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Verizon CFO: Unlimited Data Plans Going Away, All Users Pushed Onto Shared Data

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During the JP Morgan Media and Telecom conference, Verizon’s CFO Fran “ShamWow” Shammo dropped a bomb that most of you are not going to be a fan of. During his talk, he mentioned that unlimited data plans will go away completely when the company introduces shared data plans this summer. He talked about everyone’s next upgrade cycle and how at that time, users will be forced into shared data tiers and off of the unlimited plans that you have come to love. He mentioned specifically that 3G users on unlimited data will indeed have to go into a shared plan once they upgrade to a 4G phone, but in the quote we have below, it sounds like it is going beyond that.

Here is the quote from the conference:

LTE is our anchor point for data share. So as you come through an upgrade cycle and you upgrade in the future, you will have to go onto a data share plan. And moving away from, if you will, the unlimited world and moving everyone into a tiered structure/data share type plan.

So when you think about our 3G base, a lot of our 3G base is unlimited. As they start migrating to 4G they will have to come off of unlimited and go into the data share plan. And that’s beneficial for us for many reason, obviously.

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Many of you are currently “grandfathered” into unlimited data and cherish that status as if it were your own child, so this move is going to be one that won’t be taken kindly. In the quote above, Shammo does mention that eventually, “everyone” will be on a share, but for now, it seems like just 3G customers who are forced into upgrading to 4G phones. The scariest part is the mention of your next upgrade cycle, which for many of you, isn’t all that far off.

Update:  This whole conversation with Shammo at the JP Morgan conference is fascinating. He really opened up and talked about their plans to make more and more money off of tiered data plans. They have set them up so that as consumers realize the power of LTE and use it more, that they will have to keep buying up in tiers. Also, as families add more devices over time, they will again have to buy up in tiers. While I understand this is a business and Verizon needs to continue to find ways to increase revenues, this is like a slap in the face to its customers. As if we all aren’t paying enough already, the way shared data plans are set up (according to Shammo), is to get you to continue to spend more and more money on data. Welcome to the future, folks.

Here is the audio:

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Update:  Shared some of my own thoughts here.

Thoughts?

Via:  Verizon | Fierce Wireless

Cheers Tyler, Mo, and Mike!

  • kfath1978

    bye bye Verizon….

  • http://twitter.com/poontos D Carmine

    sounds like there will be class action suit in the future.

    • http://www.gizmoninja.com/ Tabe

      For what?

      • Jake

        As soon as they try and force this on a broad set of customers and not just through new contract upgrades with subsidy and such there WILL be class actions. They would technically be frivolous based on the agreements that have probably technically been made legally, but they WILL happen if this is a forced thing on people not looking to change their current plans.

        • http://www.gizmoninja.com/ Tabe

          I’m pretty sure they wouldn’t just change it for the masses, before we even hit our contract expiration. But if they were actually dumb enough to do that, sure there would be lawsuits.

  • http://twitter.com/DannyAree DannyAree ? ツ
  • kris

    Does this constitute a breach of contract on Verizon’s part? That said could I get out of my contract and get a new phone?

    • http://www.gizmoninja.com/ Tabe

      No

  • http://www.gizmoninja.com/ Tabe
  • sinofueramos

    PagePlus at $55 for unlimited t/t with 1GB is looking better and better.

  • http://twitter.com/Chanceman512 Keith

    I will definitely be leaving Verizon if this happens. I have been a customer for a long time, and it seems like taking away our unlimited data will be just the begining!

  • Granted

    Whatever that stupid phuck Verizon CFO just said, well it left me with so many questions? Shared Data Plans? What the hell is that crap? I have my own single plan, no one else on my plan, who an I supposedly going to be sharing data with? And do you lose your unlimited if you resign a contract, but if you don’t resign a contract you keep your unlimited? If that’s the case, phuck I don’t give a damn about getting a new phone with Verizon ever again. I’ll just stick with my HTC Rezound forever. If it dies, I’ll buy a phone off contract or buy one on Ebay and just switch the number to the new phone. I know there are lots of bitches who would roll over and take anything Verizon does to them up the anus. But I’m not for one second going to stand for this. It would break my contract, and that smells of a class action lawsuit.

