Saturday, June 16, 2012

Earlier this week I read that Verizon was introducing a new phone plan called “Share Everything.” There isn’t much growth room in the mobile phone market. Any real growth has to be by cannibalizing other customers from customers. So without new contract customers and existing ones decreasing voice and text usage, the revenue stream for providers is plateauing. Apparently Verizon has decided that revenue growth is going to be in data because that is the only thing that customers seem to want more of. And boy does Verizon intend to squeeze every buck out of you that it can.

Under the new Share Everything plan, an account (not a line) is set up. This account is sort of like a pot in which voice, texts, and data will sit and can be “shared” with other devices that are plugged into the account. Voice and texts will be unlimited but the data will be capped and that determines the tiered charges. $50 for 1GB, $60 for 2GB all the way up to $100 for 10GB. The device fees are basically plug-in charges into this pot. Smartphones are $40, tablets $10.

 If I was a new customer and coming to Verizon and I wanted a plan that was comparable to what I have and use now, I would have to shell out about $100/month which doesn’t include the insurance, taxes, and fees. Take a look at the chart below. With my old plan and the discount I get through my employer, I pay roughly $76 every month. The current Verizon plans are pricier but not shockingly so. The new Share Everything isn’t just sticker shock—it needs to come with a “Danger: High Voltage” sign.
I do not intend to go with Share Everything and I was sitting on an upgrade eligibility that I wanted to hold off on until the new iPhone was announced. But with Verizon putting this plan into effect on June 28th, I had to decide whether I wanted to buy a phone now and grandfather in my contract and rates or go month to month and pay for my next phone at full price.

None of Verizon’s offerings seemed great. I liked the Droid Maxx but that is getting a little old already. It’s a Gingerbread device and still hoping for an Ice Cream Sandwich update. Jelly Bean is around the corner! The Samsung Galaxy S III looked good but it wasn’t going to come to Verizon until after the new plans were in place. But I did wonder what would happened if I preorder.

Turns out I could! So I’m all set for the next two years at least.

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