Verizon Dropping Unlimited Data Plans For iPhone Soon
Verizon’s Chief Financial Officer, Francis Shammo, suggested on Tuesday at an investors conference that Verizon will soon end unlimited data plans for its recently acquired iPhone. The fading away of the unlimited plans may be happening as soon as summer, a move that many feared would come sooner than later. As of right now, Verizon Wireless allows unlimited web-surfing and data plan usage for $30 a month for users of its version of the popular Apple smartphone. This will be changing in the months to come though.
The iPhone, released just weeks ago on the Verizon network, Shammo says, simply had to be introduced with an unlimited data plan on the table. This is because Verizon “didn’t want to up up a barrier” to potential iPhone buyers interested in coverage from Verizon. Shammo’s comments, are being taken to mean that unlimited data plans will end with the introduction of the iPhone 5, a fifth generation product that will certainly be coming with a CDMA version as well.
Following the CFO’s remarks, analyst Jonathan Chaplin told Reuters that “I would take that comment as a pretty strong signal there’s an iPhone refresh coming to Verizon in the third quarter.” He also mentioned that many investors may be apprehensive at this point with regards to another iPhone release, especially since many customers would likely be upset that their new Verizon iPhone will be “out of date” only months after its release. “You’d be worried there’d be a backlash from consumers. What they don’t want is for Verizon to be put in a position where its forced to offer free trade-ins,” Chaplin says. “There’s some risk of that.” There could be a possibility that the Verizon network might be on a different cycle then its rival, AT&T, which might be appealing to some customers and annoying to others. Regardless, the unlimited data plans will be gone sooner rather than later.
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