    Besides, I’d gladly put up with less service at another carrier, if it meant i wasn’t letting Verizon know I’m not going to take any abuse they throw at us. It will never end. The more users keep backing down and taking anything Verizon does, by continuing to being a customer and gladly taking “shared data plans”. Well you don’t have to be a genius to see that this will never end. I mean what’s next? You think if you show them you’ll continue to use their service after they take away the one thing we have all cherished about our service, that they will stop after raping that away? Hell No! It’s just like a spoiled child screaming and throwing a tantrum. The more that child will continue to act like a little devil and it will know it can continue to act out and do whatever it wants to get it’s way.

    Same principle here. The more we just keeping putting up with Verizon removing features, adding on ridiculous fees, while not improving service, continuing to hire moronic employees, and most of all take away these features and services, add new costs, but at the same time have record setting years of profit gained from us. Well do i really have to explain what happens when you keep feeding this greedy pig, by rolling over and just taking whatever feature they continually and habitually keep removing? And it’s not to put back into Verizon after seeing the record profits they made recently. No it’s too fill the pockets of the to executives and share holders. They sit in their boardroom and conspire over what feature or service they can get away with removing next, while at the same time adding a new fee. All the while laughing because they know their pathetic customers will bitch and moan on the internet. But they smack their greedy chops and salivate knowing most customers will complain like crazy, but at the end of the day they will still pay that monthly Verizon bill, like the good little sheep they are. Well not me.

  • http://twitter.com/binglut9 Brian

    Looks like I will buy my phones out right… Oh yeah good way to show thanks for your loyal customers @sshole

  • paul_cus

    So if I already have unlimited LTE, they aren’t trying to push me off yet? Just the 3G to 4G transition people? Upgrading to another LTE phone shouldn’t be a problem then. For now.
    I’m just wondering how this “share” plan actually means as I’m the only one on my family plan with data.

  • F#@& The Evil Empires

    Go to hell Verizon! Looks like I am going to start the trend of reverting back to a land line, home internet and a BASIC wireless plan. Don’t buy the hype! We were productive BEFORE data on our wireless plans and we can do it again.

  • biggz

    The only reason i am still with verizon is the unlimited data. If they want to drop the unlimited i have no problem dropping my 10 phones and going to Sprint. Sprint will like the business

  • Jimneezy

    This is where the shift to T-mobile will happen. When Google starts to sell off contract devices by the end of the year, T-Mobile’s off contract plans will be more enticing to the average consumer.

  • http://www.facebook.com/people/Michael-Emaw-Kennedy/504157652 Michael Emaw Kennedy

    In my area I don’t even get 4g yet so this is even more BS!

  • http://www.facebook.com/people/Travis-Erickson/563313398 Travis Erickson

    Here I come Galaxy Note!

  • RoadsterHD1

    Google will save the day!!!

    • Akilig

      I can’t see that happening without them buying let’s say a T-Mobile or Sprint and then building out the network. Which can’t and won’t happen overnight or by the time your contract renews. Either way I rather save myself by using my wallet to voice my dissatisfaction.

  • Tim Swann

    this sounds like a lawsuit waiting to happen. So since I i got my G-Nex in December they can’t take away unlimited data from me until Dec 2012 (2 years from when I signed a new contract) right? That would be breach of contract? right?

    what if I choose not to upgrade my phone and stick with what I have? I haven’t signed a new contract or upgraded so they can’t take away unlimited data right?

    Still sounds like a lawsuit, but I’d like to get other’s people’s take on this…

    • http://www.gizmoninja.com/ Tabe

      They wouldn’t take away unlimited until your contract is up. Once your contract IS up, I’m pretty sure they can change whatever terms they want, as the two parties (you and them) are no longer under any agreed upon terms. Once you’re month to month I think they can do whatever they please. Don’t think there will be any law suits.

  • RoadsterHD1

    someone start a petition please

  • Akilig

    Watch my account migrate to ZERO.

  • Jack Heath

    Alltel customers that were bought out by Verizon in the merger have better contracts. Many of those customers (including myself) have been able to upgrade to unlimited 4G, free tethering, unlimited text, and talk, etc and will most likely get at least one more upgrade cycle. However, Verizon has been sneaking in trying to talk many of us into new plans by adding lines, offering early upgrades, etc. Personally, I run two phones I have one unlimited and the rest are T-mobile – I WILL NOT migrate to a tiered plan.

  • Rodeojones000

    What if I don’t actually upgrade? Meaning my next phone purchase is at full price and I do nothing to upgrade or renew my plan? Wonder if I’ll still be forced to tiered/shared data.

