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Controversial 'share everything' data plan defended by verizon - China Iphone 4 Diamond Covers by grehh hernjer
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Controversial 'share everything' data plan defended by verizon - China Iphone 4 Diamond Covers by GREHH HERNJER
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| Article Posted: 08/30/2012 |
| Article Views: 79 |
| Articles Written: 1951 - MORE ARTICLES FROM THIS AUTHOR |
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Controversial 'share everything' data plan defended by verizon - China Iphone 4 Diamond Covers |
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Business,Business News,Business Opportunities
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The head of marketing at Verizon Wireless has defended the newshared data plans that take effect June 28 against criticism fromsome analysts and many outraged customers. Steve Mesnick told Computerworld the Share Everything plans announced on Tuesday aren't being forced on existing customers andwill mainly benefit workgroups and families with multiplesmartphones who want to share data across as many as 10 devices. "We're allowing the existing customer base to have a choice ...we're not forcing anyone to more to new plans... I take exceptionto [comments] of people leaving Verizon," he said.
One analyst said on Wednesay that Verizon mishandled theintroduction of the new plans, which could hurt the company . But Mesnick said the announcement was made well in advance of theJune 28 launch to give the public time to absorb a large amount ofinformation that fundamentally changes how voice, text and dataservices are charged. Mesnick said he's confident the plan will succeed, partly becauseVerizon interviewed 50,000 customers in advance to field theiropinions. He provided Computerworld a chart showing how the newplan will affect monthly fees of various existing customers, andconceded that fees for "some people go up and some go down ... sopeople can make an assessment of wanting to switch." Mesnick also admitted that Verizon knew that its decision torequire current unlimited data users to pay full price for a newsmartphone when they renew their contracts would cause acontroversy.
"We knew the unlimited news would be perceivednegatively, so we weren't surprised," he said. A "healthy percentage" of Verizon's smartphone customers currentlyhave unlimited data plans, he said. In addition to needing to buy anew iPhone at full unsubsized price for $649 to keep unlimiteddata, he suggested they activate an older device they already ownor buy an inexpensive one on eBay. Mesnick, who oversaw creation of the new plans, said their centralintent is "simplicity" so that a family or work group could predicthow much they have to pay monthly instead of tallying several dataplans on a single account.
"What customers care about is 'what's mytotal bill at the end of the month?'" he said. He emphasized that small business customers will desire the newplans because a single account can include friends or colleagues or"whoever you trust to be on an account." Mesnick said negative comments on websites by customers were to beexpected because the concept is broad and new. "We're changing thestructure of wireless and everyone is getting their head aroundit," he said. "The press especially is having a tough time tryingto understand it." In addition to the numerous details of the plans announced Tuesdayin a press release and on the Verizon Wireless website , Mesnick said Verizon will also offer a plan for basic phones thatcosts $40 a month for 700 minutes of calling, with texting and dataextra. Also, first-time smartphone buyers will be able to qualifyfor unlimited calling and texting and only 300MB of data per monthfor $80.
The other plans published on Verizon's website call for a monthlyline access charge per device, ranging from $10 for a tablet to $40for a smartphone, with data service charges added on that start at$50 for 1GB per month, which can be shared across 10 devices. Mesnick said that no other plan offers buying as little as 1GB for10 users, which would be especially valuable for customers who usetheir smartphones for a lot of texting and calling and not as muchfor data. He said that most smartphone users want texting as well,which makes the unlimited texting feature of the news plansespecially attractive. As an example of the impact of the new plans, Mesnick said that twosmartphone users under current rates with the lowest amount ofvoice minutes (700 minutes), plus unlimited texting and twoseparate data plans of 2GB each would pay a total of $160, butwould pay just $150 under the new plan, with the added benefit ofunlimited voice. In a chart, Mesnick provided showing nine different examples of oldand new usage plans, all the new shared plans would cost the sameor $10 to $50 less per month.
The biggest savings, of $50, in the chart would be for an accountwith three smartphones, one tablet and one jetpack Wi-Fi unit thatall together today costs $300 with 1,400 voice minutes and 13GB ofdata. Under the new shared plans, only 10GB would be expected to beshared, with unlimited talk and texting for a total of $250. Mesnick didn't offer any examples of where the new plans would costexisting customers more, although he admitted some could, whichwould mean a customer might want to stay on an existing plan. One Verizon customer, Michael Adams, contacted Computerworld to saythat he indeed would pay 14.4% more under the coming sharing plansfor his family's four smartphones and one basic phone.
Today, on aNationwide talk and text share 1400 plan, Adams pays $262.89 amonth for all five phones and data (with three on unlimited dataaccess), including phone insurance. Under the coming share plan, hewould pay for 10GB of shared data with a discount of 20%, withunlimited voice and text, reaching a total of $300.96 withinsurance, per month, an increase of $38.07, Adams said. "Under this new plan our bill will go up an additional $38 a month,so it does not look like it will benefit multifamily householdseither," Adams said via email, noting that he works for a bank, andnot a competitor to Verizon. "I agree that a lot of people willjump ship and abandon Verizon." But Mesnick and some analysts noted that Adams and others like himhave the option of staying with their current plans.
"I don't think these changes will cause Verizon to lose customers,"said Roger Entner, an analyst at Recon Analytics. "All the existingVerizon customers don't have to change to Share Everything unlessthey are renewing to buy a phone with a subsidy." Entner said Verizon is presenting a "very clean vision for thefuture, a future of connected devices where all of us have morethan one device we connect. A lot of people who are complaining arethinking in a single device, single person-world." Nonetheless, customers have begun mounting campaigns against theVerizon changes, including one Facebook group , created by Adam Diamond, called "Stop Verizon from Charging forUpgrades." Matt Hamblen Iphone 4 Diamond Covers mobile and wireless, smartphones and otherhandhelds, and wireless networking for Computerworld. Follow Matton Twitter at @matthamblen or subscribe to Matt's RSS feed.
His email address is . See more by Matt Hamblen on Computerworld.com. Read more about mobile and wireless in Computerworld's Mobile and Wireless Topic Center.
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