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What's Verizon Wireless up to?

Carrier lays groundwork for forthcoming usage-based pricing

Wireless Alert By Joanie Wexler, Network World
January 15, 2010 01:54 PM ET
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Industry analysis by expert Joanie Wexler, plus links to the day's wireless news headlines

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Verizon Wireless has just revamped its service plan pricing in a move to get the masses hooked on mobile data. The lower prices are intended to drive greater usage of data-centric services so that by the time usage-based pricing kicks in on the carrier's LTE 4G network, the crop of users addicted to mobile data will more likely be willing to stick with the program for the privilege of continuing their newfound habits.

The new wireless plans lower unlimited voice calling charges to $70 a month from $100. Unlimited texting costs an extra $20 a month. For adding unlimited data on high-end smartphones, users pay another $30 a month.

Traditionally, data plans have not been the money-maker in wireless; voice has been the cash cow that has kept the mobility ship afloat. But all that is changing with app stores, wireless video and, in general, the rise of the broadband mobile Internet.

VZW says the new pricing brings it into "reasonable competitive range" with all-you-can-eat competitors – most notably, Sprint, which offers the whole kit and caboodle of unlimited voice, text, data, GPS and Sprint TV for $100 a month. VZW's unlimited talk, text and data packages for smartphones totals about $120 per month.

Reportedly, VZW will also cut back on the number of phones it offers, from about 80 to 50. That's one step toward helping not only VZW streamline its operations and costs, but enterprises, too. The mobile device management and security issues associated with enterprise mobile fleets only become more complex and costly as the number of phone and mobile OS types grows.

Read more about wireless & mobile in Network World's Wireless & Mobile section.

Joanie Wexler is an independent networking technology writer/editor in Silicon Valley.

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