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Cell-Phone Carriers like AT&T and Verizon Killing Unlimited Data Plans | Inferno Development

Cell-Phone Carriers like AT&T and Verizon Killing Unlimited Data Plans

Cell Phone Carrier

AT&T killed its unlimited data plans recently due to large volumes of data, most probably from the Apple iPad. From $30/month for unlimited plan to $25/month for 2 GB of data bandwidth transfer per month for the Apple iPad. $20/month for iPhone limited to 2GB as well. For some it may seem like 2GB is enough, but it really depends on how often you use your data services. How often are you using your email?

Apparently, this bandwidth payment deal started around June 7th.

Engadget reports that Verizon will be switching to this limited data system soon as well (that they've hinted at for a while). No word or confirmation on pricing or whether it even will happen but Verizon will probably not miss out on this opportunity to make extra cash, especially if their biggest competitor is doing it.

This is where I'm glad I still use T-Mobile--I hope they won't follow these other company leads.

If consumers want to actually make a difference, they need to use their purchasing power to force these companies to get rid of these rip off offers. For example, all airline companies now charge $25 for the FIRST bag; Southwest doesn't, so it makes sense for consumers to start using Southwest. Similarly, we need to switch cell-phone carriers to unlimited plans to make those limited plan ideas crawl back under the rocks from whence they came.

The only way capitalism can work perfectly is through informed consumers who will punish those companies that find loopholes and ways to charge more money. Informed consumers like yourselves need to take a stand and switch to the competition no matter what. Another example, almost every cell phone company makes 2-year contracts; well then we should try to switch to providers who don't have any contracts (if they exist).

Consumer rip off

Unfortunately, most consumers are use to taking whatever is thrown at them and biting the bullet. Imagine the charge amounts when you accidentally download too many attachments (which sometimes automatically get downloaded if they are images). They already double the monthly charge when you accidentally go over your minutes.

Zen's picture

Yeah, basically, cell-phone

Yeah, basically, cell-phone service, airlines, landlords, insurance, and electric companies have powerful monopolies with limited localized competition. Those are the guys that rip you off big time because you're dependent on their services.

Addd's picture

I think I'll be stuck with

I think I'll be stuck with verizon forever.

Dan Killam's picture

I don't want to lose my

I don't want to lose my unlimited with verizon, but paying $30/month stinks. When will our providers catch up??

Baran Ornarli's picture

Awesome article Vassily, I

Awesome article Vassily, I didn't know they were going on this new path.

CyanideX's picture

It's not that there is a

It's not that there is a monopoly but it's almost like a quadrulopoly if that's a word. They each have so many customers that they only have to marginally out-do their competition to make money, or not out-do them at all-just buy more advertisement.

Anonymous's picture

@ CyanideX It's called an

@ CyanideX

It's called an oligopoly. Auto companies, insurance companies, utilities companies, cable, telephone, cell phone, news media, etc...They are everywhere...

Anonymous's picture

You have zero proof first

You have zero proof first off. Also you pay for what you pay for what you get. Tmobile sucks that's why they still give you unlimited internet. Also only 2% of ATT users exceed 2GB of uses month so for the majority, we save money, even if its $5 per month. Im happy to pay less for the same thing!

Anonymous's picture

I'm really not getting the

I'm really not getting the problem here.

US customers should realize:

1. that you are the exception country wise, all others don't have unlimited or pay $200 / month for it to cover the costs and the massive impact on all others due to tethering network spamers
2. That the unlimited dataplans are the major reason why your phone providers suck that badly on the dropped calls and network stability statistics :) (yeah I know, AT&T is worst, but reasonably, the other ones are just as subpar by international standards)

Anonymous's picture

T-mobile is great. Even

T-mobile is great. Even though their unlimited plan is really limited to 5 gigabytes per month, you can save money by not having a contract.

Anonymous's picture

the comment about taking

the comment about taking another airplane... hello south west doesnt even go to my part of the country. they only go certain places. and second. the only cell service i get at my house is through at&t no other providers have service where i live. so what am i supposed to do if i have no other option?

Ben's picture

Limits are really in place to

Limits are really in place to control 3G bandwidth, and that will soon be a thing of the past once 4G becomes more prevalent in the States. There will be a reintroduction of unlimited data plans.

Understand there's potential in any crisis, and if there is one company that understands this, its Sprint. They recently announced unlimited data plans a few weeks ago for their entire aircard/hotspot lineup, and they are extremely competitively priced at $49.99/mo. Sprint already has unlimited voice plans.

In response to the guy who said:
"T-mobile is great. Even though their unlimited plan is really limited to 5 gigabytes per month, you can save money by not having a contract."

I doubt T-Mobile will be around for much longer because they can't compete. They have the smallest subscriber base of the big 4, their profits are down, and the profit gap in relation to the other big three is widening. Wall Street Journal predicts they will be one of the brands that will disappear in 2011, and from my personal experiences, in my opinion, the company is garbage anyways.

Anonymous's picture

If only 2% of ATT users

If only 2% of ATT users exceed 2GB of data then what is the need to remove unlimted data besides just to make more money. Why can't they keep the unlimited plan along with offering the cheaper $5 dollar a month plan. That way those who do use under 2GB are happy and those who use over 2GB are too. But wait if everyone is limited to 2GB then there is the possibility of people going over, especially those that would probably use over 2GB, haha extra charges.

Anonymous's picture

In today's internet savvy

In today's internet savvy economy, 2gb is a joke. Verizon's 3G service that offers a measly 5gb/month cap is laughable at best. I'm glad I am still grandfathered in back from Alltel days for unlimited bandwidth because I use every bit of it. No I don't download entire games or fill my hard drive up with MP3's but I do watch youtube video's and click on any dang link I want to. Some websites have a LOT of data to download just for their homepage. Then you have some that auto play movies or sound clips. If you use the internet at all to do anything other than check email, you will likely go over this limit. Verizon knows this and it's frothing at the mouth thinking about all that dough it's about to rake in. I call up Verizon every month to dispute ridiculous charges that I don't let them get away with. You shouldn't either.

Anonymous's picture

Yeah arn't these companies

Yeah arn't these companies considered monopolies? And isn't this some sort of unwritten price fixing? Like, I'll raise my rates.. then the other guy is like, hea i'll raise mine too!

Anonymous's picture

Sprint is also a 5GB limit

Sprint is also a 5GB limit even though it is marketed as an unlimited plan.

Anonymous's picture

Except that most people can't

Except that most people can't afford to simply switch carriers until their contracts are up. And now that Verizon is charging an ungodly amount to terminate a smartphone plan early, people are locked in for a while.

Anonymous's picture

It is not the same thing.

It is not the same thing. Unlimited data provides limitless possibilities of what can be done with that data. Cap the data and you cap innovation. I do like the idea of tiered plans for smartphones, but leave the unlimited data intact.

Dan Killam's picture

Verizon's Droid X users are

Verizon's Droid X users are using 5x the amount of bandwidth than any other smartphone they offer. Verizon will be cutting the unlimited plan shortly I bet.

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