    • http://www.facebook.com/people/Travis-Erickson/563313398 Travis Erickson

      i think that’s why he said “upgrade cycle” so regardless Shamwow wants us not only on all fours but he actually wants face down a** up

      • Akilig

        LMFAO even tho I’m pissed beyond believe right now.

  • OhAaron

    I am only on Verizon because of unlimited data! GSM true Nexus here I come!

    • Nexjersey

      +1

  • 1ofdakoolkidz

    This is why Google needs to come with the real G-Talk network, and put an end to this carrier BS.

  • http://www.facebook.com/sjtilney Scott Tilney

    Hang in there Sprint, a bunch of new customers coming your way

    • Nexjersey

      LOL

  • GCurry

    When this happens I will re-evaluation everything. And I mean, everything.

    When most network use is at home, especially for the consolidated extended family, the more fast internet to housewide wifi hotspot (or 2) plus desktops or wifi tablets, or wifi smartphones or MagicJack Pro looks good.

  • pickle3782

    When does this go into effect?

    I have been eligible for a new upgrade for well over a year but I have yet to find a phone worth the $200-$300 price tag and a contract renewal. I have been purchasing phones from craigslist. Just got a cheap Droid Incredible a few months ago and skipped picking up the Rezound for $20 when it was on sale for $50 and had my $30 upgrade discount.

    So is this article telling me that because I didnt sign a new contract last month I may have my unlimited data taken away from me when either A) I sign a new contract from this point on or B) They just decide anyone off contract has to move to a tired data plan?

    Please help me answer these questions! It might be time to switch to another carrier.

  • http://www.facebook.com/people/Joe-Buck/100003482949493 Joe Buck

    i’m guessing this would be a great time to buy stock in Sprint, looks like i’ll be there soon

  • V.A. N.

    There seriously needs to be competition. The only thing is, is that Verizon has the overall best network in the country and they know it. People really need to start leaving for Sprint, ASAP or even smaller carriers (i.e MetroPCS in NYC) in order to keep the “Big Wireless” in check.

  • http://twitter.com/marsgrafx MARS GRAF-X

    HEY VERIZON ..I.,

  • rocket658

    Moving over to Sprint after my contract is over. Way to lose another customer Verizon.

  • DDiz

    Haha such sheeps. You really think you need more than 5Mbps on a phone? Of course they would up the speed then put a cap. The quicker you reach the cap the quicker they can charge you overages. Keep thinking you need more than 5Mbps on a phone and companies will keep raping you. No, unless you’re using torrents you don’t need this BS. Stop trying to justify it.

  • beez1717

    Imagine if the government decided that if you drive over X amount of miles, you would have to pay a fine for every mile thereafter? Now imagine if you could pay them a higher price to be able to drive more miles, but the price for going over your allowance costed you more? it wouldn’t stop people from using the roads and it would only get people mad. That’s why we are mad at Verizon. I think that the government should be stepping in here and telling all phone companies to stop gouging their customers. I’d much rather have Verizon up their speed on 4G by a TON and then making you pay for more SPEED instead of more DATA. It would make people happily pay more to get better speeds and it would make their network a LOT less jammed because the people who have a lower speed would be able to have the data they use more efficiently managed over the network (and thus slowing them down)

  • saruonasaurus

    imagine when you have 4 LTE phones already and one 3G phone on a family plan. When that 3G user upgrades, it screws everyone else up i bet.

    • saruonasaurus

      or make that 3G user stay on a single line plan so the upgrade wont effect the other 4 users.

  • cgalyon

    Glad I signed up for the Republic Wireless beta program. Of course one can use WiFi to reduce data consumption regardless, but if I’m going to be forced to rely mainly on WiFi for data, then I don’t want to be forking out premium prices (e.g., $80 vs. $20).

  • http://twitter.com/Belatukadro Justtyn Hutcheson

    Wait. So, they can’t force the change until you upgrade, because when you do you agree to the new terms when you sign the new contract.
    However, if you go off contract, they can do whatever they like, because there is no longer any contractual obligation. So long as they inform you of the change, there’s nothing you can do but pay it or terminate your service.
    VZW, please, don’t be that stupid.

  • androidftw

    It sucks to have to be stuck on the nexus with below average radios. But then if you want to get a different phone you will lose your unlimited. Verizon fail.

  • nobody

    Hope they go bankrupt from the masses of people that are going to jump ship to another carrier if this happens.

  • V.A. N.

