Verizon made a huge announcement last week: Verizon plans to kill off its grandfathered unlimited data plans.
Verizon stated to the NY Times:
Customers will not be automatically moved to new shared data plans. If a 3G or 4G smartphone customer is on an unlimited plan now and they do not want to change their plan, they will not have to do so.
When we introduce our new shared data plans, Unlimited Data will no longer be available to customers when purchasing handsets at discounted pricing.
Customers who purchase phones at full retail price and are on an unlimited smartphone data plan will be able to keep that plan.
The same pricing and policies will be applied to all 3G and 4GLTE smartphones.
Breaking down the statement, customers will be able to keep their unlimited plans, but at the cost of having to buy their new phone every two years in full.
Currently, the 16 GB 4G LTE Droid Razr is offered at $199.99 before taxes with a 2-year contract. If customers choose to keep their unlimited data plans, customers are forced to pay the $599.99 retail price.
According to Consumer Reports, only 18 percent of AT&T unlimited user subscribers use over 1GB of data, with 1 percent using more than 5GB.
Roughly 48 percent of people with unlimited plans don’t even use enough data to warrant the need for an unlimited data plan, and even more surprising, 15 percent of unlimited data plans use less than 50MB a month.
Verizon believes this new policy will help its customers save money by using a plan that offers the appropriate amounts of data for individual subscribers at lower rates.