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New Data Plan Math

O

Old Member

Android Expert
Verizon announced it's new Tiered Data Plans. Basically, 250MB for $15. They dropped the $10 for 25MB. Now while that looks like a good deal, lets look more closely:

The unlimited data plan has a 5B cap on it (allegedly). There are approximately 1024MB in 1GB. 5x1024=5120MB. Divide 5120MB by $30/mo=.0058 or about 1/2 cent per MB. 250MB at that same cost is $1.45. Why are they charging $15/mo for something that if you buy the unlimited data plan only costs $1.45? 100% mark up = Highway robbery.

If you divide 250/MB by $15 for the new tiered data plan, you are paying $.06/MB instead of $.006/MB. Did someone misplace a decimal point when they were figuring the math on these things?

Here is the true price it SHOULD be (I'm rounding .0058 to .006 based off of the 5GB cap on Unlimited Data):

1GB= $6.14
2GB= $12.28
3GB= $18.43
4GB= $24.58
5GB= $$30.72 (Which shows you that the .006 is a high estimate b/c it's only $30/5GB)

If it the data plan was based on the current price of $15/250MB the cost WOULD BE:

1GB= $61.44
2GB= $122.88
3GB= $184.32
4GB= $245.46
5GB= $307.20

Not that I want to give Big Red any ideas or anything.

Bottom line? Unlimited is a GREAT deal at around 1/2 cent per MB. If you pay $15 for 250MB you are not wise.
 
Wow! I totally mis-read the math, it's ACTUALLY MUCH WORSE than my post above. It's not $15/250MB, it's $15/150MB. Here is the REVISED math:

The cost at this price would be $.146 or rounded $.15/MB. At that price it would be . . .

1GB= $153.60
2GB= $307.20
3GB= $460.80
4GB= $614.40
5GB= $768.00

Thank the Lord that we got that straight. :rolleyes:
 
WormDoes said:
They better grandfather some loyal customers to allow them to keep their unlimited plans or the shit is gona hit the fan big time
Click to expand...

They are still offering the $30/mo Unlimited (for now). I think if they were smart and not quite as greedy, they could offer 1GB for $15 or 2GB for $20, still make a HUGE profit (above the standard 1/2 cent per MB). TONS of parents (myself included) would jump on those prices and add smartphones for their kids, not to mention those that are on limited budgets could then afford them too. A little cut would make HUGE gains.
 
I agree completely. 1G for $15 seems much more reasonable and worth it for the consumer. It's all about numbers for monopolies like VZW. I'm sure they did their due dilligance and market studied groups and they figured this was the best way to please us customers and keep their pockets lined at the same time
 
Hell I could handle $500MB for $15 but 150MB for $15 cmon!
we go from 5120MB for $30 to 150MB for $150
doesn't make sense. sense would be
2560MB for $15
ha yea right
 
WormDoes said:
They better grandfather some loyal customers to allow them to keep their unlimited plans or the shit is gona hit the fan big time
Click to expand...
If they decide to lower the limit on the unlimited or get rid of it alltogether they better grandfather me in or I will switch carriers in a heartbeat just to prove a point. And I encourage everybody else to do the same. If enough people leave at once they will change their ways.
 
While I agree the price for 150 meg is ridiculous, what is the penalty for going over? See it would be nice for someone with low data usage to pick the lower plan and if they went over it just bumps them to the $30 plan plain and simple, some months you save 15 bucks some months you don't. If they tiered it like that I would say yay VZW...i just doubt it is.
 
I really don't see how things changed after these new plans were announced. Unlimited is still around. The $15 plan only really affects those that want a little data. I have never had a problem with my unlimited data plan, and I don't plan on changing my plan anytime soon.
 
gruss said:
While I agree the price for 150 meg is ridiculous, what is the penalty for going over? See it would be nice for someone with low data usage to pick the lower plan and if they went over it just bumps them to the $30 plan plain and simple, some months you save 15 bucks some months you don't. If they tiered it like that I would say yay VZW...i just doubt it is.
Click to expand...

No, if you go over they bump you another $15 for another 150MB according to the new tiered plans. So in essence you would be paying $30 for 300MB rather than $30 for Unlimited.
 
