should pass along those savings to the customer,
BUT they have pre-existing price levels for the unlimited talk and text service, and they will not willingly discount those prices and hurt their bottom line (greedy greedy greedy).
Lets look at existing family share plans /w Unlimited Talk&Text vs. Share Everything Voice Only with unlimited Talk&Text. (im rounding to the nearest dollars
Existing Family Plans:
- 1 Line - $120 + $30 = $150
- 2 Lines - $120 + $30 = $150
- 3 Lines - $120 + $50 + $30 = $200
- 4 Lines - $120 + $50 + $50 + $30 = $250
- 5 Lines - $120 + $50 + $50 + $50 + $30 = $300
New Share Everything Plans Voice Only
- 1 Line - $70 = $70 ($80 CHEAPER!!!)
- 2 Lines - $70 + $30 = $100 ($50 CHEAPER!!!)
- 3 Lines - $70 + $30 + $30 = $130 ($70 CHEAPER!!!)
- 4 Lines - $70 + $30 + $30 + $30 = $160 ($90 CHEAPER!!!)
- 5 Lines - $70 + $30 + $30 + $30 + $30 = $190 ($100 CHEAPER!!!)
I hope this clearly shows the major segment that is benefiting the most from the new plans, as well as where some of the costs associate with the new mixed device plans are going.
It might not make sense to You, I, or anyone else who has never had unlimited minutes, but to Verizon that's how much that service is worth in the old system, and how much they are charging in the new system. They think we are getting a great deal because those prices are so much lower now, but they fail to account for those of us that have more basic minutes plans, with a $10 per line access fee, and not the crazy $50 per line access fees associate with unlimited minutes.
This explains why dumb-phones now have a $30 per line access fee (the per-line fee is
$50 in existing family plans with unlimited minutes.
Keep in mind; if per-line access to the unlimited minutes alone is worth $30, then the $40 per line access fee for smart phones only actually sends $10 towards the cost of data, another reason why the price for the base plan may be higher than you expect given the data levels.
I think forcing unlimited talk and text is ridiculous, especially when they don't offer it at a decent price, but I can see that that is where Verizon is thinking these plans are justified.
When we are complaining to Verizon, and by all means we should complain long and hard and loud, we will be most effective if we fully understand where each $ they charge is coming from, and how they want to justify it. Arming ourselves with that knowledge will allow us to argue our points better and hopefully gain traction for a change in this silly new pricing scheme.
TL : DR
1. There is a common mis-perception that the account access fee in the mixed voice&data share everything plans only pays for the data, when in fact it is covering both data and the voice.
2. People seeing these new pricing schemes who have never had unlimited minutes before (including myself initially) don't realize that it currently costs a $50 per line access fee (as opposed to $10 per line access fee).
These two facts explain (a) why the new prices are what they are, (b) why data isn't necessarily that over priced in the new system (compared to multiple $30 for 2GB add-ons), and (c) why it is really deceptive and cheap and unethical for Verizon to be forcing unlimited minutes on all of these plans without a drastic drop in the prices they charge.