    This will hurt, if not kill, all the cloud services regarding streaming entertainment.

  • http://www.facebook.com/people/Joe-Buck/100003482949493 Joe Buck

    so when my contract is up and I get out from under this pos nexus and they try that on me, sprint here I come

  • RobMorris

    Just make an outcry to them, make them know that they fucked up. They will lose me as a customer if they drop unlimited. Make them eat their words

  • Mack

    If this shit happens im out. Ill get sprint intead. F. Y. Vz.W.

  • http://techonblogger.ward.pro/ TechRumblings

    I thoroughly researched which home ISP’s didn’t have data caps and Time Warner was the only one in my area so I went with them. I will do the same with mobile phone/data operators. I HATE CAPS / TIERED PLANS!!!! Verizon – its ok if you don’t increase revenue every quarter. But if you must, provide better service and make money that way – not by squeezing people more. Ugh! Or even a flat $/MB used would be fine – like the electric company. Making us guess our usage at the beginning of every month is a bullsh*t way of making us over pay for non-usage and gouge us for over usage.

  • http://twitter.com/jheyneman James Heyneman

    Well, I have a Thunderbolt that I got last June, but that was an upgrade on a different line. I’m up for an upgrade on my line now, what would/should I get to replace it? And don’t say Nexus.

  • hothfox

    Probably my next upgrade I’ll be trying to get my company to pay for my cell (I’m the IT Admin, so it would make sense for them to). There’s no way right now I’m willing to pay $100+/month for cell service, as I use about 5GB a billing cycle on unlimited.

  • Carl Russell

    I’m so pissed I don’t know that I can keep this G rated. Just like every other huge corporation, they forget who lined their pockets. They could give a s*** about those of us who have dropped thousands of dollars for their service. We used to be able to say that Red kind of sucked but at least they recognized those of us who have stuck with them. Not any more. They clearly don’t give a f*** about their loyal customers. I’m done. In the end, I know it’s not going to matter because 5 more people will sign up at the same time I drop them like a lead weight. Pure Greed.

  • FuqVerizon

    Suck a big fat chunky one big red!

  • notechnomo

    been on VZ for longer than 10 years. take my unlimited data and im gone (period)
    4G is great and also a great battery killer. they are making progress on power efficiency though. but as of now, not that great of progress.
    ill move to cheaper data plans and a wider array of phone options (period)

    • jboogie1289

      +2!!!! I usually keep my 4g off anyway when I’m at home and use my wireless network and when away keep it on 3g (due to battery issues). So, I guess since I’m not really using the 4g all that much then I won’t miss it. And to top it off, VZW always get the off brand version of the top notch phones (dual core version of the GSIII and so called HTC 1 series). Bunch of lames!!!! They need to do like bigger corporations and begin trimming the fat off the top……lets say starting with the big HEADED wigs that get it (unlimited data for 3g or 4g) for nothing and as a last resort pass it on down the the customers!!!

  • beez1717

    I think that Verizon should back off of this. All they are doing is pissing off the people who are most loyal to them. My family has been a customer since 1995 or so! That’s 17 YEARS of paying to you folks. Why do you insist on treating us worse then caged chickens? All you are doing is getting us to WANT to leave you. Are you TRYING to kick us long term users off your network? If that’s the case, well you’re succeeding. What you should be doing instead of having a limit on the data we use, is to perhaps up the price of using the phone. People come to your network because you have the best data speeds around. keep it cheap. If you want to make money then charge people more for getting unlimited calling and crap!

    • http://www.gizmoninja.com/ Tabe

      Problem is I’m pretty sure they already charge the most for unlimited calling and other non-data services…

  • jnt

    As much as I dislike this, the fact of the matter is data/spectrum is each carrier’s #1 commodity. With LTE being as fast as it is, that commodity is now a whole lot more valuable (competition with local ISP’s among other things), and will be eaten up a whole lot faster as well. Unfortunately, even Sprint will eventually have to give in. (And, as previously stated, Sprint throttles their towers more than people are aware already) The days of unlimited data are slowly coming to an end.

    This commodity is not free, and is now too valuable and fast to be treated in such a way. So as much as I don’t like this, honestly, I feel we’ve been fortunate to have unlimited data to date.

    • Akilig

      Hmmm this post has a lot of incorrect info on spectrum.

  • jboogie1289

    Cut and paste all these remarks, place them on VZW’s board/site and lets see how much they will squirm!!!!!!!!!