Cincybearcatfan said:
They are still offering the $30/mo Unlimited (for now). I think if they were smart and not quite as greedy, they could offer 1GB for $15 or 2GB for $20, still make a HUGE profit (above the standard 1/2 cent per MB). TONS of parents (myself included) would jump on those prices and add smartphones for their kids, not to mention those that are on limited budgets could then afford them too. A little cut would make HUGE gains.
Click to expand...

I think offering options of 1GB, 2GB..etc. is too confusing for the average consumer and could cause more problems for VZW. Most people like simplicity.
 
dspcap said:
I think offering options of 1GB, 2GB..etc. is too confusing for the average consumer and could cause more problems for VZW. Most people like simplicity.
Click to expand...

I'm not saying give ALL of those options, I'm saying give one or the other. For example, right now you can get 2GB of data for wireless tether for $20/mo. Although most of us are rooted and don't pay that now, if they opened that plan up for Smartphones, it would be a VERY wise thing to do. In fact, make it $19.99 for marketing purposes. Then they could say "In these trying economic times we at Verizon Wireless understand what you are going through, that's why we developed a 2GB data plan that fits YOUR budget. With Verizon Wireless now everyone can Rule the Air".
 
ZZzzZZzzz I hope all cell phone companies don't do this. I know my contract ends in May of 2011 and I'm looking into Sprint already because I'm worried that I won't be able to keep my unlimited plan. Plus NYC has 4G now so that's a plus.
 
I lowered my mom's data plan to $15/150 mb. She was only using like 30 mb a month to look at pics of her grand daughter and broadcasting her location on Latitude. I'm happy because instead of $360 a year for data for her, now it's only $180 a year.

My dad and I are still on the unlimited.
 
Thank God for unlimited :) I use 12-15GB/month; that's using my phone for work e-mails, and I get hundreds of .pdfs (between 1-5MB each) every day. I've never been contacted by VZW or anything regarding my usage, either.
 
It seems some of you are forgetting there are a lot of people who still use dumb phones. I just saw some lady texting away with her flip phone. Now she can access the internet on her 1x2 screen and not worry about an overcharge on her data use. She can't stream music or watch tv and she probably doesn't want to.
 
Don't forget before all smartphones had to have the $30/month data plan.....now you can get one with the $15/month data plan - essentially drawing more people in to smartphones and away from dumbphones (or feature phones)

Plus - with as many smartphones having WiFi built in - you can end up with a cheaper monthly plan, but still get the benefits of having a full featured smartphone by using WiFi where you can find it (at home, starbucks etc)
 
WormDoes said:
I agree completely. 1G for $15 seems much more reasonable and worth it for the consumer. It's all about numbers for monopolies like VZW. I'm sure they did their due dilligance and market studied groups and they figured this was the best way to please us customers and keep their pockets lined at the same time
Click to expand...

While I agree that 1 GB would be more reasonable, VZW is not a monopoly. You have 3 other major carriers to choose from and in some areas you have regional carriers as well.
 
Cincybearcatfan said:
No, if you go over they bump you another $15 for another 150MB according to the new tiered plans. So in essence you would be paying $30 for 300MB rather than $30 for Unlimited.
Click to expand...

Ok, that's just outrageous. Everything else seems quite reasonable (ok, the $15 base amount should be closer to 500mb-1gb)

But it's insane that they think it's reasonable to charge some people $45 for 450mb when other people get 5240mb for $30.
 
euph_22 said:
Ok, that's just outrageous. Everything else seems quite reasonable (ok, the $15 base amount should be closer to 500mb-1gb)

But it's insane that they think it's reasonable to charge some people $45 for 450mb when other people get 5240mb for $30.
Click to expand...

Especially when WE will continue to get unlimited for $30..
 
ctc said:
While I agree that 1 GB would be more reasonable, VZW is not a monopoly. You have 3 other major carriers to choose from and in some areas you have regional carriers as well.
Click to expand...

The wireless market is an oligopoly, and although they don't have as much power as a monopoly they certainly do have some power to fix prices.
 
There are cheaper alternatives to VZW but they don't have the same coverage area. So I choose to pay more for more complete coverage.
 
To all the people worried about losing their unlimited data plan:

Verizon wouldn't able to do that if you are currently on the unlimited plan. It would be a breech of contract.
 
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